Editorials published by the Goffstown Residents
Association are written by various members and
contributing non-members of the GRA.

December 31,, 2009
Flat Taxes in Goffstown

Goffstown residents have to pay what are essentially two flat taxes. The local property tax is a direct flat tax that is assessed on all homeowners regardless of the homeowners’ ability to pay.

There may be the possibility of some immediate tax relief for those homeowners who qualify. Financially stressed homeowners, for a number of reasons, can apply at the Goffstown Town Hall and get some relief on their property tax payments. The property tax “good cause deferral/credit/relief/ 
exemption” does exist (read the back of your tax bill) yet, it is difficult to receive at this time. At least there is a possibility of some relief from the property tax unlike the other flat tax.

The indirect flat tax created by Washington DC, which affects Goffstown residents in many ways, is called price inflation. It is a flat tax in the sense that it affects all people, regardless of their ability to pay, because it causes the price of food, fuel and most things to go up. All people generally need these things to live; therefore, they cannot avoid the tax and that is why it is an indirect flat tax. 

As well as local reasons that contribute to a higher property tax, this inflation flat tax is one of the big reasons that Goffstown property taxes may go up by $3 or more for 2010-2011. 

It is also a clever “stealth” tax that is popular with politicians and a lot of people for several reasons.

  • It is better than raising taxes directly, which causes politicians to be voted out of office.
  • It is better than cutting spending, which causes politicians to be voted out of office.
  • People feel wealthier and are more willing to borrow/spend money when the “price” of their house, stock portfolio and wages (maybe) are “inflated” higher.
  • Politicians enjoy the freedom to “raise the deficit” (which causes price inflation) and spend more for their state so that they will be perceived favorably by the electorate and get re-elected.
  • Banks are ecstatic with the prospect of funding the deficit (loaning the money.)
  • Some greedy wealthy people are ecstatic because they understand (unlike ordinary people) that they also can immediately borrow money to buy an asset which further dilutes the money in circulation causing the price of that purchased asset to go up (by the process of inflation.) The sale of that price-inflated asset is a profit with no work involved. Whoopee! Bring it on!
  • The International Financial Power Structures are ecstatic with the possibility of a deepening “wealth transfer” from another country’s “middle class” to a ruling elite for their unknown ultimate “end-game” agenda.

The problem with all this is that the “stealth” inflation flat tax contributes to the Goffstown property tax rate going up because of budget increases. The solutions to the above are challenging.

  • Cut local spending.
  • Raise local taxes.
  • Change the tax structure to tax, more equitably, those without the ability to pay. 
  • “Jump ugly” (get angry) with Washington DC tax/spending policies.
  • Some measure of all the above.

These taxing and spending subjects should make for an interesting Budget Committee Property Tax presentation on Jan 6th at the high school auditorium at 7:00 PM. Be there!

I just thought that you had a “Right to Know (R2K).”





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