New Hampshire’s constitutional push to kill income taxes reveals a deeper fight over who pays for public services

New Hampshire lawmakers are attempting to lock in the state’s tax-free status by banning income, sales, and capital gains taxes in the constitution — a move that would force future generations to bear the full cost of public services through other means. The state currently has no income, sales, or capital gains tax. The proposed amendment would enshrine that status, requiring voter approval and a future two-thirds legislative supermajority to reverse. More than 100 people attended a hearing on the proposal before the House Ways and Means Committee, where House Speaker Sherman Packard argued the decision should rest with voters. “What are we afraid of? The people who elected us, they are the bosses,” he said. Republican Gov. Kelly Ayotte endorsed the amendment, calling New Hampshire a “beacon of freedom and opportunity” due to its tax structure. House Democratic Leader Alexis Simpson opposed the amendment, calling it a political stunt that distracts from the affordability crisis. A similar proposal previously failed to pass the House with the required 60% supermajority. In March, Democratic lawmakers proposed a 3% flat income tax and statewide property tax to raise $1 billion annually for public schools. That proposal was rejected by Republican legislative leaders and the governor. The 2012 anti-income-tax referendum failed to reach the two-thirds threshold needed for constitutional change. Americans for Prosperity-New Hampshire cited ongoing threats to taxpayers from proposals like the “battery tax” and other mandates.