Mixed reviews for tax plan

[NoPasaran]

The proposal, carried by Rep. Talmadge Heflin, R-Houston, would cut school property-tax rates by one-third. That reduction in the statewide property tax from a cap of $1.50 per $100 of assessed value for operations to a rate of $1 per $100 would take $5.3 billion out of the public school finance pot in 2005, according to estimates from the state comptroller's office. Also gone would be the state franchise tax and its $1.9 billion of annual revenue.

To make up the loss, and then some, the House proposal includes creating a payroll tax and increasing the sales tax and expanding its reach. The proposal also would legalize video lottery terminals -- slot machines -- at existing racetracks and casinos on Indian reservations and would dramatically increase tobacco taxes.

-snip-

But with about three weeks left in this special session, the House proposal will have to negotiate a bewildering maze of lobbying interests and idiosyncratic preferences of 181 legislators. Sen. John Whitmire, D-Houston, said almost any omnibus proposal, though it may have bits and pieces included to appeal to various lawmakers, will inevitably include over-my-dead-body elements for other legislators.

Sen. Jane Nelson, R-Lewisville, said she is implacably opposed to any gambling elements. Tuesday, she was already talking about a filibuster and pondering medical procedures to allow her to spend hours on the Senate floor without going to the restroom.

-more-
http://www.statesman.com/metrostate/content/auto/epaper/editions/wednesday/metro_state_04f8757ed09a100100e9.html

[sonias]

1. How about that payroll tax?

(snip)
Scott McCown, executive director for the Center for Public Policy Priorities, said the sales tax increase and payroll tax would fall disproportionately on lower-income people.

"When you tax payroll, you are directly intensifying a payoff for having a low wage," said McCown, a former Travis County district judge. "It's like a laser beam on the wage component of the business and intensifies their incentive to pay lower wages. So it's very hurtful to working people."
(/snip)

What the heck are these idiots thinking? Punishing the poor of course, keeping those wages down.

By the way, Scott McCown was the former district judge who ruled Texas' school finance system was unconstitutional in 1990, because the amount of money spent per student varied by school district. McCown is so passionate about equity that he quit his judicial post and now works for CPPP.
http://www.cppp.org/

He's a great speaker and someone who really cares.

Sonia

[NoPasaran]

2. The rich get richer and the poor... well you know how it goes

Hit low income folks with the payroll tax and higher sales taxes another buck a pack on smokes and encourage them to gamble more of their income away. But the good news is that the residents of the McMansions will get some property tax relief. Woo Hoo!

[mbperrin]

3. Definitely, people who own millions of dollars worth of real

assets need a break, while those who rent definitely need to pull their weight!

Hell, why not take Pgil Gramm's proposal for retired teachers (insure them and make the state the beneficiary) and just expand it? All renters would be insured by the state and the proceeds when they died could go to the state!

Puff and drink away, fellers! You're just helping the budget!

Stuff like this is why we only let the Lege meet every other year anyway. We need to do away with special sessions. Until then, hide your women and lock up the liquor - the Lege is in town!