Republicans Want To Eleminate Property Tax In Favor Of Expanded Sales Tax
By Vince Leibowitz on Sep 18, 2007 in 2008 Texas Elections, Texas Public Policy & Taxation ![[Post to Twitter]](/wp-content/plugins/tweet-this/icons/tt-twitter.png){kind=icon}
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We’ve told you about the little tour that state legislators in East Texas are doing to tout the new ideas of the Texas Conservative Coalition. Now, it seems as though the Republicans are using this little “tour” to try out some of their potentially disastrous legislative proposals for the next session, including a plan to eliminate all state property taxes in favor of an increased sales tax:
For one thing, the Texas Conservative Coalition intends to push for legislation to eliminate all state property taxes.
John Colyandro, the organization’s executive director, says he has a better idea of how to fund public schools.
“In my opinion, it ought to be through the sales tax,” Colyandro said Monday night during a town hall meeting in Greenville.
[...]
Colyandro noted how the state currently grants $31 billion in exemptions from the state sales tax to Texas businesses.
“And approximately $17 billion is needed to fund our public schools,” he said. One item which would come under the sales tax would be haircuts.
“There is a list of 40 to 50 things that probably would be taxed,” Colyandro said.
It is almost unbelievable that even Texas Republicans would think this is a wise idea. Of course, they’re taking their cues from John Colyandro who is, of course, the indicted former Texans for a Republican Majority Leader head.
Texas already has one of the most regressive tax systems in the United States. And, we all know that a sales tax is the single-most regressive kind of tax you can have.
If you really want to eliminate property taxes entirely (which I think may be almost impossible without a total revamp of the tax system), then why not an income tax?
In states with small personal income taxes combined with small property and small sales taxes, citizens face–overall–a far less steep tax burden than they do in Texas.
Now, before you jump all over me for even mentioning the word “income tax” (and possibly causing Bob Bullock to turn over in his grave), consider this: Texas is one of only seven states that don’t tax personal income. Sure, that sounds great, right? Right? Wrong. Texas has one of the most regressive tax systems in the nation, meaning, among other things, that low- to middle-income citizens feel a bigger pinch.
Consider what the Center for Public Policy Priorities had to say about an increase in sales taxes in Texas last year:
A higher sales tax would be volatile and regressive. An income tax would reduce taxes on the middle class and benefit the economy. Public opinion polls show that Texans are open to considering a Texas-style income tax.
Clearly, the GOP is heading down another wrong path, and the Conservative Coalition is leading them there.
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This is of related interest. Wade Gent who I commented on here on another story has thrown his hat officially into the ring to challenge Betty Brown for her State House seat.
It appears Mr. Gent favors this tax change.
From The Terrell Tribune:
Gent said he favors abolishing the school property tax in favor of a broad sales tax on nonfood items, a concept supported by the Republican Party of Texas.
http://www.terrelltribune.com/articles/2007/09/18/news/news02.txt
Colyandro, like Perry, and DeLay are going to lead their party back into the wilderness once the people finally notice what they’ve been up to.
They appear to be worshipping at the altar of “The Church of the Market,”
but what they’re really after is some sort of plutocracy, government of, by, and for the rich. Why? I don’t know: maybe they’re real believers in “trickle-down.”
http://www.propertytaxsolution.com Real Problems, Real Texans, Real Solutions.
All Texans need to consider that while the current Ad Valorem system is well steeped in tradition, it is fatally flawed. Run away property values have caused Texans to rethink everything from retirement to long term purchases of taxable property. With the current effort to increase all Texas property values by hundreds of percent, our tax bills are assured to double every seven years for at least the next fifteen years! What does this mean to you? If your goal is to retire in ten years you need to set aside at least twice your current tax bill in order to retire in your current home. If your goal is to purchase property over a long term you are now faced being unable to project your escrow with any reasonable belief taht you will be accurate. Recent years have validated the fact that annually calculated escrow payments have the real ability to become larger than the stable, scheduled principle and interest payment. In the 80s two factors, inflation and runaway interest rates, destroyed our economy. Three factors are now at play, “ballon mortgages, dramatic increases in the sales price on fuel, electricity and other petroleum based products, and runaway property taxes. http://www.propertytaxsolution.com is the Real Solution! A locally controlled sales tax phased in over four years is the only responsible solution. Put the money back in the hands of Texans! Create real property Ownership! We must not be the first generation to leave our children a Texas in worst condition that we received Her.