Shapiro: State income tax may be considered (TX-pledge was only binding during last session)

zwire.com ^

[chance33_98]

Shapiro: State income tax may be considered

By BRENT FLYNN , STAFF WRITER 10/17/2003

State Sen. Florence Shapiro told potential voters on Monday that everything will be on the table during a special session on school finance to be conducted in the spring, including a state income tax.

"Nobody said we won't consider a state income tax," said Shapiro, R-Plano. "It will be on the table."

Shapiro, chairwoman of the Senate Education Committee, made the statement to people who attended a panel discussion on school finance sponsored by the Texas Parent Teacher Association, Texas Education Crisis Coalition and the League of Women Voters of Richardson, Plano/Collin County, Dallas and Irving.

Everyone on the panel, which included Federal Reserve Bank of Dallas economist Jason Saving, Dallas Independent School District Superintendent Mike Moses and Richardson ISD Board Member Anne Barb, agreed that public education is underfunded by the state and the current school finance system needs to be changed.

Saving said the so-called "Robin Hood" system has resulted in an increase in equity of resources between rich and poor school districts during a period of rising student achievement across the board.

However, he noted that not only is the current system unfair to districts with more property - called Chapter 41 districts for that section of the law - by forcing them to pay an increasingly higher percentage of their property taxes to property poor districts, it creates a disincentive for districts to improve because any increase in their property tax base would mean less state funding for poorer districts and higher recapture payments for wealthier districts.

Saving, who considers himself conservative, said he has run the numbers every way possible and come up with the same conclusion.

"We need more money from somebody than we're getting right now and that's not going to be entertaining to watch in the Legislature," he said. "There will have to be higher taxes somewhere to get the extra money."

When asked how that money would be produced considering many legislators now in office campaigned on a platform of "no new taxes."

But Shapiro argued that pledge was only binding during the last legislative session. "The issue of no new taxes was specific to last session," she said. "That didn't mean we wouldn't raise taxes in the next session."

State Rep. Jodie Laubenberg, R-Parker, believes a state income tax will not be considered but that other proposals are possible.

Among them is expanded business taxes.

"There are lots of businesses in Texas that pay no taxes," said Shapiro. "We will be looking closely at every businesses' exemptions."

Saving said a modernization of the tax code is long overdue, not just for education but also to address how the state pays for all of its government services.

The challenge, he cautioned, is not to lose what has made Texas an attractive destination for talented professionals and multi-billion dollar corporations, namely, low taxes.

"We seem to be operating under the assumption that 100 percent of the new revenue must come from taxes," he said. "If the most important thing is education, then we should also be looking at cuts in other areas. That will lessen the extent to which we raise taxes."

Shapiro said she expects a special session on school finance in April or May of next year.

[Scenic Sounds]

It can when I'm the one ringing it. :-)

ROFL. I'm gonna ask you to just trust her on that one, Gary. ;-)

[sinkspur]

Lots of state spending (such as Medicaid) is MANDATED to increase every year.

How did the legislature deal with, according to your own post, "a $10 billion budget crisis"?

They cut, and you know it.

[Cathryn Crawford]

ROFL. I'm gonna ask you to just trust her on that one, Gary. ;-)

Always a wise idea. ;-)

[gcruse]

LOL They tolled me so!

[HostileTerritory]

The population of Texas has increased by far more than 1.5% in those two years, and we all know how health care costs (a big chunk of state spending) outpace inflation by several percentage points.

[Rome2000]

But Shapiro argued that pledge was only binding during the last legislative session. "The issue of no new taxes was specific to last session," she said. "That didn't mean we wouldn't raise taxes in the next session."

The state GOP needs to smack this sick bitch down quick.

[deport]

Dawg be gone now.... You'll have to wait for him to sign back in under another alias...

I think this state Income Tax thing is a stalking horse only. Look for fees, video gaming, etc as some of the other sources..... Also I don't think the voters will approve a statewide referendum to allow a state income tax...

[Scenic Sounds]

LOL They tolled me so!

ROFL. Perfect!! ;-)

[enviros_kill]

Excerpt from a letter I sent to Gov. Perry in June 2003:

"... No income tax for Texas
Please remember that an income tax must forever remain out of the question for Texas. Recent attempts by the governor and legislature of Tennessee to pass an income tax met with defeat in 2001 and 2002. A Wall Street Journal article (Reference 1) summarizes this citizen victory and the unseating of several legislators. Attempts at passing an income tax in Texas would only bring similar results."

http://www.opinionjournal.com/forms/printThis.html?id=110002098

Has the liberal media in TX EVER mentioned the defeat of a twice proposed TN income tax?

I witnessed the passage of a state income tax in CT in 1991. AFTER the vote (that passed at 3:00 AM in the morning), we demonstrated on the lawn of the capital in Hartford and hung the Gov. (Weicker-RINO) in effigy, constructed tanks out of plywood pointed at the capitol-all to no avail as the damage was done. Once passed it will NEVER go away and will ONLY get higher. CT raised the state income tax rate in 2003.

There MUST be total opposition to any form of state income tax in Texas.



If this TX

[RiflemanSharpe]

Get a Rope.

[american spirit]

My opinion is their nothing but a bunch of liars playing their usual shell game. If there was just a way to decipher these CAFR's....Comprehensive Annual Fin'l Reports at the local and state level I truly believe there would be no need for any new taxes because it would be pretty clear Texas is awash in surplus funds.

[zeugma]

They and Perry just cut ten billion. The Social Services people are screaming about the handicapped kids being dropped from some services.
I don't know how much more there is to cut.

I figure about $70B or so. I want the dolists to be screaming in the street.

[sinkspur]

Also I don't think the voters will approve a statewide referendum to allow a state income tax...

Oh, I don't either. I talked to Senator Jane Nelson at a fund-raiser two weeks ago, and she said there would likely be business tax "adjustments." Of course, that means higher prices for all of us on certain goods and services.

I live in one of those "Robin Hood" districts that is being sucked dry. But, this year we reach our limit, and school services will have to be cut to stay within budget.

[RichardW]

I moved to Texas from Missouri that had a state income tax. Our sales taxes are higher and our property taxes are double. As much as I didsliked the income tax, I would support this move. We're paying just as much as we did in Missouri and we pay an extra 2% everytime we buy non-grocery items. And our home owner's insurance rates are at least twice what we paid in Missouri.

As they say, there is no free lunch.

[mtbopfuyn]

What??? Anyone who signs on to taxing Texans will NOT have my vote. School's are underfunded, my great aunt Fanny! I just got my property tax Wednesday and am still having palpitations. The school tax alone amounts to 1 1/2 times our monthly takehome pay. That, friends, is for an old 1600 sq ft house on a 60 foot lot. I can't afford to move and I can't afford the taxes. And now they want a state income tax on top of that??? What's the chances I could do better by going to Mexico, get Mexican citizenship, and return as an illegal alien?

[SauronOfMordor]

However, he noted that not only is the current system unfair to districts with more property - called Chapter 41 districts for that section of the law - by forcing them to pay an increasingly higher percentage of their property taxes to property poor districts

So a percentage of property taxes in middle-class districts funds schools in poor districts. What happens if the middle-class districts just cut taxes to equalize their school funding with the poor districts, and tell parents to make up the difference directly (having students buy their own texts)? That way, more money stays in the district.

[justlurking]

Time to primary Shapiro.......

It won't help.

You have to understand where Shapiro is coming from. The "Robin Hood" property tax transfer is killing Plano and the surrounding areas that Shapiro represents.

The state is redistributing so much of the property taxes collected in Plano, that Plano doesn't have enough money to fund their own schools (which are still filling up with students).

A few years ago, Plano hit the state-mandated cap on property taxes -- i.e. they couldn't be raised any higher to make up the shortfall caused by the redistribution to other school districts. There was some legislation proposed in 2001 to address the problem, but I lost track of what happened.

[Centurion2000]

"Nobody said we won't consider a state income tax," said Shapiro, R-Plano. "It will be on the table."

Hope he enjoyed his political career in Texas because it just ended.

[Centurion2000]

I moved to Texas from Missouri that had a state income tax. Our sales taxes are higher and our property taxes are double. As much as I didsliked the income tax, I would support this move.

Who cares ... go back to Mo. if you want to pay a state income tax. We do not care how you did it up north sir.