This is a story which is repeated over and over, whenever a new, ‘fairer’ tax is proposed that will magically reduce YOUR burden, while socking it to the evil rich and those greedy corporations. That nagging feeling is your wallet getting lighter because the total tax bill never goes down, there aren’t enough rich people to pay for grandiose schemes, and “other people’s money” runs out, so you end up paying more, of course!
The thing about Socialism and History is that they may not repeat exactly, but they do rhyme. Every mistake in governance and government finance that could possibly be made has been tried somewhere if only we would learn the lessons of history.
How DID New Jersey end up with high property taxes, high income taxes, high business taxes, and a patchwork of taxes on just about everything else? Well, local functions, and local schools, were mostly paid for out of local property taxes, and costs were increased by state level mandates, very much like NH.
Over time, various schemes were tried to centralize collection of some of the patchwork of extra taxes, with a commitment to dole out the proceeds to the towns to reduce property taxes. Of course, the state didn’t pay out the money and property taxes kept going up, so laws were passed fo force payment of inflation adjusted aid to the towns. Eventually, an income tax was added to provide further aid to the towns, but a miracle occurred – as the new source of aid to the towns increased, the state budget magically retained more of the previously committed aid… and the property taxes STILL went up.
Why do I mention NJ? Because generations of politicians promised property tax relief by some kind of financial engineering, but all that ever happened is that the new finance sources came out of the working man’s pocket one way or another, and property taxes always resumed their upward path. Right now, Dems are (again) talking about the unfairness of the NH property tax burden, and how they can fix it – watch your wallet!
The moral of the story is that any time Democrats tell you that you will pay less, if they just raise taxes on those evil rich folks, you can make book on your own costs going up, not down. Welcome to the fleece shop!
Reference: Short History of the NJ Property Tax