Newmarket Democratic Rep. Ellen Read’s initial legislative proposal to create an income tax for the wealthy and a sales tax on certain luxury goods drew criticism Monday from Democratic and Republican legislative leaders.

Republicans frequently use the suggestion of any new taxes as a cudgel against anyone who would propose such a thing in New Hampshire, which has some of the highest property tax rates in the country but lacks an overall income or sales tax.

But this time House Democratic Leader Alexis Simpson, D-Exeter, also got on the bandwagon.

“As I have said repeatedly, an income tax is not part of the House Democrats’ agenda,” she said. “Granite Staters do not want an income tax, period. People want affordability, not a new broad-based tax.”

In an interview Monday afternoon, Read stressed that New Hampshire’s tax system relies too heavily on property owners, which taxes people out of their homes and drives up rents.

She said some of the revenue from her proposal would go toward lowering property taxes, while other dollars would go toward public health and lowering housing costs.

“This would be a high-end income tax, so it would only be on income earners well into the six figures,” she said. “That and the luxury item sales tax would still be below all neighboring states and certainly Canada, so we would still be competitive. We would still have the Granite State Advantage.”

“I absolutely believe in progressive tax structures and I don’t believe in taxing people out of their ability to live in a house.”

Senate Majority Leader Regina Birdsell, R-Hampstead, immediately criticized the proposed legislation.

“We all knew it was coming, but when you see it in print, it is just all the more shocking,” Birdsell said in a news release.

“The Democrats not only filed legislation to establish an income tax, but also a sales tax all in one bill. I would commend them for their efficiency if they weren’t trying to efficiently destroy our state.”

Read’s proposal came as a legislative service request, or LSR, a precursor to a detailed bill.

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