This is a prediction about what I think will happen, not what’s morally correct. People almost always make decisions based on their personal best interest, so a community with a “regressive” tax structure would be really attractive to remote high earners. Most people who work remotely now would pay much less tax if the burden was shared equally, so why wouldn’t they move to a community like that?
You can move to a state with no income tax. But they tend to make it up in other ways. Having a lot of businesses in your community actually decreases your taxes because they can be charged more.
I'm actually curious about the effects of this. Sales and property taxes are nearly always implemented in a regressive manner. Do areas with no income tax but higher sales/property taxes end up having more poor people who are disproportionately hurt by this (as compared to places with income taxes and lower sales/property taxes)? I don't recall ever seeing any research done on this.
