[Texas] Governor proposes largest property tax cut in history

TexasInsider.org ^ | June 21, 2005

[Constitutionalist Conservative]

Today, Governor Perry proposed a solution to the recent tax trials of the Texas legislature; a plan which will deliver the largest property tax cut in history to the hardworking people of Texas.

Perry’s plan, if adopted, will result in a net Tax Cut of $300 million for the people of Texas, while providing a solution to the school finance reform dilemma.The measure will serve taxpayers, while providing historic funding increase for schools.

In order to facilitate the tax cut, Perry has proposed a close in franchise tax loopholes, leading to a more widely shouldered business tax. In addition, his plan would increase the sales tax rate by 7/10 of a percent – to 6.95%, and increase the cigarette tax by $1.

Perry’s plan, which may prove to represent a significant compromise between earlier House and Senate proposals:

• Increases homestead exemption $7,500 starting in 2007 (from $15,000 to $22,500)
• Cuts property tax rate to $1.20 by 2007 (the equivalent of $1.15 with $7,500 increase in homestead exemption).
• Caps rate at $1.05 by 2010 (equivalent of $1.00 with $7,500 homestead exemption.)
• Consumer/Business Tax ratio remains essentially unchanged
• Gives teachers $1,500 pay raise
• Textbooks in warehouses go the classroom
• Funds Reforms and education technology
• Truth in Taxation rollback provisions
• Limits local enrichment to 2¢ per year, capped at 12¢

With the Texas Supreme Court decision on several key school finance cases on the horizon, the manner in which the Texas legislature addresses the current problems in the system could control the fate of millions of Texas school children.Perry’s plan, which comes on the heels of a three-week legislative break, may provide a good starting point for successful negotiations between House and Senate leaders.

[Proud_texan]

Yeah, a .7% increase in sales tax will be bumping some areas into the 10% range. That's a lot of sales tax....

[SolidSupplySide]

I can't control my valuation.

Sure you do. You can always buy a bigger or smaller house. As a supply sider, I want the tax code to have the smallest impact on my economic decision making. If the tax code causes me to change my decision making, it creates a "deadweight loss". That's what Gov. Perry is creating here, a "deadweight loss".

[Dog Gone]

That cigarette tax increase is going to not work out. It may be good that it encourages more people to quit, but then they also quit paying that tax.

[packrat35]

Well I am from TN and we already pay 9.5% sales tax.

[Proud_texan]

It's a bit harder to move than it is to change jobs not to mention expensive, just don't see it as nearly the same as electing to work/not work overtime or selling/not selling stock.

However I suspect we can both agree that either one of us could very easily find the money to make the property tax cut and fund education without any other changes to taxes. Seeing as how these fellas don't seem to be able to cut squat it looks like they've decided they'll do the two step here and the turkey trot over there and not do anything serious.

[Proud_texan]

We'll be there...soon.

Hope your property taxes aren't as bad as ours.

[Texas Federalist]

Pack up everyone! We movin to Texas!

Don't get too excited. The purpose of the property tax cut is to increase funding for education, i.e. raise taxes. To diffuse opposition they raise hidden taxes while cutting a visible tax and sell it as a wash. The phrase, "Don't piss on my head and tell me it's raining" comes to mind.

[stopem]

All right now your talking, hey want to buy a house for $900,000 just like Kalifornia.

[SolidSupplySide]

It's a bit harder to move than it is to change jobs

All it takes is people making decisions at the margin to change property values. And then it affects you.

A lot of people didn't work any harder in the 1980s after Reagan's tax cuts. But at the margin, there was huge new effort and the economy expanded greatly.

[bayourod]

"Adios, Mo Fo"

It came after an interview about school finance. It was directed in jest to his aide.

[Mark]

And in L.A., CA the Dems see a huge gain from increased property value and they do as all Dems do-- they updated their budget and spending it all.

[TexasTransplant]

It is a CROCK!

#1 Perry along with everyone else in the World knows Property values are UP, so he has a window that he can Lower Property Tax Rates, and next month the Appraisers will raise Property values and the amount of Property Tax paid will be MORE, at the same time Sales Tax will increase, dramatically.

End Result Higher Property Taxes, Higher Sales Taxes and NOT ONE SINGLE CUT IN SPENDING.

Next year Property Taxes will go up to current rates along with City and County increases because of the illusion of MSM spreading a Tax Cut LIE.

This is a simple SCAM that should be old news, how many times can people fall for the same SCAMS, Politicians learned well from the MAFIA, and today Politicians and Mafia are separated by little more than Title.

[SolidSupplySide]

It amazes me how many self-described conservatives do not believe in Ronald Reagan's philosophy of "Broaden the base, Lower the rate."

[TexasTransplant]

>>>" In addition, his plan would increase the sales tax rate by 7/10 of a percent – to 6.95%"<<<

TRY 8.95%, today it is 8.25%

[Ben Chad]

You got that right. This is a wolf disguised as a sheep.

[packrat35]

We have no state property taxes that I know of, however I pay city & county taxes which increased again this year of closed to $900.

[MeekOneGOP]

Texas Governor proposes largest property tax cut in history

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[TexasTransplant]

Re-Read my Post, it is a Bait and Switch, Property values will be reassessed and current Rates will return within a year, the State will not and does not have control over Property Taxes.

It amazes me how many self described Conservatives don't understand "CUT SPENDING" and the first and BIGGEST CUT should be to Government Education (TEACHERS UNIONS), get Government out of Education and you can cut your State Budget 50% - 75%.

[Flyer]

increase the cigarette tax by $1.

Raise the cigarette tax and I will employ every method possible to evade this tax, all without quiting smoking. I'm tired of getting kicked in the face because my vice isn't politically correct.

[packrat35]

I don't blame you a bit, and I don't smoke. I joking call smokers the "new lepers" of society. But they sure want your money to pay the bills.