Once again, in the 2021 Cato Institute rankings of personal and economic freedom, Freedom in the 50 States, New Hampshire is ranked as the freest of the United States. Canada’s Fraser Institute gives New Hampshire the same freest state ranking. The state’s famous motto, “Live Free or Die,” is prominently imprinted on residents’ license plates.
When I share that New Hampshire has neither a sales tax nor income tax, I am often met with incredulous looks, a pregnant pause, and then the inevitable question: “But, how does the State get its money?” For some, it is self-evident that a large government is necessary to run a modern and prosperous society. New Hampshire should give pause to those who believe the big-government-is-necessary argument.