I somewhat agree. By no means do I think NH has the perfect system. However I also do not think what we have is horrible. I see where you are coming form with the income tax vs. the large property tax that NH has.
I do agree that it could use some changes and most things in government I feel should be looked at with an open mind and drastically changed, however I feel this is not likely to happen any time soon as this countries way of governing seems slow to change and always one step behind and one step too slow.
We address issues once they become problems rather than prior to them becoming problems. Good example would be transit and environmental issues.
Sounds like we're not in such disagreement as I had thought. It's true that no system is perfect, but a lot of people in New Hampshire--and a majority in the current legislature--like to think and say the system in New Hampshire is. Your point that the state (and plenty of other places) addresses issues once they become a problem is proof that the New Hampshire tax system is not perfect.
I don't know enough about tax policy to say what a good system would be, but like anything else, I think diversification is good. A modest (~5%) income tax, possibly with a higher rate for the highest-income earners coupled with reduced property taxes and maybe even a sales tax on especially big-ticket items (say cars, etc), for instance. That's just one example.
New Hampshire, like several other states, does not allow the gas tax to be used for non-highway expenses. This is an idiotic, seventy-year, constitutional policy that will be difficult to change, but the tax (already the lowest in New England) could be raised to encourage carpooling and public transit. I believe the tax can be used to fund buses, but I'm not positive.
Another big problem in New Hampshire is the variability of taxes from town to town. Because so much of a town's (and the state's) revenue comes from property taxes, you have neighboring communities competing to attract development, and basically selling out to the highest bidder. This leads to redundant sprawl, green space development, and more big box stores. I'd love to see some sort of metropolitan organization (say SNHPC) be given more control over regional planning and taxes. The system would be complicated and there would certainly be resistance in favor of local control, but working out a system of shared planning, revenues and expenses would allow for smarter growth without towns having to give up revenues. I have no idea how feasible such a system would be.
There's
an interesting, allegorical opinion piece in yesterday's Concord Monitor about New Hampshire's dysfunctional obsession with cutting already absurdly low taxes.
You might also be interested to read some stuff from the group,
Granite State Fair Tax Coalition, which favors a more equitable and reliable tax structure.