GOP governor pushes Texas' first sales tax hike in 30 years
AUSTIN — Gov. Greg Abbott on Wednesday called for Texas’ first sales tax increase in nearly 30 years as Republican leaders who promised to boost money for classrooms and cut property taxes struggle to achieve both with just weeks left to deliver.
The plan would push the sales tax rate to 7.25%, tying Texas with California for highest in the U.S., an irony for Texas Republicans who for years have mocked the nation’s biggest liberal state as the wrong way to govern.
But Abbott is in a bind. He and other Republicans promised tax relief and an infusion of billions of new dollars into schools in the wake of the Texas GOP’s worst election in a generation. Those efforts, however, are in danger of stalling and the May end date for the 140-day legislative session is quickly approaching.
“Texans are fed up with skyrocketing property taxes,” Abbott said in a joint statement with the Republican House and Senate leaders. “If the one-cent increase in the sales tax passes, it will result in billions of dollars in revenue to help drive down property taxes in the short and long term.”
Read more: https://www.amarillo.com/news/20190410/gop-governor-pushes-texas-first-sales-tax-hike-in-30-years
Note: Texas does not have an income tax, but the Rainy Day fund is poised to hit $15 billion in a couple of years. Sales taxes are also regressive; meanwhile, corporate properties (such as office buildings, refineries, and chemical plants) are undervalued
Source: https://apps.texastribune.org/features/2019/rainy-day-fund/
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