New Hampshire’s Lesson for America (William Ruger & Jason Sorens, December 11, 2023, AIER)
So what has New Hampshire been doing right?
First, the state has gradually and responsibly cut growth-impeding taxes, such as business taxes and the interest and dividends tax, which is being phased out. Since these tax cuts began in 2015, New Hampshire’s economic growth rate has powered ahead of its closely connected neighbor, Massachusetts.
Second, the state has mostly kept school funding local, which tends to make educational decisions more fiscally responsible. Property owners have more direct leverage and choice over their local property taxes than they do state taxes.
Third, the state is trying to solve its housing shortage, which it shares with most other Northeastern states. Local zoning has strangled housing construction, and the state has stepped in with a law requiring towns to allow “accessory dwelling units” (in-law apartments), expedited local permitting, and a housing appeals board to provide quick resolution of zoning disputes.
Fourth, the legislature has expanded personal freedom for its citizens, most notably with Education Freedom Accounts. The state’s per-student adequacy grant to local districts is now available for parents to cover educational expenses outside the public school system.
Finally, the state has been getting rid of cronyist regulations in order to increase competition and opportunities in the marketplace. Some small barriers to starting businesses have been repealed, and the governor signed universal licensing reciprocity this year.