Dear Bill,
In the Valley Patriot article authored by Chuck, he talks about New Hampshire being able to do just fine without a state income tax. Are they?
I had a long talk with my sister who moved to New Hampshire nearly three decades ago, because as newlyweds, she and her husband could not afford to buy a house in Massachusetts. They are both nurses working in Massachusetts.
To this day, they would move to Massachusetts in a heartbeat, if they could afford it. Even with the cost of gas [one commutes to Medford, the other commutes to Boston], and the cost of more frequent maintenance and replacement of cars because of the enormous wear and tear on their vehicles, even with the cost of paying Massachusetts income tax on both of their salaries, they wish they'd been able to raise their children here.
She may not pay New Hampshire state income tax or sales tax, but she pays through the nose just the same. And she has far fewer and inferior services to show for it. Mind you, she lives in one of the more affluent communities, but her tax bill includes assessments for state improvements, county taxes, and school taxes, all of which can rise at will because there's no cap like our prop. 2 1/2. There is no such thing in her town as trash pick up or water and sewer. They have a predominently volunteer police and fire department. Most of the roads are state-owned, so they're at the mercy of the state when maintenance and repairs are needed. And there are few jobs; those jobs that exist pay far less than Massachusetts jobs, even after factoring out the afore-mentioned costs of living in New Hampshire and working in Massachusetts.
Oh, did I mention schools? No public kindergarten. Her town didn't even have a high school until my niece was in her sophomore year. Quality? Nothing that compares to Massachusetts schools.
State and Municipal Services don't come free. And the absence of a state income tax does not mean it costs less to live there or that the quality of life is better there.
I came across a great explanation of comparing state taxes at
http://www.retirementliving.com/RLtaxes.html
Also, section v, page 13 of the Massachusetts Taxpayers Foundation report, The Enormous Consequences of Question 1, gives a good comparison. You can read the report at
http://www.masstaxpayers.org/files/MTF_Question1_Analysis.pdf
Sincerely,
Sandy Gleed