80th Legislature: Neocons Call For Nine Cents Of Additional Property Tax Cuts

As if the fact that the Republican-led Texas Legislature has already put Governor Perry’s bogus property tax cuts ahead of each and every human need the Legislature could consider, the Geniuses at the Texas Public Policy Foundation are now caterwauling for another NINE CENT property tax cut THIS SESSION.

Will it ever end?

Here’s what TPPF had to say in a press release this week:

The Texas Legislature has sufficient taxpayer funds in the treasury and future revenues sufficient to provide additional property and TIF tax relief now AND in the 2010-11 biennium.

The state currently has $7 billion in the treasury and $1.2 billion in the Rainy Day Fund.

If the House and Senate conferees adopt the higher recommended spending levels for each budget article, the state will still see $2.7 billion transferred to the Rainy Day Fund.

Considering the above, the state will end the 2008-09 biennium with $4.5 billion in surplus funds and $4.3 billion in the Rainy Day Fund for an ending balance of $8.8 billion. (See back)

Assuming reasonable but generous budget growth and a conservative amount of revenue growth for 2010-11, the state will end that biennium with $2.2 billion in surplus funds and $6.5 billion in the Rainy Day Fund for an ending balance of $8.7 billion. (See back)

Repealing Only the TIF Tax

A TIF tax repeal would barely affect estimated future balances in the state’s surpluses. The 2008-09 ending balance would be $8.4 billion. The 2010-11 ending balance would be $8.2 billion. (See back)

Cutting the Property Tax 9¢ with a TIF Tax Repeal

A TIF tax repeal coupled with a 9¢ property tax cut would result in a 2008-09 ending balance of $5.9 billion. The 2010-11 ending balance would be $2.8 billion. (See back)

Risks in Not Cutting Taxes Now

Funds kept by the state and not returned to taxpayers grow government later, when balances are even larger.

The state will lose the economic boon that comes from cutting taxes.

The effects of the new business tax could be very negative; the offsetting effects of a property tax cut would be lost.

State concerns about home ownership rates and the manufacturing industry in Texas are only so much rhetoric if property tax rates are not reduced further.

Taxpayer confidence in the Legislature may be eroded if they believe there is no long term commitment to continue lowering property taxes.

Oh, if that doesn’t send you laughing until you pee yourself a little bit. Seriously. Let’s analyze that.

Check this statement:

Funds kept by the state and not returned to taxpayers grow government later, when balances are even larger.

Huh? But, when state government cuts its budgets to the bones and then gets in more revenue than anticipated (a la 2003 to the present), then we actually end up with a surplus that was built upon the backs of the poor and needy. So, which is better?

And, this:

The state will lose the economic boon that comes from cutting taxes.

I’m sorry, but prove that statement. We’ll wait while you do. *chirp* *chirp* *chirp*.

Now that the crickets have chirped on that one, let’s debunk some neocon nonsense: cutting taxes rarely results in an economic boon (unless it’s for the rich). Just ask, oh, I dunno…every economist who has ever examined the Bush tax cuts.

Still more:

State concerns about home ownership rates and the manufacturing industry in Texas are only so much rhetoric if property tax rates are not reduced further.

Home ownership rates, while they may have a little to do with property tax rates, have more to do with the fact that many Texans now simply don’t make enough to afford to buy a home. The minimum wage remains stagnant, many working families are screwed on the healthcare front because of CHIP cuts, etc. Need we go on? Texas and national public policy simply does not favor the middle class at this time.
And, finally, this lovely gem:

Taxpayer confidence in the Legislature may be eroded if they believe there is no long term commitment to continue lowering property taxes.

Baw haw haw! Whose confidence? James Leininger’s? Grover Norquist’s? Dan Patrick’s listeners? Please! The average citizen already has little confidence in the Texas Legislature as a whole, and it’s not because of property taxes. It’s because the GOP-led Craddickdewhurstperry majority does idiotic things like knock hundreds of thousands of kids off their health insurance, try to diminish a woman’s right to choose, wastes time on things like whether or not the words “under God” should be added to the Texas Pledge, and votes to pave over 1/3rd of Texas with a giant superhighway.