Relative to the business profits tax applicable to certain large, low-wage employers.
If successfully enacted, HB 1478 will impact the business profits tax structure in New Hampshire significantly. The increase to 8 percent specifically targets large employers whose compensation practices do not meet the established wage threshold. The anticipated revenue from this measure is uncertain but is expected to contribute to the General Fund and Education Trust Fund, with a gradual increase in revenue being projected in fiscal years 2023 and 2024. Opponents warn that this tax increase may discourage business growth and lead to job losses, particularly in sectors that rely heavily on low-wage labor.
House Bill 1478, known as the 'Stop Corporate Welfare Act of 2022,' proposes an increase in the business profits tax for larger businesses that employ low-wage workers. Specifically, it seeks to impose an 8 percent tax on the taxable profits of companies with over 100 employees that pay any of their workers less than $15 per hour. This bill is aimed at addressing the economic disparities created by low-wage employment practices and intends to redirect funds for public benefit, effectively curbing what proponents view as corporate welfare.
The sentiment surrounding HB 1478 is mixed, marking a division between pro-labor advocates and business interests. Supporters of the bill argue that this measure promotes economic fairness and discourages practices that exploit low-wage workers. They believe that by levying this tax, the state can allocate more resources to education and public services. Conversely, opponents, including many members of the business community, portray the bill as a damaging move that could deter new businesses from relocating to or expanding within the state. This conflict highlights ongoing tensions between economic growth strategies and living wage campaigns.
Despite the supportive rhetoric around worker welfare, several points of contention exist regarding HB 1478. Critics argue that the bill disproportionately targets businesses that might already be vulnerable and could lead to layoffs or reduced hiring. Furthermore, discussions have emerged about whether the additional revenue generated will adequately address the issues faced by low-wage workers, or if it simply shifts the burden to employers without creating substantial wage improvements. The overall effectiveness of the bill in achieving its goals remains a central point of debate among lawmakers and advocates alike.