Every property owner in Texas already pays property taxes.
And, increasing the exemption effectively lowers the rate.
Just heard a blip on Channel 13 in Houston that Perry said some forbidden word when he thought the microphone was off. Anyone know anything about it?
Every property owner in Texas already pays property taxes.
And, increasing the exemption effectively lowers the rate.
BROADEN THE BASE
-- Keep the homestead exemption where it is -- ideally, eliminate the homestead exemption.
-- Eliminate the appraisal cap.
Yes, increasing the exemption lowers the average rate. Reagan eliminated high exemptions to cut the rate.
Assume there are two tax systems:
System 1. $50,000 exemption; 50% taxation thereafter.
System 2. No exemption; 25% flat rate.
If you earn $100,000, you pay the same average rate -- 25%. But who has more incentive to earn the 100,001st dollar? The systems are not the same. The same goes for property taxes. Gov. Perry is taking us in the wrong direction.
Every property owner in Texas already pays property taxes, but not every resident of Texas owns property.
Property owners currently bear too much of the tax burden. It is an antiquated notion, unrealistic and unfair, that those who own real property must finance public schools for everyone who happens to breathe Texas air.
How to "broaden the base"? Transfer some of the income now derived from property owners to ALL residents of the state. There are plenty of other ways to tax that involve all who benefit from services.