New House bill calls for extra levy on snack foods

Austin American Statesman ^ | Jason Embry

[Cat loving Texan]

Measure seeks hike in general sales tax plus extra charge on baked goods, sodas, chips.

Tuesday, March 08, 2005 Texans would pay more than 10 percent sales tax each time they buy cookies, popcorn, soda or other snack foods if the Legislature approves a revised tax bill passed by a House committee late Monday.

The bill is a new version of the tax-shift legislation that the House Ways and Means Committee passed last week. The committee reworked the bill after Comptroller Carole Keeton Strayhorn's office said it would not raise as much money as House leaders projected.

Under the new version, a 3 percent snack tax — which lawmakers included specifically to target obesity — would be added to the general sales tax charged for those items.

The House bill also raises the general state sales tax from 6.25 percent to 7.25 percent, which would be the highest state rate in the country, and slightly more than what was approved last week.

In addition, the bill calls for businesses to pay a payroll tax of 1.15 percent on each employee's salary, up to $90,000 per worker, which is also a slight increase from last week's proposal.

Ways and Means Committee Chairman Jim Keffer, R-Eastland, said the tax would apply to any worker for whom an employer pays into the unemployment insurance system.

The House is considering the new and increased taxes to pay for a proposed one-third reduction in school property taxes as part of an overhaul of the way Texas pays for public schools.

Strayhorn had said the tax plan approved last week would take in about $1 billion less than what would be needed to pay for that property tax relief.

Keffer said he's confident the new version of the bill addresses Strayhorn's concern, as well as questions her office raised about how the bill should be interpreted.

"We've been working with the comptroller all day long," he said. "We are in agreement."

While some foods are exempt from sales taxes, the ones addressed in the snack tax have not been, he said. The new tax would apply to sales in stores but not restaurants.

Keffer said he expects the bill to come before the full House on Thursday. It will follow a major school reform bill that is up for debate today. The tax bill also calls for increases in the cigarette tax and the sales tax for autos and boats. It would expand the sales tax to cover bottled water, newspapers, billboard advertising and car washes and repairs.

All five Republicans on the committee and one Democrat voted for the revised bill.

Monday's events marked the second time in the last two regular legislative sessions that House Republicans had to tweak a major piece of legislation in a committee after the committee had voted on it.

In 2003, the House Civil Practices Committee had to reconsider a tort reform bill after Democrats complained the bill had been discussed at a meeting that wasn't properly announced in advance.

Also Monday, the head of the Senate Education Committee criticized the House school finance legislation because it does not specify where the state would find more than $3 billion in additional funding over the next two years.

"I think it's very difficult to just say we'll pass all this education reform, but we don't know where the money's coming from," said Sen. Florence Shapiro, R-Plano.

"What if they only find $2 billion in scrubbing the budget instead of $3 billion?"

House Speaker Tom Craddick has said the new money for schools will come from savings in other parts of the state budget.

Some members of the House Appropriations Committee are reviewing the budget to look for ways to save that money.

Through a spokeswoman, House Public Education Committee Chairman Kent Grusendorf said, "I have been assured that when House Bill 2 passes, the money to fund House Bill 2 will be made available."

[Conspiracy Guy]

I'll be cool there. I never think.

[Conspiracy Guy]

What ammendment in the Costitution states the the government is to protect the people from themselves? I can never remember.

[Conspiracy Guy]

Over my dead body!

[Arkie2]

That's not a lifestyle tax unless you consider procreating a lifestyle choice. Gay mens lifestyle choices have costs to society in the form of STD's and Aids. We need to make them help pay societies costs for their unhealthy choices.

That is exactly the same logic used in taxing smoking and junk food. Of course you and I both know these taxes have absolutely no relationship to improving health. They just represent opportunistic asaults on segments of society we've been taught it's OK to stigmatize.

[sasafras]

I can understand the dems for proposing this but I cant understand Rep. voting for this. Oh wait this is the party of McCain and Bush the party of RINOs who enjoy nothing more than taking away our free speech rights and growing govt. It'll probably pass.

[Glenn]

Over my dead body!

You'd be doing the government no good if you died and didn't pay a booze tax. They'll find a way to charm you. (Go #11!)

[RandallFlagg]

Heh! Thanks.
I didn't ask for it. It does mean more money, but my previous experience with having a leadership role means basically this: No matter what anyone else does, it's your fault.
Thank God it's only temporary. These meetings are SOOOO boring.

[Conspiracy Guy]

Sounds like a plan

[CSM]

How can such a red state be taxing itself blue?

[SheLion]

What amendment in the Constitution states the the government is to protect the people from themselves? I can never remember.

There isn't any.  And they think no one knows so they are free to pursue anything they can think of to keep their hands in our pockets.

[Conspiracy Guy]

Yes they would.

[Gabz]

They just represent opportunistic asaults on segments of society we've been taught it's OK to stigmatize.

Exactly.......and one can not do that to the homosexual lifestyle because it is not OK to stigmatize them.

[Conspiracy Guy]

Where does one redeem them?

[Wristpin]

"That's not a lifestyle tax unless you consider procreating a lifestyle choice. Gay mens lifestyle choices have costs to society in the form of STD's and Aids. We need to make them help pay societies costs for their unhealthy choices."

Whatever you do, don't care call it a "Sin Tax" heaven forbid....

[Arkie2]

Bingo.

[ChefKeith]

Please contact your Senator and stop this before they get any farther with it.

Meek we need your ping list here please.

[ChefKeith]

House Speaker Tom Craddick has said the new money for schools will come from savings in other parts of the state budget.

What happened to the "lottery will pay for the schools" ?

F'ing lying politicians!!!!!

[theFIRMbss]

>New House bill calls for extra levy on snack foods

Let me tell you how it will be There's one for you, nineteen for me 'Cause I'm the taxman Yeah, I'm the taxman Should five per cent appear too small Be thankful I don't take it all 'Cause I'm the taxman Yeah, I'm the taxman (if you drive a car, car) - I'll tax the street (if you try to sit, sit) - I'll tax your seat (if you get too cold, cold) - I'll tax the heat (if you take a walk, walk) - I'll tax your feet Taxman! 'Cause I'm the taxman Yeah, I'm the taxman Don't ask me what I want it for (ah-ah, mister Wilson) If you don't want to pay some more (ah-ah, mister heath) 'Cause I'm the taxman Yeah, I'm the taxman Now my advice for those who die (taxman) Declare the pennies on your eyes (taxman) 'Cause I'm the taxman Yeah, I'm the taxman And you're working for no one but me Taxman!

[JOE43270]

America needs to come out and say NO! I'm tired of being taxed to death and paying for all the Government handouts. When they break all of us taxpayers who will give give these communists the money for the handouts. I've been an honest man and paid all my bills every month and paid all the taxes I knew I had to pay. I'm done,I'm tired, and I'm ready for the revolt. I don't like these communists that are trying to control America. God Bless America and all who have lved and defended Her.

[Conspiracy Guy]

It's OK to stigmatize some groups. Such as; smokers, Obese, drinkers, White Males 25 to 55, conservatives, gun owners, Christians, and Jews.

Not OK to stigmatize; illegal aliens, gays, Islamofacists, terrorists, etc...

Keep that straight..