Sunday May 13, 2012

CONCORD, N.H. (AP) -- New taxes on personal income would be banned in New Hampshire -- a state with no personal income tax -- under a proposed constitutional change before the Senate for a vote.

The Senate is scheduled to vote on the proposal on Wednesday. The House passed it in January over the objections of critics who argued it could have unintended consequences, such as higher business taxes.

Supporters argue enshrining the prohibition against the tax in the constitution would leave any existing taxes untouched.

New Hampshire is one of nine states that does not tax personal income, though it taxes interest and dividends. New Hampshire and Alaska are the only states without taxes on either personal income or sales.