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Business tax overhaul gets approval (Funding Texas Education)
Austin American-Statesman ^ | 3 May 2006 | Jason Embry and W. Gardner Selby

Posted on 05/03/2006 6:22:11 AM PDT by Racehorse

The Senate on Tuesday approved a major overhaul of the state's business tax to pay for property tax cuts . . .

. . . [Governor] Perry made it the centerpiece of his effort to raise enough money to cut school property taxes by one-third . . .

[. . .]

The new tax headed to Perry's desk would replace the corporate franchise tax. With a rate as high as 1 percent, it would be based on gross receipts. Businesses could deduct their salaries and benefits or their manufacturing and production costs.

It has riled some conservative activists who say Perry's plan to cut property taxes relies too heavily on businesses at a time when the state could use more of its $8.2 billion surplus to pay for property tax cuts.

"It's a calamity for the Republican Party," said Steven Hotze, a longtime GOP activist . . .

Perry wants the Legislature to cut property taxes for school operations by one-third over two years, saving the owner of a $100,000 home about $425 per year in property taxes. He also is trying to use higher cigarette taxes and money from the state's surplus to replace the money that schools would lose if property taxes were cut.

[. . .]

[Another] measure that the Senate passed would dedicate all of the tax increases in Perry's proposal to paying for property tax cuts until school property tax rates are cut by one-third.

The proposal drew fire from Democrats, some of whom said committing the new tax to replacing property taxes instead of sending it into the state's budget would force the Legislature to raise sales taxes in the near future. Some Democratic senators also say they are worried that the Legislature will not substantially boost education spending or make the school finance system more fair.

(Excerpt) Read more at statesman.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: Texas
KEYWORDS: education; schoolfinancing; taxation; taxes; texas

1 posted on 05/03/2006 6:22:17 AM PDT by Racehorse
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To: Racehorse

If we ever get to a national Fair Tax, you will see other states adopting this or similar tax strategy. Politians, regardless of party affiliation, will tax you!


2 posted on 05/03/2006 6:28:46 AM PDT by moonman (`)
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To: Racehorse

We no longer live in the state of Texas.

I proposed a change in the name of the state to TAXES.


3 posted on 05/03/2006 6:31:11 AM PDT by PetroniDE (We Don't Live in Texas Anymore --- State Name is Now TAXES !!)
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To: PetroniDE
Perry is trying to Californicate Texas, making pretty good progress too.

TT
4 posted on 05/03/2006 6:53:39 AM PDT by TexasTransplant (NEMO ME IMPUNE LACESSET)
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To: Racehorse

I wonder what Kinky would do...


5 posted on 05/03/2006 7:13:20 AM PDT by manic4organic (We won. Get over it.)
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To: Racehorse

Just wondering how many state $ are used to provide benefits for illegals?


6 posted on 05/03/2006 7:20:42 AM PDT by american spirit
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To: Racehorse
It only drops the property tax by 17 cents (to $1.33), and it may drop it to the rates shown in this article next year, but it may not. Plus, there is no guarantee or protection from the rates going right back up to current levels of $1.50. It is more taxes plain and simple in the disguise of lowering property taxes.
7 posted on 05/03/2006 7:23:10 AM PDT by Hendrix
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To: Hendrix

the word "may" doesn't mean **** to a politician. Change it to "doesn't".

Notice they do this AFTER the primaries.

Next comes the state income tax.


8 posted on 05/03/2006 7:33:17 AM PDT by PetroniDE (We Don't Live in Texas Anymore --- State Name is Now TAXES !!)
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To: Racehorse

Already Posted:


http://www.freerepublic.com/focus/f-news/1625835/posts


9 posted on 05/03/2006 7:34:22 AM PDT by TXBSAFH (Proud Dad of Twins, What Does Not Kill You Makes You Stronger!!!!!!)
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To: Racehorse
We now have the distinction of being the only state in the union with this kind of tax.

Talk about a business killer!!

And who wants to bet the rate will stay at 1%. It'll be just like the sales tax......up a quarter of a percent, up a quarter of a percent every time the Education lobby talks about how "underpaid" teachers are.

10 posted on 05/03/2006 7:34:57 AM PDT by Texan
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To: Racehorse
We now have the distinction of being the only state in the union with this kind of tax.

Talk about a business killer!!

And who wants to bet the rate will stay at 1%. It'll be just like the sales tax......up a quarter of a percent, up a quarter of a percent every time the Education lobby talks about how "underpaid" teachers are.

11 posted on 05/03/2006 7:34:57 AM PDT by Texan
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To: TexasTransplant

Perry is a democrat with a R by his mane.


12 posted on 05/03/2006 7:35:12 AM PDT by TXBSAFH (Proud Dad of Twins, What Does Not Kill You Makes You Stronger!!!!!!)
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To: PetroniDE

They have to get a state income tax by the voters. It is prohibited in the state constitution.


13 posted on 05/03/2006 7:36:54 AM PDT by TXBSAFH (Proud Dad of Twins, What Does Not Kill You Makes You Stronger!!!!!!)
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To: TXBSAFH

Get that case in front of some "whack-job" judge, and presto -- State Income Tax !!!

Doesn't matter -- once the illegals get to vote, they will pass one.

obviously, I am very disgruntled right now. I need a wake-up slap.


14 posted on 05/03/2006 7:47:00 AM PDT by PetroniDE (We Don't Live in Texas Anymore --- State Name is Now TAXES !!)
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To: TXBSAFH
Already Posted:

Yep.

Different headline.  Different writers.  Different newspaper. But, yep, pretty much the exact same content.

15 posted on 05/03/2006 9:51:19 AM PDT by Racehorse (Where your treasure is, there will your heart be also.)
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To: Racehorse
Photobucket - Video and Image Hosting
16 posted on 05/03/2006 10:44:49 AM PDT by TXBSAFH (Proud Dad of Twins, What Does Not Kill You Makes You Stronger!!!!!!)
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To: Racehorse

BOHICA!


17 posted on 05/03/2006 2:34:20 PM PDT by El Gato
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To: Texan

Talk about a business killer!!


Perry has his own agenda(business).He's sly like a pit viper and he's collecting up money for his main project of the Trans-Texas Corridor Toll roads system.You can bet money on it.He'll find a way to direct that money to build the massive toll road system with double and tripple taxation and he won't care who he sabotages as long as he achieves what he WANTS.


But ..he's making a good place for himself with the foreign contractor CINTRA-ZACHARY and he'll be set up filthy-rich and he won't have to listen to the voices of Texans' protesting.President Bush backs him 100%. hmmm???


18 posted on 05/07/2006 11:05:07 AM PDT by bobwilgo
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