Friday, April 09, 2004
Raising the Price of Sin
Two weeks ago at the District GOP Convention, Gov. Rick Perry pledged that the state would not increase property taxes. Yesterday he reiterated that pledge and announced how he intends to do so.
The plan:
The goals of the Perry plan, which will be on the table when he calls lawmakers into special session at an unspecified date this month, are reduced property taxes, more money for public schools and an end to the so-called Robin Hood plan under which property taxes from districts with high property values relative to their student enrollment are shipped to districts that have lower property values.
Good. I never agreed with state-sanctioned socialism to begin with. But the plan also begs the question: how does the state make up for lost revenue from the property taxes -- without instituting a state income tax, which Perry also opposes.
Other parts of the $7.1 billion plan, as noted in the article:
-$2.5 billion would come from an additional $1-per-pack levy on cigarettes.
-$714 million through 2007 by rewriting an exemption that allows many businesses to avoid paying the franchise tax.
-$172 million through 2007 by shutting down the system that allows buyers and sellers of used cars to cut the tax hit by lying about the sales price.
-$90 million through the next biennium would be raised through the proposed $5 tax on admissions to "adult entertainment" venues featuring live entertainment.
The plan raises some questions about whether or not these tax hikes will raise the expected money. But if the alternative is a state income tax, then I'd rather see how this works.
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The plan:
The goals of the Perry plan, which will be on the table when he calls lawmakers into special session at an unspecified date this month, are reduced property taxes, more money for public schools and an end to the so-called Robin Hood plan under which property taxes from districts with high property values relative to their student enrollment are shipped to districts that have lower property values.
Good. I never agreed with state-sanctioned socialism to begin with. But the plan also begs the question: how does the state make up for lost revenue from the property taxes -- without instituting a state income tax, which Perry also opposes.
Other parts of the $7.1 billion plan, as noted in the article:
-$2.5 billion would come from an additional $1-per-pack levy on cigarettes.
-$714 million through 2007 by rewriting an exemption that allows many businesses to avoid paying the franchise tax.
-$172 million through 2007 by shutting down the system that allows buyers and sellers of used cars to cut the tax hit by lying about the sales price.
-$90 million through the next biennium would be raised through the proposed $5 tax on admissions to "adult entertainment" venues featuring live entertainment.
The plan raises some questions about whether or not these tax hikes will raise the expected money. But if the alternative is a state income tax, then I'd rather see how this works.
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