Perry signs business tax bill into law [TEXAS]

Associated Press ^ | May 18, 2006 | ANABELLE GARAY

[Dubya]

IRVING — Republican Gov. Rick Perry signed into law today legislation that restructures the state business tax to help pay for public schools and accompanies a major property tax cut.

The measure is a major component of Perry's plan to revamp the way Texas pays for public education before a court-ordered deadline of June 1. The new law will help deliver a record $15.7 billion property tax reduction over three years, Perry said.

"It is the largest of its kind in America and significantly reduces the impact of Robin Hood," he said, referring to a state system that distributes some money from wealthy districts to poorer ones.

The measure is one of five school-finance bills passed during a 29-day special session that adjourned Monday.

"Our entire school finance plan will lead to better schools, a stronger economy and a better future," he said before signing the bill.

The law establishes a $3.4 billion tax expansion for next year and changes the state's business tax so more companies have to pay it.

Perry praised the law as a reliable source of funding for schools and fairer to employers than the previous loophole-ridden franchise tax.

The old tax system allowed businesses with good accountants to avoid paying taxes, meaning other businesses carried an unfair load, school districts struggled and local school property taxes skyrocketed, Perry said.

Assorted business groups, including manufacturers, retailers and service industry companies, endorsed the new business tax.

The legislation levies a tax on 1 percent of a company's gross receipts while retailers would pay at a rate of 0.5 percent. It allows deductions for either the cost of goods or employee benefits such as salary and health care.

Perry said the deductions serve as an incentive by rewarding businesses for offering additional benefits to their employees.

Businesses who hire illegal immigrants couldn't claim those tax deductions and face federal sanctions. However, policing for companies who hire undocumented workers would remain the federal government's responsibility.

Sole proprietors and general partnerships are exempt from the tax, as well as businesses whose gross receipts total $300,000 or less and those whose tax bill is less than $1,000.

Independent gubernatorial candidate Carole Keeton Strayhorn, also the state's chief financial officer, criticized the tax measure. While it requires some 200,000 additional businesses to pay taxes, it doesn't pay for the promised property tax cuts, she said.

The $2,000 teacher pay raise is small, and the property tax relief would vanish quickly, Strayhorn said in a release Thursday.

"This law leaves Texans with a $23 billion hot check," she said. "It is bad public policy, and I will blast it off the books after I am elected governor."

On Thursday, Perry said some of those opposing the plan are trying "to keep from paying their fair share."

Republican Rep. Dan Branch of Highland Park said any problems in the bill can be addressed in the 2007 legislative session because some businesses will have had a chance to analyze its effects by then.

State Rep. Jim Keffer, an Eastland Republican who sponsored the measure, joined Perry for the bill-signing in Brownwood. Then Perry planned to travel around the state holding ceremonial signings of the same bill.

The governor hasn't yet signed any of four other bills in the school finance package, which include a $2,000 across-the-board pay raise for teachers, more teacher performance bonuses and additional money per high school student.

Under the school finance plan, property taxes on the average-priced Texas home would drop by nearly $2,000 over the next three years.

Districts would get to keep nearly a $1 billion more from property taxes by 2008. Also, many districts wouldn't have to pay in some of their tax revenues to the state.

———

The business tax bill is HB3.

[Torie]

just confirms that YOU are a Union Hack, which union do you draw your pay from?

That kind of silly lashing out, gets you a penalty, and moves the ball back 15 yards towards your end zone. Would it not be more constructive, to politely invite Mr. Sinkspur, again, to give his opinion about you apparent ideas about slashing education spending in Texas? I have invited Sink to give his opinion on various matters, in a non confrontational way, and he almost invariably responds. THAT is the way to encoourage constructive debate. It really is.

[TexasTransplant]

Hang in there, I don't think that a measured lucid actual post that will contradict your post is any where near on it's way. Reality is a bitch, and you own the kennel.

TT

[TexasTransplant]

Sinkspur is a Her not a Him

[Extremely Extreme Extremist]

My solution is for the parents to fund those schools.

Texans should work to amend the state Constitution then. If it's mandated by the state Constitution then people have no business griping.

Personally, I think proceeds from the TX state lottery and a portion of the state sales tax should be exclusively used for education. Low income people play the lottery and spend money the most; therefore they would benefit the most.

[Extremely Extreme Extremist]

That kind of silly lashing out, gets you a penalty, and moves the ball back 15 yards towards your end zone.

I absolutely love the way you write. It reminds me of Chicago Tribune sports columnist Bernie Lincicome. Very dry, biting, and witty.

[Hardastarboard]

No sane human being wants to be a general partner.

Amen to that, brother.

[Torie]

No, he is a he (at one time he planned to become a Catholic priest), and he is quite consistently skeptical of unions, by the way, for better or worse, which is your post caught my eye. It was a very wild ball toss, and missed the hoop by a mile.

[Torie]

Thank you. What a kind little note to send me! I appreciate it very much. I have my ups and downs. The number of typos I put up, however, frustrates me greatly. When I write for a living at the practice of law, I get a second and third chance to clean up the mess. Here when you hit the post button, it is forever. :)

[I got the rope]

True.

[I got the rope]

Your home is not worth more. The dollar is worth less.

Boosting home values bythe government appraiser is a conflict of interest IMHO. It does nothing but boost revenue for the gubmint.

[BobL]

Thanks TT,

No argument with the gov's hacks regarding the Trans Texas Corridor. If these clowns hadn't jettisoned the gas tax as the primary means of funding our freeways over a decade ago (i.e., when gas was actually very cheap), we wouldn't be in near the mess that we are in now - where we are in the process of giving Spanish owned firms control over ALL of our roads (i.e., via non-compete clauses in their yet-to-be disclosed secret toll road contracts). No doubt the plan still sits well with the gov, as he is assured a seat on the Board of Cintra once we kick him out of office.

Anyway, this thread is not on that subject, so I'll leave it there. Now back to the original subject:

If you go back a year (or slightly more) ago, you'll see that this same bunch of Perry apologists were viciously attacking the most popular Republican in Texas by far, Kay Baily Hutchison, when she was thinking of running. They since turned their sites on Carole (who I agree could use some brushing up on conservative credentials - to say the least). As far as I can tell, they are paid by the governor (or someone associated) to simply attack the daylights out of any potential opponents, and anyone else (including yours truly and now Dan Patrick) who happens to oppose the governor.

That is their right to do as well as our right to respond (at least until they manage to silence internet discussion and talk radio).

People who get as personal as these people are simply desperate, nearing the end of a gravy train. If they had spent 1% of the time trying to convince the governor that he was doing really dumb things, rather attacking the his opponents, their political futures wouldn't be as crowded, and the governor and other Republicans would be coasting to victory in this solid RED state.

And I would have been able to vote straight ticket Republican, as I had for decades until 2002, when the road sellout became obvious.

I also think that my credibility is clear, as my posting history has very few (if any) attacks on other Republicans (except from maybe an attack or two from the right on McCain or Chaffee, but I'm not even sure of that), so I don't worry about perpetually angry people trying to stay employed.

Finally, he was right in one sense. I don't know who of the 3 I will vote for in the gov race, but it will be the person polling the highest, as my only objective is to defeat Perry's policies, and the only (apparent) way to defeat those policies is to oust him.

By the way, I'm waiting to see my state rep and state senator show some distance from Perry, as they will be voted against also if they refuse to do so.

[Richard Kimball]

Dittos. My house had been a rent house, and I purchased it and applied for a homestead exemption. The valuation went up $20,000 and my taxes stayed the same. They'll just up the valuation, the property taxes will stay the same, and I'll get to pay the business tax, too. Oh joy, oh joy. Don't forget the buck a pack tax on cigarettes that's going in.

[TexasTransplant]

Facts do not equal lashing out, Ms Sinkspur has expressed her opinion, I've expressed mine.

She is closer to the Union than I, My only concern is for the children (mine) I have Homeschooled and I have not, I can speak of the plus and minus. I can also tell you that the Principal at my kids school will call a Sherriff if I request a meeting. (What a wimp)

TT

[Torie]

I can also tell you that the Principal at my kids school will call a Sherriff if I request a meeting

That sounds interesting.

[TexasTransplant]

Well just who do I have Sinkspur mixed up with?

I figured it out...... OUCH>>>> I am wrong...

I know who.... and what I did, no excuse, no defense and I will take the beating that I deserve.

My apologies Sinkspur and my sincere apologies to all,

TT

[Torie]

No problem with me. To error is human, to forgive divine. But I suggest you direct your post to MR. Sinkspur, rather than myself.

[TexasTransplant]

My post was to you, not Sinkspur if you believe that MR Sinkspur is that shallow and needs to be stroked feel free to forward anything from me to you to HIM.

TT

[daybreakcoming]

Kinky is a caricature of what he thinks a Texan is. He was actually born in Chicago but spent most of his life here.

He would be an amusing governor to have in another lifetime.

[TexasTransplant]

Kay Bailey isn't running for Governor so I think That I will leave that block Blank, for I do not support Perry, I do however continually bad mouth his opposition, but I bad mouth him as well.

>>>>"And I would have been able to vote straight ticket Republican, as I had for decades until 2002, when the road sellout became obvious"<<<<

I've been there for many years, Now in my dreams I just shoot All Politicians and Lawyers, I always wake up when the Military is saving me from the Police.

Save your >>>>"I don't know who of the 3 I will vote for in the gov race, but it will be the person polling the highest, as my only objective is to defeat Perry's policies, and the only (apparent) way to defeat those policies is to oust him"<<<<

#1 Out of the 3 Perry is the only sane choice
#2 Out of the 3 Perry is going to collect 70% of the vote
#3 Just don't vote for Governor if you want to send a message, leave it BLANK, what is the worst that could happen? KInky? OK... Strayhorn (aka GW Light) OK...

The way we win in the next 2 to 3 years is LOCAL, it is more important now to get involved locally than ever, our borders are gone, our Country is in Danger from within and from outside. The Senate and the President have come up lame, I'm sure our Congresscritters will Vote YES on anything that Increases Spending, BUT THEY DON"T LEAD! The Senate is supposed to lead, The Military does Lead and YES The President J O B is to Lead! We sadley have found ourselves in a Vacuum. Vincente Fox is Leading, (and winning in the US with his Constituants that can Vote here and there as well)

Don't count on your State Rep Congress critter etc etc etc
Get Local, Get Vocal and LEAD.

TT

[Extremely Extreme Extremist]

Sinkspur is a Her not a Him

He's more of a man than you'll ever be. He's been posting since FR was born. I don't agree with him at times, but he's one of the best FReepers here.