Posted on 03/08/2005 7:37:49 AM PST by 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."
Unbelievable.
The nanny state in Texas! Not content with super taxes on beer and cigarettes, the state now worries about food selections. Next it will be fatty foods and white bread.
I would support an small (single digit) overall VAT (on all goods sold, not just snacks) in return for a 9% flat income tax, removal of all cap gains taxes and abolishment of Alternative Minimum Tax. Failing all that, this sort of thing would suck eggs.
First the smokers, now the eaters. Next?
Any excuse for a new tax! This isn't really about improving health or they would eliminate the tax on healthful food items alongside this tax increase. It's about revenue enhancement and lifestyle taxes are all the rage.
Just like the cigarette tax, this one is regressive since most junkfood eaters, like most cigarette smokers, are low wage earners.
I bet somewhere in that bill it says this tax is for the children, as in: we're doing this to encourage parents to give up snack foods and give their children healthier food.
How about gay men? Their lifestyle certainly isn't healthy. The tax could be imposed at gay bars and for participation in gay pride events.
They won't ammend the franchise taxe loopholes to make all pay but they are putting in a payroll tax (defacto income tax) Furthermore they won't let a constitutional ammendment on casino gambling be kicked out of the legislature and voted up or down by the public. The only positive is that they only meet 140 days every other year.
Do any of these paperpushing pig pen pork barrellers run a business that would have to add another couple layers of paperwork just to keep the doors open? Pretty soon a small retail store will have half a dozen quarterly tax payments to make.
"I bet somewhere in that bill it says this tax is for the children, as in: we're doing this to encourage parents to give up snack foods and give their children healthier food."
The State must give the children healthier food, because Heaven knows that the CHiP's program can only help a few dozen of them now.
They should all be voted out of office. Cut spending, don't raise taxes.
This is discrimination agaist Little Debbie and Laura Lynn.
They say they're trying to target people with eating problems. Won't this just force people to buy less healthy food in order to finance their snack habit?
I notice that the smokers are included too..........no legislature ever misses an opportunity to stick it to the smokers one way or another.
with that said.........this is utterly ridiculous. did these "elected" people ever once think about CUTTING spending?
Oh, c'mon you know what's next. Now put down the beer and walk away from it with your hands in the air. If you want to keep that thing you must pay the mandatory 100% sinners tax!
Well, you certainly won't see taxes on condoms.
But what about- "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."
This is NOTHING but a State Income Tax under a DIFFERENT NAME!
They taxed and outlawed smoking till that Golden Goose died , now they go after snack foods.
Jay Leno could use that joke about these legislators doing it for the obese. What a crock of manure that is.
But what the hell someone has to pay for the hospitalisation of Mexicans coming over to have babies.
Great idea. On the opposite side of the coin, let's tax pregnant women too. Kids cost a lot to raise.
Here go the health police again under the guise to raise money for the schools. Now there is a new class of vices that must be taxed.....chips, popcorn, cookies, candy.
Time to organize a mass automobile drive down to Austin and clog their city up till the legislature cries uncle.
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