Property taxes are gaining attention all across the country, all of a sudden. Many people, in myriad states, are reporting exceptional increases in their assessments and taxes over the past several years, after a decade or more of modest increases. In many states, and for many people, the situation is dire.
NH is not alone in this. Our houses are less affordable (relative to median income) than most states, and more of the tax burden falls on property here than elsewhere. However, our general affluence softens the blow. High-income earners are attracted to New Hampshire, whose property taxes are low by comparison to a typical New England income tax (FYI that’s not why I came here 25 years ago, and I have an interesting personal story about tax honesty). These days, most high-income earners have careers in finance, technology and medicine, which creates both a narrower tax base and a narrower cultural conversation. Nothing against those professions – I cut my intellectual teeth in finance. But I would not want to spend most of my time with any one professional group. We learn and improve ourselves by realizing how much we do not know. I learned that from Socrates.
The compounding challenge of high property prices (let’s not call them values) and taxes is felt acutely here in New Hampshire, especially among young people seeking to purchase a home, and older people living on fixed incomes. But let’s not fool ourselves that they’re the only ones struggling. Anyone who seeks to rent will have it even worse, if landlords (who become unwitting Lords of this system) pass on the rising costs of house purchase, property tax assessments, and insurance, onto their tenants. Before you know it, any chance for diversity – whether it be racial, economic, cultural or intellectual – disappears. We forget that a vital society is created by those who produce intrinsic wealth: food, essential tools, care for community, earnest labor, generosity, natural health, insight and inspiration. Yes, improved processes, thoughtful engineering of operations, computational mastery and intellectual rigor are undeniably valuable. However, when those skills are devoted to rearranging the pieces on a chessboard – or worse, extractive enrichment – no one gains, except the “winner.” The rest of us become pawns, at best.
Fortunately, a tradition of fiscal prudence on the part of our state government and residents – along with this being a relatively wealthy populace – has mitigated some of the irresponsibility and abusive tax practices seen in other states, whether “red” or “blue.” We do not have as many unpayable debts as other states or our federal government. I do not consider that cause for celebration; it’s a barely passing grade. It does not mean we have struck the right balance of freedom and fairness. How do I know that? Because even those who have enough are struggling, disillusioned and/or disappointed, amid our apparent prosperity. So what is actually going on here?
To be continued –
