I have two friends who plan to move to New Hampshire soon. I tell them that there is a 5% tax on their money, so, if they have $1MM in investments and dividends, don't they owe Uncle Sammy something like $50,000 for taxes each year (I am not taking off for write-offs...this is just quicky)? Is it just me? Is my thinking wrong?
Yes, property tax there is supposedly reasonable, no sales tax except like 8% on restaurant food, and that does save money.
Yes, I am not taking into account they went to Dartmouth, love winter, close to Canada & Boston, blah, blah.
I am just looking at this from the point of view of State tax on interest and dividends. Is this not a poor decision, since they seem to want to keep so much of their inherited wealth with them until the end.
One of us is crazy. I hope it is not me for once.