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Thursday, May 28, 2009

Greg Moore: A NH capital gains tax would hit more than the wealthy

Greg Moore writes in the Union Leader about how raising taxes on capital gains will do more than soak the rich:
Capital gains come from good investments. These could be stock options at work, your 401(k) plan or your house that was improved with sweat equity or a new addition. If the risk you take pays off for your retirement, your home or your investment, the capital gain is the difference between the price when you bought and the price when you sold.

The House wants the state to be a silent partner to your successes, taking a portion of your hard-earned investment.
He also examines how taxing success would hurt New Hampshire towns and make the state less competitive:
This new tax would also hurt local communities. A detailed study by the National Bureau of Economic Research shows that capital gains taxes reduce asset values. Thus, an income tax on capital gains would depress sale prices for homes across New Hampshire, which would lower property assessments and reduce the tax base for these communities. Many cities and towns would respond by raising their property tax rates, hurting low- and middle-income homeowners, especially people on fixed incomes, like seniors.

Read the whole thing.

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