"I think most people believe that an income tax would make wealthy people pay more and low-income people pay less. This is not necessarily true at all. NH's only progressive tax is its Interest and Dividends income tax. I pay that tax and I believe that we should keep it. A graduated tax on earned income would require a Constitutional amendment. Hence, any income tax on earned income would have to be a flat tax. We could put in a floor so that low-income people would not pay anything, however, that would raise taxes for everyone else. The income tax idea is complicated by the fact that businesses pay about 43% of property taxes, so if we cut property taxes, workers would also have to make up that $1.6 bil in income tax, meaning we would have to collect more from workers. Some people propose that Social Security not be taxed. If that were the case, once again that would bump up the tax for workers. Since the number of working people in NH has been dropping (the only New England state losing workforce), that means fewer and fewer people would be paying income tax. And those are the very people we're trying to attract to the state to provide workforce for our companies, who currently can't grow because they have too few workers! However, on the other side, NH residents are now paying taxes to MA and other states, on perhaps as much as 30% of all the gross wages earned by NH residents! If we had a typical reciprocal state income tax agreement with those states, we would be gaining free money from MA, as a result, which would cost MA-workers nothing! Would this balance the $1.6 bil we'd be losing from NH commercial real estate? We would need to model this. Regardless, the winners in a switch from property tax to income tax would be: businesses, landlords, out-of-state property owners and those living in high-tax towns. Unless special rules were made to lower income taxes for certain groups at the expense of other groups, the losers would be renters and people in low-property-tax towns. Meanwhile, the very wealthy would just switch their permanent residence to FL or another no-income-tax state. So we would need to model all this and weigh the advantages and disadvantage publicly so people could decide whether this is a good idea or not."
Source: Citizens Count Issue Survey 2018