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Originally Posted by fatlazyless
1. I honestly would truly welcome a drastic loss in value of my wf home if it were to lead to much lower prop taxes, as I plan to own it 'forever', anyway.
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Less....First of all, if NH enacts a broad-based income tax it will do nothing to reduce the local part of your property tax which is by far the larger part of your total property tax bill. It may replace the statewide property tax. But I've never seen a government entity voluntarily give up money, so the result would be revenue-neutral. But, wait....All property owners would not have to pay the statewide property tax anymore, including out-of-state residents. So, if I lived in MA and owned a NH vacation home, I'd save money on the deal. Since there is more than one MA (or other state) vacation home owner, many out-of-state residents would save money. Thus, the added income tax would no longer be revenue-neutral since those lost statewide property tax dollars would need to be replaced. How? By having a higher income tax paid by NH residents. Meaning....out-of-state property owners would have a net savings in taxes paid to NH were the income tax replaced the statewide property tax, while NH residents would need to offset that tax revenue loss by paying
more in taxes! Not to mention that once the tax-and-spenders in Concord have a broad-based income tax, it'd be real easy to increase it to support their social-spending habits.