(Texas) House Tax Bill Draws Fire from Voter Base

TexasInsider.org ^ | 3/10/05 | Gina Jacobs

[SwinneySwitch]

"Republicans statewide are growing increasingly concerned at the threat of fiscally liberal behavior from the legislators they elected as conservatives."

Is it the Austin water or what?

[SwinneySwitch]

Texas Grassroots Ping!

[Wneighbor]

Is it the Austin water or what?

Gotta be. This is revolting.

[DesertSapper]

I and some coworkers called our reps yesterday and registered our opposition.

Rep Solomon's assistant told me he was "on the floor already" but that she was sending him text messages updating him on a running total she was keeping. She also said she was receiving lots of calls against HB3.

Here's hoping we kill this attempt to create a TX income tax disguised as a "payroll" tax.

Someone please tell me again that the Republican party is the party for lower taxes . . . I seem to remember believing that once-upon-a-time.

[Aggie Mama]

This is good news. Apparently, the owner of 700 AM in Houston was for the business payroll tax in lieu of property taxes. I wasn't able to listen to that station before, but I really will make an effort to tune it out now.

[PureTrouble]

Yes, Texas does not have a state income tax. But because it doesn't property taxes and other taxes are used to fill the states coffers.

So, when you retire and your income is a little more limited, you could still be paying the same taxes (tax levels) as you were while you were working.

Income tax is not a bad thing as long as the other taxes get reduced such as property and sales taxes get reduced.

I guess I am neither for or against income tax, but since I am looking closer and closer to retirement, I am looking at where my money will go when I retire.

[SpottedBeaver]

I'm going to call my reps today. Mine are Sam Johnson and Florence Shapiro.

If any Texas FReepers need to find out who their Reps are, you can find out here: http://www.capitol.state.tx.us/fyi/fyi.htm.

[Racehorse]

This just in from your favorite newspaper, The Austin American Statesman:

Tax bill delayed
House adjourns without overhauling tax code

Speaker Tom Craddick gave up his effort to pass a tax bill this week.

"There's so much confusion,"Craddick said. "I don't want anybody to vote on something they don't understand."

The announcement wrapped up a morning dominated by inactivity. The House convened at 9 a.m., then almost immediately broke for recess so members could grill the bill's authors and Legislative Budget Board staffers about it. The proposed changes to the bill that caused confusion would give businesses the option of either paying a new payroll tax or the existing franchise tax, which many businesses are now legally able to avoid.

The decision also put off what many expected to be a very long evening. Having tried to pass the tax bill Thursday, it was far from clear that the House would be able to wrap it up tonight.

The House did meet long enough to approve House Bill 2, the school finance bill, on its final reading. That sends it to a very uncertain fate in the Senate.

[Wneighbor]

The first I'd heard of this was on WBAP this morning. If it was discussed earlier in the week then I missed it but didn't know anything till today. Will be contacting Orr's office ASAP

[DesertSapper]

The Texas Constitution does not allow our state government to create an income tax - it is explicitly a no-no.

These so-called Republicans are pushing exactly that - an income tax wearing a payroll tax costume. Many studies show that a payroll/income tax is the most inefficient, punitive, and business stifling revenue source for any government.

Retirement income wouldn't be taxed as you said, but how would that in any way balance the loss of income during your working years? I'm not willing to shoulder another tax just because someone thought it genious to tax us before it actually hits our paychecks.

Never, ever believe that the creation of ANY new tax can be offset by lowering an existing tax. If this happens, you now have given them yet another tool to extract more of your money in the future. Taxes may occasionally fluctuate in our favor but will never be repealed.

No tax is justified if you cannot justify everything it funds. Stop the vampires.

[Redbob]

"One clause of the resolution criticized the payroll tax, saying, “adoption of a payroll tax is truly an income tax which would adversely impact business owners, their employees with an expected loss of jobs, and consumers who would pay the tax through increased prices on goods and services.”
Another clause pointed out that, “an increase in the state Sales Tax will make Texas the state with the highest Sales Tax in the nation.”

Go Shirley!

I'm proud to count Mrs. Spellerberg as a friend!
(And she's also Denton County's staunchest supporter of the Second Amendment - don't mess with her!)

[SwinneySwitch]

"I wasn't able to listen to that station before, but I really will make an effort to tune it out now."

A lot like me and the french Riveria and paris Air Show!;^)

[TexanByBirth]

Has nothing to do with the water in Austin...but everything to do with lazy politicians who take the easy way out....

Everyone agrees Robin Hood was bad and had to be fixed.....
Everyone agrees property taxes are too high......

What these lazy politicians won't do is bit the bullet and tell some of these "underfunded" school district....I'm sorry you need to consolidate with another district......

Of course nothing the legislature does will matter, because some group somewhere (school district, tax group, or Democrats) will find a judge who will declare the whole thing unconstitutional and we will be back to square one....

I for one am sick and tired of politicians that (1) are afraid to do their job and (2) whose solution to everything is just add another tax....

Sorry for the rant....I feel better know

[PureTrouble]

I did say in my post that:

Income tax is not a bad thing as long as the other taxes get reduced such as property and sales taxes get reduced.

.. my point was that if you have a house and retire in Texas, your tax burden stays the same or goes up as property tax increases and increases to the estimated value of your house goes up over time. Even though you don't have that income after you retire. In most states, when you loose the income the state looses your income tax hence your tax burden has been reduced.

In Texas, not having a state income tax will hurt you when you retire if you stay in Texas. Again, If they tax me less somewhere else then income tax is OK. But if they are just adding another tax then I vote no.

[Redbob]

""There's so much confusion,"Craddick said. "I don't want anybody to vote on something they don't understand."

Maybe the legislators you work with don't understand it, Tommy, but the rest of us understand it just fine - and WE think it stinks to high heaven!

[Redbob]

Taxes aren't too high:

THE STATE JUST SPENDS TOO MUCH!

There; thank you for letting me get that off my chest.

[ken21]

both republicans and democrats like to spend tax monies.

read the history of the 1890's and the republicans spent, spent, and spent....

[Redbob]

"In Texas, not having a state income tax will hurt you when you retire if you stay in Texas."

LOL!
You're maybe thinking you'd be better off in some place like Michigan that HAS an income tax?

AND confiscatory property taxes?

Or maybe some place like Oklahoma, with a big income tax, no property taxes to speak of - and also no "infrastructure" to speak of: i.e., terrible roads, terrible schools, terrible hospitals, etc.?

[Racehorse]

In Texas, not having a state income tax will hurt you when you retire if you stay in Texas. Again, If they tax me less somewhere else then income tax is OK. But if they are just adding another tax then I vote no.

I don't think anyone has posted anything about the other hidden taxes dished out by every conceivable level of Texas government:  licenses and fees.  Fishing licenses, driver licenses, hunting licenses, camping fees, even municipal green fees.  Pick your favorite activity, somewhere there's probably an increasingly costly fee or license attached to it. I imagine politician's will continue using licenses and fees to generate revenue, even if an income tax is shoved down our throats.

[TexanByBirth]

Depends on where you live....

If you live in Austin, like I did for 11 years, you saw your mortgage increase every year...It was because property taxes and school taxes went up every year....not to mention the cost of insurance went up each year...Thank you, trial lawyers!

When we moved to East Texas two years ago, the property taxes were lower on our new home....Well guess what!...This past year the taxes jumped by almost 400 dollars...The reason: home values go up, therefore property taxes go up...On top of that the crappy local school district raised their taxes as well...

I agree the state government still has too much wasteful spending...but our useless legislators have got to do something about property taxes and school financing without raising taxes elsewhere....Luxury taxes are stupid and a payroll tax is nothing more than a income tax by another name.