School plan makes sales tax hike likely (TX would have highest in nation)

[Rose Siding]

AUSTIN – The tax package pitched by House leaders on Wednesday would dramatically affect consumers and most businesses in Texas, raising several levies to give homeowners and business property owners a long-promised break on their school property taxes.

The proposal offers a massive tax swap: $5.5 billion a year in school property tax reductions in exchange for an increase in state taxes on sales, motor vehicle sales and cigarettes, along with a new payroll tax that would replace the state's loophole-ridden business franchise tax.

Members of the tax-writing House Ways and Means Committee approved the measure Wednesday evening on a 6-2 vote; one member abstained. All of the committee's Republicans and one Democrat voted for the bill. It is expected to go before the full House next week.
...
"This will make us the highest in the country," said Dick Lavine of the Center for Public Policy Priorities, an advocate for low-income Texans. He said the sales tax is one of the most regressive taxes around, overburdening families at lower income levels.

http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/030305dntextaxes.2a38a.html

[David__77]

1. Sales taxes are immoral.

It punishes the working poor, who should not be taxed. Income taxation and espcially business and capital gains taxes are just and moral.

[mhr]

2. But, But, But - The Republicans Are The Party Of Low Taxes And

Fiscal Responsibility - What Happened?

Is the world upside down?

Has the Devil taken control of the Republican Party?

Has God forsaken his chosen people?

What is a good Republican to do?

Become a Democrat?

[Rose Siding]

5. GOP: party of low taxes....if you're rich

You really CAN add "if you're rich" to all repub policy.

[TheFarseer]

3. Well well well

The most regrassive state in the union gets even more regressive. I bet the people bitching about their property taxes are the SOBs that want to build more gymnasiums and add a polo team and re-do the auditorium and......... but God forbid they're asked to help pay for it.

[calimary]

8. And - um - maybe we need to remind people, too - um -

what they're trying to do in Texas, NOW, is RECOVER, if at all possible, from the wreckage left behind by a certain idiot fuckwad governor who finagled his way into the White House about five years back. Just about now is when all the crap he either instituted or pushed for or implemented full-on, has started to take effect. Things have been in place long enough to start making an impact on people. And as we're seeing, it's a gravely adverse impact. So bad they're being forced to raise taxes and rob Peter to pay Paul or to keep from robbing Paul even more. They're having to play shell games with their money now, trying desperately to make some of it go toward remedying a few things. In effect, they, as a state, are having to decide which they can afford - the rent or the meds, the groceries or the light bill. It's all shakedown from when bush was in charge.

And let me guess - um - NOBODY is pointing this out, correct? Is there ANYBODY in the media, anywhere, or in economic analysis, that's tracing the blame back that far? Or are they now just all of a sudden in some mystery crisis that had no beginning or root anywhere else, anywhere or anytime in the past, and just sort of sprung out of the forehead of Zeus, full-grown?

Oh, but we can't blame bush. He was sent to us by God, after all...

Just interesting, though, how this just happens to be happening in TEXAS, the last place where bush left his fingermarks all over everything. What a coinky-dink.

[AllegroRondo]

4. And Texas has no income tax

[oneighty]

9. Income

Truly reflects ability to pay. It is fair. It is progressive. It is essential to the future welfare of the wealthy.

When the poor and abused grow weary of exploitation they will rise up and take whatever they wish.

Including the lives of their perceived oppressors.

180

[Igel]

21. Nonetheless, Tx has no income tax.

And as of this year we can deduct our sales tax like people living in other states deduct their state income tax.

It is regressive.

I don't understand the business about the payroll tax. But I freelance. And I have no idea what property taxes are like here.

[snooper2]

28. I'm looking at buying a house this year for the first time..

And the property taxes suck. Though Collin County isn't as bad as Dallas county is...

You can check it out on the Collin County website
http://www.collincad.org/search.php

check out this house..
http://www.collincad.org/collindetail.php?theKey=237906

[Igel]

31. We'll be looking next year ...

just signed another overpriced lease. Couldn't bear to move again after just 6 months.

Houston, where not only do we have the property taxes ... we have bayous ... and apparently really bad flooding problems.

[snooper2]

38. I'm learning why I hear foundation repair ads all the time

the ground in Texas is far from bedrock.. :)

[bvar22]

6. How do these people get elected???

There are sooo many more of us on the bottom end than the rich assholes on the top end.

How the republican party gets more than 1% of the vote is beyond me.

[DBoon]

7. Their preacher tells them they will burn in hell if they don't vote repub

eom

[Rose Siding]

10. It's a puzzle. Look at the stats when Bush was gov

Most of the sources in this doc are from just before or just after he entered the WH from TEXAS!

-raked with other states, spending per capita

public health- 45th
mental health- 47th
education- 37th
parks- 48th
police- 49th

More children uninsured than any other state, less 2 yr olds immunized than any other state, 2nd highest teen birth rate, and second highest percentage of population that goes hungry.

More figures and all the sources are here

http://www.shapleigh.org/files/focus_documents3.pdf

[TheFarseer]

25. yeah but,

That's on a count a doze Rexicans comin' inda our country. That and those dagblasted liberals! /sarcasm

[Bridget Burke]

11. Many Texans now vote electronically....

Back in 2002, Austin & Harris County (Houston) were pioneers. Two of the more liberal areas in the state--coincidence? I know many were surprised that Cornyn became senator. His Democratic opponent was a moderate African-American who'd done well as Mayor of Dallas (Dallas!)

I doubt that Texas would have gone "Blue" in the last election--but I wonder how much of Bush's "mandate" is electronic padding?

(Not that there aren't lots of dumbasses here. Texas is a big state.)

[TheFarseer]

27. TX lost a load of democratic reps

between gerrymandering and e-voting it's no wonder

[callous taoboy]

13. How do these people get elected?

More people tuned into the Superbowl in 2002 than voted druing the mid-term elections. That's how.

[rainbow4321]

41. Sickening election factoid.....chimp's second term as TX gov

I had heard this but just now went and looked it up:

The last time chimpass ran for gov down here...the Dem Lt Gov candidate lost by only 68,731 votes <see below from TX SOS>..WHY is this important??? Had the Dem won, chimp NEVER would have ran for prez in 2000. Because it would have meant that if chimp had won, the TX Lt Gov would have stepped up to the Gov position..and that would have put Texas in the hands of a a Dem gov. Somehow I don't think chimp or his cronies down here would have allowed that.

We got to see a fucking blood bath for Lt Gov race that year. And know we know why. Chimp, who "promised" at the time that he wouldn't run for prez and would fulfill his Gov term, was full of shit. The TX repub party knew what they were doing way ahead of time. So in a nutshell, we now have chimpass for prez all because of 68,731 TX voters from that 2nd gov election. Look how close we came to him not being able to go off and run for prez:

TX Lt Gov race:
Rick Perry REP 1,858,837 50.04%
John Sharp DEM 1,790,106 48.19

[Mari333]

12. Those in Texas who voted for Bush, tough shite, you asked for it

Anyone who voted against Bush, you have my empathy.

[Maestro]

16. Thank you

And I didn't vote for the arse when he was governor either!!!!!

[SammyWinstonJack]

33. Neither did I. n/t

[booksenkatz]

14. Peter, meet Paul. Either way you pay, right?

And Texas still has one of the suckiest school systems in the country. Often, they spend tons of money on super-fancy buildings, but won't spend it on factors that truly EDUCATE Texas children (quality teachers, supplies, lower class sizes, etc.). It's sickening. They can raise money until Nixon gets re-elected, but until they figure out how to spend it more responsibly and creatively, they're still going to have one of the suckiest school systems in the country. And you've never heard such complaining as when an average Texan has to pay another penny in taxes! They should just have a state income tax and be done with it, but there would be hell to pay, even if it were not written into Texas law.

(Daughter/sister/sister-in-law of Texas educators here.)

[Maestro]

15. And all of this didn't even include a pay raise

to get Texas teachers into the upper half average pay for the nation. Pathetic. We teachers are fighting like mad to educate children. I don't believe we have the "suckiest" school system in the nation, far from it, that is California, however, under the draconian NCLB it is getting harder and harder and we need to attract and retain good teachers will commensurate pay. This bill does not address that. Meanwhile health care costs go through the roofs, schools are falling apart in property poor areas and politicians just want to raise the sales tax. What a bunch of morons.

[booksenkatz]

19. Let me clarify what I mean by "suckiest"

I meant that having poor priorities is sucky. Worshipping high school football financially before core subjects is sucky. BTW, my dad was just voted in as one of the best Tx hs football players in central Texas history. It's a nice honor, but it is wild to me that it matters so much in Texas! Up here in Michigan, no one can remember who played last year, much less describe a specific game from 1955 between two little towns. But they can down there. The PRIORITIES in Texas education are screwed up, and all the money in the world won't change that, sadly. I particularly feel sorry for Texas schoolboys who are not gladiators. Brains just never seemed to be treasured much down there when I was growing up; hopefully that has changed.

(For the record, I don't think I've ever used the words suckiest or sucky before in my life, much less in a post... it just kinda rolled out there, LOL!)

[Maestro]

22. Oh no I see your point

All hail the mighty grid-iron. I was furious last year when my local district passed a 100 million dollar bond election, only about 40 million was earmarked schools and academics, the rest was for a technology investment, (I'd rather see more money spent on books in the library and such) and a brand spanking new football stadium!!!!!!!!!!!!!!!!! The bond was broken down into three parts. I only voted for the 40 million bond; not the others, but they passed anyway and now my taxes are going up.

[booksenkatz]

24. It's those kinds of spending choices that make me wanna rip my hair out

Up here where I live, the public school buildings aren't very pretty, just serviceable, but MAN the quality of the education is phenomenal! Whenever I visit my family in Texas, they drive me around and show me the new schools that are being built around Dallas... gorgeous buildings, like palaces, in Collin County. And oh, yes, the stadiums! Gotta have those showplaces so that the Texas boys can learn how to strut like the president, dontcha know! I have nothing against sports in its place, but in states like Texas, it sucks the lifeblood out of other subjects in school. Couldn't we have a little moderation, when resources are so tight?? Arrrgh.

[Rockholm]

17. Guess they can't point fingers at Massachusetts anymore..

Better schools, lower taxes. Ah, a DEMOCRATIC state.

[napi21]

18. Do you realize why they have the highest sales tax and ppty taxes

They are one of a very few states that doesn't have a State income tax!

I lived in Tx for 6 years, and I'm sure wasn't complaining when I didn't have to pay income taxes, but, if the citizens demand certain services, the $$ has to come from somewhere!

I happen to think that an income tax would be much more fair than increasing the sales tax! At least with the income tax, people who make more pay more. With a sales tax, when you buy a kitchen table, you pay the same tax wether you make $5.15 or $500 an hour!

Maybe they should think about that approach.

[Maestro]

23. Yes, we know

I've been advocating a state income tax for years but it falls on deaf ears. Politicians democrat and rethuglican alike see it as suicide. So they just tax us in other ways. I can't believe the populace is so ignorant. A state income tax dedicated to education, lowering or doing away with property taxes and lowering the sales tax would be a great thing. Hey, but I am not an economist. What do I know? It sounds good though. :shrug:

[Maestro]

20. For all of those living in Texas

let your reps know about this and your disgust.

http://www.capitol.state.tx.us/fyi/fyi.htm

[Bridget Burke]

26. One "good" thing--no bitching about "illegal" students!

Most undocumented workers don't own land. But, as all renters do, they pay their share of property tax. (Yes, landlords pass it on!)

Of course, they already pay sales tax, too. Now, they may pay more--along with everybody else in Texas.

Solution: Institute a State Income Tax, paid by all legal residents, to fund schools, etc. Next time I hear somebody bitching about "the illegals" I'll make this suggestion. Exploding heads?

[Avalon Sparks]

29. F the Texas GOP - it's a tax increase for me! (even as a homeowner)

I'm surprised there isn't any comments on the proposed increased PAYROLL taxes for Business. Business would have to pay 1.1% taxes on wages for every employee with a cap at $80,000. That's the real kicker here. Of course, employees will end up eating it, if they are lucky enough to have a job. Business's WILL pass it on. If we are lucky ducky enough that Bush gets his decreased tax cut for business's for employee health care and this increase for employee wages passes, I believe we can completely kiss employee covered healthcare GOODBYE!

Hubby and I are almost upper middle class, and this is a tax INCREASE for us.


The basics:

1.1% tax for business on each employee with cap at salary of 80,000. (cap of $880.00 per year)

Increase sales tax (except on food and medicine) from 6.25 to 7.2 (15% increase)

Increase cigarette tax, 1 dollar a pack making it $1.41 cents a pack tax

1.25% tax increase on telephone service

------------------------------------------------

SO I did my own calculations:

On my husband and myself's combined salary our employers are going to have to pay $710 dollars tax for our labor. Of course this will come out of our pockets because either we won't get raises this year, or they'll add that much to our health insurance portion that we pay. Either way, it will hit the us, the workers.

6 dollars or so more on the phone a year. Would be 12 bucks if we had a mobile phone too.

If we spend 30K (a little more than the price of a car) a year on things that can be taxed that's $300 more sales tax will pay.
Actually would make my sales tax in Dallas 9.2 cents for every dollar spent. Granted we don't have a state income tax, but that still seems too high.

So I'm up to about $1,016 dollars taxes with this plan (lucky I don't smoke)

The property tax we'll supposedly save on our house - $825.00

It's a good thing for the Texas GOP that due to the poor educational system in this country/state that so many Texans can't do basic math.


What kind of effect would that have on the economy? Higher sales taxes, a tax on jobs?????

After reading more papers this morning, I realized that it's only a bid to decrease property taxes, it won't increase education money. Also, there is no provision for landlords to pass this decrease onto their tenants.

So those high salaried million dollar McMansion owners will get an average decrease of 400 a month ($4,800 a year) on their property taxes, while their wages are only taxed up to 80,000. So that's all they'll have to 'payback' ($880) to their employers in the form of decreased raises or increases on health insurance. Any salary they make over 80,000 won't be hit.

This is a blatent way to give a tax decrease to the rich, and increase taxes on the middle and lower classes.

This is so screwed up.

[Maestro]

36. Send your calculations to newspapers

your reps and so forth. This is so typical. I am in the same boat you are in. My taxes just went up, my health care goes up, my salary is stagnant, etc... and now I receive "help" from the House. *uck them!

[alarimer]

30. time to buy everything over the internet

As long as the store does not have a Texas presence, I won't be charged slaes tax. Sales taxes are extremely regressive. let's see if we can bankrupt this stupid fucking state.

I live in a city (Corpus Christi) that tacks on another half-cent increase every time they want to build some new boondoggle. This shit has got to stop. They are only doing this because they don't want to raise property taxes (they cut them under Bush); so they are putting the burden on poor people. Typical Republican assholes

[Wright Patman]

32. All you folks advocating an income tax

for Texas ought to think about it more.

The current legislature will make it on only the first $90K of income or something, just as FICA is now. If anything CAN be done regressively, it WILL be done that way by Texas lawmakers.

Plus, there would have to be a constitutional amendment passed. How many of the five or ten million residents who have moved here from states with income taxes over the last three decades or so do you think would vote to impose on themselves what they just moved here to escape?

[Maestro]

34. Oh it will never happen

and I wouldn't trust the Texas government to implement a fair one. I am just saying that, if done properly, it could help things, but you are right, it wouldn't pass for a variety of reasons.

[booksenkatz]

35. That's true; however

I always say that you get what you pay for. I spent the first 27 years of my life in Texas, another 7 in Florida, and now almost 10 in Michigan. The *quality* of life up here in Michigan surpasses my experiences in the two no-income tax states by a longshot. I will never go back to live in a state that does everything it can get away with on the cheap. Never. The folks who are moving to Texas who are looking forward to "saving money" because they won't have to pay income tax any longer are in for a sorry shock when they see that there are things they'll have to learn to do without. And they'll be shocked to see that what they aren't paying in state income tax any longer, they'll still be paying in other sneaky ways that even Michigan hasn't even thought of yet! LOL

There are some things about Texas that I'm not homesick for.

[bluestateguy]

37. Renters get screwed

We get the sales tax hike, but no property tax cut to offset it.

They just hurt the economy.I am in the process of moving to a new apartment. I was willing to spend up to $650 a month on a new place, but upon hearing of this I will instead take an apartment at $579 a month in anticipation of the higher sales taxes.

If you are looking to buy a car, a computer or a major household appliance I would make plans to buy it soon.

[American Tragedy]

39. Well, that's appropriate, since sales tax is highly regressive.

As with automotive and other excise taxes, they're an excellent way to shift the burden onto people who make too little money to pay income taxes, like seniors living on Social Security.

The one truly fair and sensible way to draw revenue is through progressive income taxes, which of course Republicans absolutely hate since it tends to be somewhat equitable.

[yellowcanine]

40. This helps the "lucky duckies" who don't have any money to buy stuff.

They don't have to pay the sales tax. Know what I mean?