HCN Reports
While the weather has been the big news locally, the Legislature has been in session in Austin. The big news this week are proposals that would cut $4.6 billion.
The following was part of State Sen. Robert Nichols’ weekly column:
Lt. Governor Dan Patrick and Senator Jane Nelson, Chair of Senate Finance Committee, held a press conference this week to announce three recently filed bills which would reduce the state’s property and business taxes by $4.6 billion. Senate Bill 1 will more than double the homestead exemption from $15,000 to approximately $33,500. This number will continue to increase as the price of the average home increases.
Senate Bill 7 would permanently reduce the rate of the business franchise tax by 15 percent, allowing businesses more opportunity to grow. The third bill, Senate Bill 8, would allow businesses with $4 million or less in annual revenues to be exempt from paying the franchise tax. This cut would provide relief to small and medium sized businesses across the state. I am a co-author on all of these bills and will work this session to ensure we are finding ways to provide tax relief for the people of Texas.
Not everybody agrees this is a great idea, however.
In a story by the Austin American-Statesman, Texans Care for Children CEO Eileen Garcia said:
“The Legislature shouldn’t take billions in revenue off the table while the state is shortchanging foster kids’ safety and cramming 25 or 30 pre-K students into some classrooms. Our Legislature’s responsibility is to make sure Texans’ needs are met before looking at giveaways.”
According to the Statesman article, the combined legislation would cut about $2.5 billion from education.
So what do you think about the tax cut plan? Is it the right thing to do?
Any taxes they cut is alright by me. The problem comes in, when they raise other taxes. Tobacco, gas and everything else, that you don’t notice too much. Sen. Kevin Eltife, R-Tyler, along with some democrats, are trying to increase the gas tax in Texas. I can’t say how many times the republicans have increased the tobacco tax. And I don’t care if you call it a “consumption tax” or not. A tax is a tax is a tax. And republicans should know this. How did taxes get so high in Texas? You should asked the 70+% republican in our state legislature. BTW, if this tax reduction bill doesn’t pass, I’d have to wonder why? I’ll be keeping track of this one.
Cut no taxes until all funds to education cut by Republicans in 2011 are restored.
This is ridiculous! The schools have been cut much too much. I also want to know, where had the lottery money gone? I want it published in all the papers. They plan to raise sales tax. That hurts the middle class and poor.