New Hampshire has no income or sales tax

[BrandonTO416]

M. Brown said NH had no sales or income tax on the state level. I had a hard time believing it, but its true:

http://www.state.nh.us/revenue/gti-rev.htm

Since NH isn't the boomstate we all imagine - I can tell taxes aren't the top priority when speaking of entrepreneurship.

I wonder why NH didn't top the list on the "top cities for entrepreneurs"...

[M. Brown]

I dont know either. NH just doesn't get enough recognition. People think its full of cows when in fact it is about to past Maine in population, and Maine is bigger than all the rest of the states combined.

[Cotuit]

M. Brown said NH had no sales or income tax on the state level. I had a hard time believing it, but its true:

First off, why would you ever doubt M. Brown!?

I wonder why NH didn't top the list on the "top cities for entrepreneurs"...

Aside from because it's not a city? New Hampshire does still have a higher cost of living than southern or western areas that probably topped the list. The cost of living is lower than the rest of the Metro Boston area (of which southern NH is a part), but it is higher than places like Metro Charlotte or Atlanta or Phoenix... The lack of sales and income taxes are made up for in part by high property taxes, which can lower the state's competitiveness.

The tax thing is cool though. Massholes flood across the border to shop. New Hampshire does have a lot of business and growing businesses in the southern part of the state.

Another interesting thing about New Hampshire, they have a part time legislature and a two year term on their Governors. The 'Live Free or Die' ethic calls for a small government.

[M. Brown]

Yeah why would you doubt me. jk

[tocoto]

NH has no sales or income tax. It is a very fast growing state percentage-wise. Lots of people in the the boston metro move there for less expensive living. It has not real large cities, but nashua, portsmouth and manchester are all growing rapidly especially around the old central cities. North of manchester the state becomes pretty rural.

[Guest donaltopablo]

Do they have high property taxes? Is there absolutely no sales tax, or is there just no state sales tax (all sales taxes are administered by the county?)

[M. Brown]

Absolutely NO sales tax and no state income tax

[BrandonTO416]

According to this:

http://www.bestplaces.net/html/ccmain.asp?...H&rcity=3345140

Charlotte, NC:

Median Home Cost - $141,920

Property Tax rate - $12.40

Manchester, NH:

Median Home Cost: $119,890

Property Tax rate - $35.30

The property tax rate is higher, but doesn't appear to be so much higher that it offsets the others.

[BrandonTO416]

Atlanta and Nashua are more competitive to one another.

http://www.bestplaces.net/html/cchous.asp?...H&rcity=3350260

Atlanta property tax rate - $19.40

Nashua, NH propery tax rate - $29.40

[Guest donaltopablo]

Atlanta city's property tax is pretty high, and getting higher.

That's pretty cool that it has zero sales tax, I had no idea.

[BrandonTO416]

Atlanta and Nashville's rates are similar... Comparative to most cities, Atlanta doesn't seem to be very high.

Taxes are so complicated, it is too easy to focus on one thing and be deceived by what sounds like it'd be lower or not...

As much as I've studied taxes over the past two years, I've learned one thing: to keep government services at demanded levels, the government is going to have to get money one way or another. If you don't have an income tax, you'll have to have higher property and sales taxes (as is the case here in Tennessee). If you don't have a sales tax, you'll have to have an income tax and a higher property tax on the local level to meet service demands. If you don't have either - you'll have to have high property taxes like New Hampshire.

When the end of the day comes, however, its best to have a balanced tax system with all three types of taxes levied. Why is it good to have a sales, income, and property tax? For starters - it is more stable. Government gets its fair share, and no one tax has to take up too much. You can keep each of the taxes at a lower rate then just pumping one tax really high.

High property taxes tends to hurt the middle and poorer classes (particularly small business owners). It tends to favor wealth as those who have the ability to pay can pay, yet property taxes aren't nearly as expensive as a high rate-high wage/salary bracket income tax or income taxes on interest and dividend income which predominately is for wealthier people. Very few people in the lower 50 percentile of income brackets has significant investments. And if they do, its not really taxed at a rate that is bothersome (I support progressive taxes, as I've said before on other discussions - so I support low/no dividend taxes on small investments and small time investors).

High sales taxes tends to hurt the middle and poorer classes. Same deal - the sales tax is *THE* premiere regressive tax that can be levied. The poor have the ability to evade most taxation through this method, they only pay on tangible purchases.

But having only an income tax isn't the solution either, even if you taxed incomes over $200,000 at high rates.

On the other end of the scale: the poor and the middle class have more personal power with all taxes in place. If you have a modest sales tax /w no tax on food, clothing, and drugs - then you can purchase more needed items when you are poor. If you have a modest property tax, that puts money into your pocket directly, on top of sales tax savings vs. a state like Tennessee which taxes you at 9.25-9.75% or NH that relies upon the property tax. And with an income tax, a portion of it is deducted from federal taxes, keeping money in the state for local usage - generally a good thing as it lowers state taxes then what would otherwise be needed.

Okay, I'm in one of my tax talk moods. But its good to have a diverse array of taxes. I could go on and on about how this nation has perverted the entire concept of a progressive tax system and the American historic ideal of ability-to-pay.

People today are confused into thinking we have a "progressive" tax system instead of a regressive one because it is bracketed. That is not true. Income of $50,000 is taxed at a rate of nearly 30% in the USA!!!

This is rediculous. That is regressive, even if we have brackets.

Income under $50,000 in this country should be taxed at a rate of 0%. And income over $250,000 should be taxed at a rate such as 40 to 45% (until we get our deficits, debt, and spending under control anyway). Under Bill Clinton's 1993 Economic Reform plan - he raised one tax bracket. Income over $250,000 was taxed at a rate of 39.5%, up from Reagan's "reforms" (i like to call them regressions) to where income over $250,000 was taxed at 30%. It did not keep the economy from creating jobs, and the stock market from roaring. It fixed the deficit - that's how Clinton balanced the budget, plus he put forth budgets that were fairly sound. That is it. No magic about it. Taxing income over $250,000 at 40-45% in 2004 would help pay down these massive deficits we are seeing; cutting taxes on the lower income earners would inject more spending into our economy. Its a recipe that would work. But don't count on Bush implementing it (and damn it I wished Kerry would announce a plan to introduce a 0% bracket for income under $50,000).

Those who have massive wealth (no, not a person with $1 million, but real big wealth) should be paying more then they do today, and those who are in small business and of lower means should not be paying many, if any taxes.

But you know, liberalism is dead on arrival in 2004. Not even John Kerry can say the word without being attacked by the media and everything. So who cares?

[monsoon]

[Scott]

I go to New Hampshire to go to Costco and get gas and to get big ticket items like furniture. If you can haul it away by yourself you can save the sales tax. That $70 on a thousand can be big if its a diamond ring and most things are just generally cheaper overall. The New Hampshire state liquor stores prices are like a duty-free shop.

btw- The tax rate in NH towns is in proportion to its level of services provided. I'd rather give up 5% to have schools and full-time firemen.

[Cotuit]

New Hampshire also has it's fare share of fees to cover for a lack of taxes. Almost every expressway in the state is tolled for instance.

[tocoto]

People equate high taxes to the northeast. In MA, the income tax is only 5%. Sales tax is also 5%, and is not charged for food, clothes, medical and prescriptions. This is actually lower than most states. In NM sales tax is generally over 6% and is charged on everything. Income tax goes as high as 8+%.

[Allan]

In Michigan sales tax is 6%, but it is not charged on food items. The income tax is 4%.

[Cotuit]

People equate high taxes to the northeast. In MA, the income tax is only 5%. Sales tax is also 5%, and is not charged for food, clothes, medical and prescriptions. This is actually lower than most states.

When I moved to NYC, I learned the true meaning of the word "Taxachusetts." Mass. don't got nothing on NYC!

[Scott]

NYC has local taxes! One thing I did notice about NY is that they have tons of traffic enforcment people everywhere keeping the "box" unlocked. I'd pay a local tax in Boston for that level of enforcement as it also makes the streets safer with all that police presence. NYC is big and crazy but in the times that I've been there, I rarely felt unsafe.

[Brickell]

Florida has no income tax and a relatively low sales tax, averages 6-7%.

This works out well because tourists like to buy things, lots of things. Hotel, rental cars and the like are also taxed extra. The no income tax tends to attract a lot of wealthy investors and retirees who claim residency.

[Scott]

Florida and NH both have no capital gains taxes which make them desirable to the retired who are cashing in investments to live off of, like 401k's.

[Cotuit]

NYC has local taxes! One thing I did notice about NY is that they have tons of traffic enforcment people everywhere keeping the "box" unlocked.

New York also does an amazing job clearing snow, with armies of city sanitation workers out on the streets clearing sidwalks and getting those puddles that form in sidewalk ramps taken care of.

New York City and Yonkers have local income taxes. Doing a tax return in New York is mindboggling! I paid to have my taxes done this year as trying to figure out how to file a part year New York City resident return was far beyond my abilities. New York City also has a local sales tax, that's why there are all those malls in Nassau County.