republican screwjob in texas, here it comes folks.

[SmarterThanYou]

the republican majority in texas is trying to sneak one by on us. House Bill HB3 was introduced today with no notice and prepared in secret committee to institute a payroll tax in texas.

texas HB3

apparently, house speaker craddick was a little miffed at so much attention being brought to this that the vote that was scheduled for thursday was bumped up to this morning to avoid a gathering protest that was being organized.

 

[krisy]

the republican majority in texas is trying to sneak one by on us. House Bill HB3 was introduced today with no notice and prepared in secret committee to institute a payroll tax in texas.

texas HB3

apparently, house speaker craddick was a little miffed at so much attention being brought to this that the vote that was scheduled for thursday was bumped up to this morning to avoid a gathering protest that was being organized.

Is it is possible the tax is really needed? Not being sarchastic.I am really wondering. As much as I can't stand taxes,I have voted for levies in the past for schools and police. Given the stanse most Republicans take on taxes,I an just wondering.

 

[SmarterThanYou]

The conservative talk shows are denouncing this bill. They are saying that although this lowers property taxes SOME, the house is lying about it being 1/3. It's only 1/6 because it only lowers the school property tax. It raises taxes on those making 23k or less a year and lowers taxes on those that make 140k or more a year. This tax isn't needed.

 

[krisy]

The conservative talk shows are denouncing this bill. They are saying that although this lowers property taxes SOME, the house is lying about it being 1/3. It's only 1/6 because it only lowers the school property tax. It raises taxes on those making 23k or less a year and lowers taxes on those that make 140k or more a year. This tax isn't needed.

Hmmmmm....maybe not. Proprerty taxes around here are getting out of control-I know that much. I would be curious to see what they are in the rest of the country.

 

[manu1959]

the republican majority in texas is trying to sneak one by on us. House Bill HB3 was introduced today with no notice and prepared in secret committee to institute a payroll tax in texas.

if they were going to sneak it through and i presume vote on it in private as well? how the hell did you find out about it? oh yea, it is a publicly run govt. where they vote in public....you just don't like the results cuz the W stands for winner

 

[SmarterThanYou]

if they were going to sneak it through and i presume vote on it in private as well? how the hell did you find out about it? oh yea, it is a publicly run govt. where they vote in public....you just don't like the results cuz the W stands for winner

i suppose the idea that the conservative talk show hosts have contacts within the legislature slipped your idiotic mind? but i forget, people think i'm the typical liberal who will do anything to bash bush.

 

[5stringJeff]

the republican majority in texas is trying to sneak one by on us. House Bill HB3 was introduced today with no notice and prepared in secret committee to institute a payroll tax in texas.

texas HB3

apparently, house speaker craddick was a little miffed at so much attention being brought to this that the vote that was scheduled for thursday was bumped up to this morning to avoid a gathering protest that was being organized.

Interesting. What exactly is the payroll tax supposed to fund, and why can't they use existing property taxes to fund it?

 

[SmarterThanYou]

Interesting. What exactly is the payroll tax supposed to fund, and why can't they use existing property taxes to fund it?

Texas has long been trying to do away with the 'robin hood' school funding. I believe this may be part of it. What they haven't explained is what the new taxes are going to fund, especially when they are already planning on turning the new highway they are building into a full length toll road.

 

[dilloduck]

Texas has long been trying to do away with the 'robin hood' school funding. I believe this may be part of it. What they haven't explained is what the new taxes are going to fund, especially when they are already planning on turning the new highway they are building into a full length toll road.

the change is nice----the dems have been screwin Texas for years

 

[SmarterThanYou]

the change is nice----the dems have been screwin Texas for years

so increased taxes are cool, as long as its a republican majority? better to be screwed by republicans instead of democrats?

 

[dilloduck]

so increased taxes are cool, as long as its a republican majority? better to be screwed by republicans instead of democrats?

yes

 

[5stringJeff]

so increased taxes are cool, as long as its a republican majority? better to be screwed by republicans instead of democrats?

OK, next question: how high are property taxes? How "progressive" is the TX tax system now? Even though this is a "regressive" tax bill, would it make the overall taxation in TX more "flat?"

 

[SmarterThanYou]

yes

dillo, i've never known you to be so partisan. i find it appalling that you would actually approve of new taxes as long as the republican party is pushing it, especially with the crap you have to deal with in austin.

 

[SmarterThanYou]

OK, next question: how high are property taxes? How "progressive" is the TX tax system now? Even though this is a "regressive" tax bill, would it make the overall taxation in TX more "flat?"

i'll have to look for that particular figure and get back to you. what i'm having a problem understanding now is that all of the local conservative talk shows are saying this is a 'payroll tax' for texas with the 1.15% increase to small business revenue proposed by a republican led texas legislature and republicans outside of texas are ok with this. Did I miss the magnetic pole reversal already? Are republicans now in favor of more taxes? Because thats what this bill is.

 

[5stringJeff]

i'll have to look for that particular figure and get back to you. what i'm having a problem understanding now is that all of the local conservative talk shows are saying this is a 'payroll tax' for texas with the 1.15% increase to small business revenue proposed by a republican led texas legislature and republicans outside of texas are ok with this. Did I miss the magnetic pole reversal already? Are republicans now in favor of more taxes? Because thats what this bill is.

I hear you, and that's why I'm asking more questions. I am automatically very wary of any tax increase, but I'm thinking that if the GOP is advocating a tax hike, there's got to be a reason for it. I'm thinking one reason might be to "flatten" the progressivity of the TX tax system - because you did say that property taxes would decrease as a result of this bill. The question is, will the decrease in porpoerty taxes offset the increase in payroll taxes, especially for lower-income workers?

 

[5stringJeff]

I always have a fallback position whenever I take a risk. If all else fails, I'll die horribly, at great length, and in great pain. Mind you, it's not a good fallback position...

BTW - love this signature!

 

[SmarterThanYou]

This is more detailed info, more of a report on the bill, that i can find.

The House Ways and Means Committee approved on March 2 a measure that would cut property taxes by one-third, create a
new payroll tax on Texas businesses, increase cigarette taxes by $1 and raise the state sales tax rate from 6.25 to 7.2 percent.

Reducing property tax rates
Under the bill, the maintenance property tax rate levied by school districts would be lowered from $1.50 to $1 per $100 valuation.

Property tax relief under the plan is expected to cost $5.4 billion a year.
Another measure in the bill calls for dedicating 15 percent of future state budget surpluses toward property tax reduction. For
example, if the state has a $10 billion surplus and the property tax rate is $1 per $100 valuation, then $1.5 billion out of the surplus
would be used to rollback the rate to 85 cents per $100 valuation.
Effectively referred to as a “buydown,” the plan allows the state to distribute the surplus dollars to the local taxing units and
requires that they lower their tax rate by a certain percentage.

Truth in taxation clause nixed
HB 3 originally included a “truth in taxation” clause that would have capped the amount of revenues a local taxing unit could raise
without voter approval. The original taxpayer protections in HB 3 were modeled after Rep. Carl Isett’s (R-Lubbock) HB 1006. The
clause would have forced local taxing entities to lower their tax rates when property values increased quickly or to seek voter approval
of revenue increases larger than 3 percent. Isett noted that his taxpayer protection provisions most help low-income homeowners.
Lower-end homes often grow in value less quickly than middle and upper class homes. A taxpayer protection bill that forces rates
down when values rise would, Isett said, likely provide more tax cuts to low income families. Isett predicted the changes in the
taxpayer protection provisions will provoke discussion when HB 3 hits the floor.
However, portions of the clause were stripped from the bill by an amendment offered by Vice Chairman Mike Villarreal (D-San
Antonio), allowing local taxing entities to increase the tax rate without an automatic election. Districts only need to provide public
notice and hold a public hearing.

Mandatory sales price disclosure
To help appraisal districts more accurately determine the value of properties, HB 3 includes mandatory sales price disclosure of
homes when they are sold on the market.
Dick Lavine, of the Center for Public Policy Priorities (CPPP), who also serves as vice chairman of the Travis Central Appraisal
District said, “Sales price disclosure will improve the operation of the district. It will improve the accuracy of the appraisals, and it may
reduce the number of protests we have to handle every year…I think there’s greater public confidence for appraisals that are based
on market values and market information.”

Shifting the tax burden
To pay for these cuts, the bill creates a “reformed franchise tax,” commonly referred to as a payroll tax on Texas businesses. The
tax would effectively replace the current franchise tax. Businesses would pay a tax of 1.1 percent on wages of each employee earning
up to $80,000 a year. Nonprofit organizations, government entities and sole proprietorships would be exempt from the tax.

Given that the state Constitution forbids a state income tax, HB 3 specifies that businesses cannot deduct the payroll tax directly
from an employee’s wages. The bill imposes criminal and civil penalties on violators.

However, Byron Schlomach, chief economist of the Texas Public Policy Foundation, argued that the payroll tax was a hidden
type of income tax.

“I think replacing the old franchise tax is a good idea,” said Schlomach, “but in this particular case, I think it’s being replaced by
something arguably worse. It is an income tax. It’s a tax on earnings. It’s just that you’re charging the [employers] paying the
paycheck before the person who earned the money ever sees it.”
Legislators expressed their concern that the current franchise tax is so riddled with loopholes that only one in six businesses pay
it. The new tax would cover nearly 90 percent of the businesses in the state and cost approximately $1.6 billion per year.

Small business owners who testified at the hearing told legislators the payroll tax would hurt their businesses.
“I almost had a heart attack when I heard there would be a payroll tax because that is a tax on jobs,” said Wanda Rohm, owner of
Presto Printing in San Antonio and member of the National Federation of Independent Business. “You need to consider the economic
impact it’s going to have on small businesses. We are the ones who generate more jobs… yet you’re putting the heaviest burden on
us.”

Certain health care providers would be offered tax relief in the form of a credit if 15 percent or more of the business’s revenue
came from Medicaid and Medicare payments. Such providers would qualify for a 40 percent credit for every dollar received under
Medicare and Medicaid.

Increasing sin taxes
The legislation also increases “sin taxes” on tobacco products. HB 3 raises the tax on cigarettes from 41 cents to $1.41 per pack.
The tax rate for smokeless tobacco products was increased from 35.2 percent to 40 percent. The bill also includes a complex tax
formula for cigars. If HB 3 becomes law, Texas would join many states in recent years that have increased sin taxes to raise revenue.

According to the American Lung Association, 16 states and the District of Columbia raised cigarette taxes in 2003, increasing the
average state cigarette tax by a dime to $0.72 per pack. Rhode Island leads the nation with a state tax of $2.46 per pack and
Kentucky has the lowest tax at $0.03. It is estimated the tax increase on tobacco products would generate an additional $648.6
million. There is no new tax proposed for alcohol.

Increasing the sales tax rate
The state sales tax rate would increase from 6.25 to 7.2 percent. It is anticipated consumers will pay an additional $2.02 billion per
year in state sales taxes.

Along with the increase in the sales tax rate, the bill also expands the number of goods and services that can be taxed. Billboard
advertising, bottled water, car wash services, and automotive maintenance and repair would now fall under the new sales tax.
Newspapers would be subject to the sales tax for the first time. Although there was no mention of it in the committee substitute bill
that was voted out of committee Wednesday, legislative staffers indicated that Legislative Council inadvertently left the indicated
language out of the bill. Legislators are expected to introduce a technical amendment to the bill on the House floor that makes
newspapers taxable.

Sales taxes on motor vehicles and boats would increase from the current 6.25 to 7.35 percent under the bill.

Bill Walters, president of the Texas Automobile Dealerships Association, expressed his opposition to the increase in the sales tax
on motor vehicles, the repeal of labor exemptions in the auto shop and the payroll tax.

“The motor vehicle sales tax increase to 7.35 percent is the equivalent of a $440 million tax per year on Texas consumers.” He
also emphasized that the increase in the motor vehicle sales tax would make Texas among one of the highest sales tax rates in the
nation.

Others opposed the bill for different reasons. Lavine commented that the sales tax is a regressive tax that disproportionately hurts
the working poor. He also stressed that CPPP would prefer a personal income tax over the increase in the sales tax.

“Our basic problem with the bill… is that the only reason it exists is to cut the property tax,” said Lavine. “We do not think that it is
the most pressing need in the state of Texas… This bill does nothing to improve education infrastructure. It’s just a swap of one tax for
another.”

The committee passed the bill, voting 6-2, with all Republicans voting for the bill. Only one Democrat, Villarreal, voted in favor of
the amended HB 3. The bill will go to the House floor sometime next week.

http://www.texaspolicy.com/HB3

 

[SmarterThanYou]

BTW - love this signature!

 

[5stringJeff]

This is more detailed info, more of a report on the bill, that i can find.

The House Ways and Means Committee approved on March 2 a measure that would cut property taxes by one-third, create a
new payroll tax on Texas businesses, increase cigarette taxes by $1 and raise the state sales tax rate from 6.25 to 7.2 percent.

http://www.texaspolicy.com/HB3

I live in WA, where there is no income tax, and so we often face the same quandry: sales tax vs. property tax. While I can understand the desire to decrease the property tax, why not look at cutting programs, and therefore decrease the need for tax money in the first place?

Also, the article didn't quite explain what the current franchise tax is, but the proposed new tax is, quite frankly, a tax on wages, which hurts business owners and employees alike.

I would not vote for this bill. If they want to lower property taxes, they can raise sin taxes, or look to decrease spending, but raising taxes on business is a bad idea.

 

[ScreamingEagle]

I live in WA, where there is no income tax, and so we often face the same quandry: sales tax vs. property tax. While I can understand the desire to decrease the property tax, why not look at cutting programs, and therefore decrease the need for tax money in the first place?

Also, the article didn't quite explain what the current franchise tax is, but the proposed new tax is, quite frankly, a tax on wages, which hurts business owners and employees alike.

I would not vote for this bill. If they want to lower property taxes, they can raise sin taxes, or look to decrease spending, but raising taxes on business is a bad idea.

There's a huge difference in the tax rate for property in Texas v. Washington state. Texas charges about $24 per $1,000 value which is almost double WA rates of about $13 per $1,000 value. I can certainly understand their attempts to lower the Texas property tax especially as home values are increasing.

Both states have a similar high sales tax (over 8%).
Both states have no income taxes.

WA has a pretty hefty tax on businesses in the form of the B&O tax which comes right off the top gross. I don't know how it compares with business taxes in TX but in WA the B&O tax is second only to the sales tax in producing revenue. It accounts for about 46% of all taxes in this state. It is hard on many businesses as the tax must be paid from the gross right along with employee wages, etc. The tax also has a pyramiding effect as described in the following link: http://seattletimes.nwsource.com/news/business/taxes/botax_13.html
http://seattletimes.nwsource.com/news/business/taxes/bustax_121302.html

Also, since the real estate industry has been having so much success in recent years it is highly likely that many states will soon be increasing the property excise tax, a sales or transfer tax when a property is sold. Here in WA we currently pay 1.78% which on an average $325k home gives the state about $6,000. I've heard that many want to raise the excise tax to 2.5% which is a pretty hefty gouge on your equity. This would be a huge windfall to the states income.