Hutchison Blasts Perry On New Business Tax

In what will no doubt become the central theme of the 2010 GOP primary for Governor, U.S. Senator Kay Bailey Hutchison criticized Governor Rick Perry about the state’s new business tax before the Texas Association of Business in Dallas yesterday.

AP notes:

Hutchison called the tax, which goes into effect in mid-June, an “abject failure” while speaking to the Texas Association of Business on Wednesday, The Dallas Morning News reported on its Web site.

The business tax was adopted during a 2006 special session to revamp the state’s method of paying for public schools. Property tax relief that also was adopted was supposed to offset the higher taxes.

“We don’t see property taxes going down at all, and the business tax, it’s a corporate income tax,” said Hutchison, also a Republican.

Of course, one way to gain support from the well-moneyed, big-business interests in the party is to call anything an “income tax.” Calling it a “corporate income tax” makes it that much more taboo. Whomever is doing Hutchison’s messaging on this particular issue certainly came up with a catch phrase that will echo in the halls of big business when moneyed interests decided whether to support Perry or Hutchison in two years.

Of course, Team Goodhair fires back:

“Sen. Hutchison was quiet as a church mouse during the school finance debate. She’s never offered any constructive solution to ending Robin Hood and if she has any proposal to stop runaway appraisals–which are the reason for the high property taxes –that can pass the Legislature, we’d love to hear them,” Castle said.

That’s actually a pretty weak response when you look at it–no actual defense of the program, just saying that Hutchison offered no solution.

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