Watch: NH House Democrat- "We Need Tax Increases"

Statement Sparks Tension During House Commerce Committee Meeting

CONCORD, NH — In a surprising moment during Tuesday’s House Commerce Committee meeting, Democrat State Representative Chris Hebert of Manchester declared, “We don’t need to have tax cuts. We need to have tax increases.” The comment drew an awkward silence and puzzled looks from Republican lawmakers, who have made tax cuts a hallmark of their legislative agenda.

New Hampshire Republicans have consistently worked to solidify the state’s reputation as a low-tax haven, phasing out the Interest and Dividends Tax in the last budget and maintaining a steadfast commitment to avoiding any broad-based income or sales tax. In the current legislative session, Republicans have introduced proposals to lower taxes even further, including eliminating the Communications Services Tax, which applies to cell phone bills, and repealing the surcharge on electric bills collected through the Office of the Consumer Advocate. Both measures aim to provide immediate relief to families struggling with rising costs of living.

Another Republican priority is reducing the Business Enterprise Tax (BET), which disproportionately affects small businesses. Republicans argue that lowering the BET would encourage growth and investment, particularly for entrepreneurs and family-owned businesses, which are the backbone of the state’s economy.

Hebert’s call for tax increases stands in stark contrast to this approach and has already drawn sharp criticism from GOP leaders. “New Hampshire’s success is built on fiscal discipline and a commitment to low taxes,” said one Republican legislator. “The idea of raising taxes is completely out of step with what Granite Staters want and need. It’s not just bad policy—it’s a nonstarter.”

While Hebert did not specify which taxes he believes should be increased, Republicans were quick to point out that any new taxes or higher rates could harm the state’s competitive edge. New Hampshire currently boasts one of the nation’s strongest economies, with no broad-based income or sales tax and a favorable business climate.

Republicans also emphasize that their tax-cutting policies have already delivered tangible benefits. By gradually eliminating the Interest and Dividends Tax, they have provided relief for retirees and middle-class families who rely on investment income. Similarly, proposals to cut utility and communication taxes aim to ease financial burdens for everyday residents at a time when inflation and energy prices remain concerns.

Critics of Hebert’s remarks argue that increasing taxes would undo this progress, drive businesses away, and make life more expensive for working families. “Raising taxes is not the answer,” said a Republican member of the committee. “We should be focused on reducing costs for our residents, not adding to their financial burdens.”

The video of Hebert’s remarks is already making the rounds and is expected to become a focal point in the broader debate over New Hampshire’s tax policy. With Republicans holding firm against any tax hikes, Hebert’s comments are likely to solidify the partisan divide on the issue and reinforce the GOP’s stance that any tax increases are dead on arrival.

As the legislative session unfolds, Republicans are doubling down on their efforts to deliver additional tax relief to Granite Staters while safeguarding the state’s low-tax advantage. Meanwhile, Democrats like Hebert face the challenge of convincing voters that increased revenue is necessary to fund government priorities—a position that may not resonate in a state that takes pride in its fiscal conservatism.