This morning, NEA New Hampshire announced its support of HB 634.

“NEA New Hampshire is proud to support HB 634, a bill to close tax loopholes to help open opportunity for all,” said Scott McGilvray, NEA-NH President.

“If we are serious about education and economic growth, then we can no longer afford revenue sapping tax loopholes, including the capital gains loophole. It is time to close these loopholes, provide some tax relief to the middle class and invest in our future. Together, we can expand opportunity for all, not just the wealthy few.”

Closing the capital gains loophole alone would generate approximately $120 million in revenue. Overall, the HB 634 would generate up to $100 million in net revenue for the general fund each year once fully implemented, including consideration of the increased exemptions, local aid and property tax relief.

It’s not every day the Legislature votes on reducing your property taxes. The basic mechanics of this bill would be to close the loophole currently used that allows taxes to avoid being paid on assets transferred to a trust. The bill would eliminate that loophole while at the same time increase the exemption limit to assure those trusts of more moderate size are not included in the collection of taxes.

HB 634 would also reduce the taxes paid by approximately 70,000 Granite Staters, both by boosting the value of the exemptions available under the interest & dividends tax and by enabling more homeowners to claim property tax rebates. Specifically, more retirees would see a tax cut than an increase.