Posted on 04/27/2006 10:15:31 PM PDT by anymouse
In 2003, the State House was faced with a projected budget deficit; however, the then-new Republican majority stuck to Texas’ low tax plan. The biennium ended with a small budget surplus—a testament to low taxes. Republicans are now willing to enact a new tax, despite a $10 billion surplus.
State Republicans are challenged with important questions: what is a fair tax? What is a safe tax? What is a good tax? However, no tax is fair, safe or good. The only true question is: with a $10 billion surplus, why tax more at all?
Texas’ strong economy is due, not in part but in full, to our welcoming tax structure which rewards new job creation. However, the Republican leaderships’ plan to levy a new business tax would pull the welcome mat from under businessmen’s feet. Currently, the franchise tax takes 4.5% of a business’ income. The Texas Tax Reform Commission’s proposal is being sold as a “fair” tax at a low 1%. However, the new plan could end up taxing 5-8% or more of a business’ income—a tax increase. The tax would also be levied even if the business does not turn a profit for the year. The once “fair, broad-based” tax has been carved out in committee by special interests, creating loopholes large enough for the Trans-Texas Corridor. Currently the franchise tax is paid by about one out of ten businesses; at its best, and before the special interest carve-outs, about one in eight businesses would pay under the Perry-Sharp plan. This tax is neither low nor broad-based and is far from fair.
Nearly every year, the Comptroller returns a surplus, meaning that Texans are overtaxed. A yearly and steady buy down of property taxes from surpluses could place all of school maintenance and operation costs into state hands in two decades or less, leaving property taxes low or non-existent and increasing the strength of our economy.
The Governor calls the property tax buy down the “Get Outta Dodge Plan.” However, the plan could best be described as “Get Government Outta My Pocketbook Plan.” The Texas Legislature should not tax Texans more when we have a booming economy and $10 billion surplus.
There are four reasons Republicans have and will vote for this new tax. First, they were told to come to Austin and pass a new tax. These Republicans should take the initiative to keep Texas a safe haven for businesses. Second, they believe that the current franchise tax is unfair. This is entirely true; however, the solution is to abolish the tax, not implement a new one. Economics tell us that businesses do not pay taxes, people do. With the new tax, businesses will be forced to either pass the cost along to the consumer or cut jobs. Third, some Republicans believe that a new tax should be implemented to make up for the lost revenue in property tax reductions. However, they are forgetting the big pile of money in Austin . $10 billion is enough for starting property tax relief. Finally, some Republicans will vote for this tax to ensure that “Governor Perry is reelected,” but politics before principle never creates good policy.
The Senate will take up the new tax plan shortly and then the House must confer with the Senate in a joint conference. It is time that Texans stand up and demand: Don’t Tax Texas Again! It is time we remind our Republican leadership that: Texas does not have a revenue problem; Texas has a spending problem.
Why are they doing this? It makes no sense!
Because they got scammed by lobbyists and a RINO Governor.
State Taxpayer Protection Pledge
Americans for Tax Reform
http://www.atr.org/pledge/state/index.html
: The Taxpayer Protection Pledge was started in 1986 as the first
: project of Americans for Tax Reform.
: The Pledge reads:
: I, ____________, pledge to the taxpayers of the _____ district of the
: State of _________ and to all the people of this state, that I will
: oppose and vote against any and all efforts to increase taxes.
: Signed __________________ Date _____________
: Witness _________________ Witness _______________
Current List of Incumbent State Pledge Signers
http://www.atr.org/content/pdf/2006/apr/041106ot-incumbents.pdf
ping
And people on this board think I am crazy for not voting for Governor Good Hair.
This was distributed at the Denton County GOP Executive Committee meeting last Tuesday night; most there strongly agreeed with it.
I wish we have a Conservative Party instead of a "Republican" Party.
So, are you going to vote for Kinky?
Chris Bell?
The Mouth from Austin?
have = had
Yes it is.
But what if the surplus is only $4 billion next year? Does that mean that my property tax rate has to be adjusted upward to make up for the $6 billion shortfall? Or does how much Texas funds public schools depend on the size of the surplus?
And, the Texas legislature only meets every two years. Would special sessions be required every other year to deal with school funding?
Business franchise taxes are discretionary, to me. If I use the service of a business, I pay the tax. If I don't, I don't.
I don't have any choice on property taxes, which is why I want that 30% reduction.
Well it is _discretionary_ whether or not businesses keep doing business in Texas.
Unless you are a government employee, retired or independently weathy, then whether you have a job is _discretionary_.
And if these taxes drive away businesses and take all of those jobs elsewhere with them, then the value of your property is "discretionary" as a glut of homes hit the market with nobody being able to afford to buy them.
And if there are no businesses left in Texas and no property owners or smokers left to pay taxes, then even these temporarily lower property taxes will have to be _discretionary_ raised to make up for the short fall.
And if there isn't enough Texans left to pay those taxes then it will be _discretionary_ as to how many government employees, students and pensioners the government can afford to support.
Taxes matter - even to those who don't pay any.
So is your solution to rely on surpluses to fund education? Property taxes can no longer be the exclusive source for education revenue, by order of the Texas Supreme Court.
Using the surplus is a short term solution to the school funding issue. When the surplus dries up, we'll be once again looking at a way to finance schools.
Apparently you are buying into the nonsense that not enough is spent on education or the government in general. When the government starts making a fraction of the sacrifices it demands of the taxpayers, then we'll give a damn about what they want.
Thanks for your totally unserious response.
The illegal immigration debate has done something to the water around here.
Well maybe you should go try to get your water down on the Rio Grande.
Maybe you should come up with something that will work in terms of funding schools, instead of pie-in-the-sky stuff that no legislator will support.
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