Perry Ready to Cut Taxes We Haven't Collected

by: Phillip Martin, Progress Texas

Fri Oct 27, 2006 at 10:47 AM CDT

At least some of those funds, the governor insisted, should be used to provide additional property tax relief and trim the rate of the new state business tax that goes into effect in January 2008. The tax is now set at 1 percent of adjusted gross receipts for most businesses, and half a percent for wholesalers and retailers.

"I don't see how we can lower the business tax rate when we haven't even begun collecting it yet," said Senate Education Committee Chairwoman Florence Shapiro, R-Plano, noting that collection of the business tax won't start until 2008.

But it's the other half of that new Perry campaign speech that makes absolutely no sense. He says he'd like to roll back the rate on the new business tax. Yes, that would be the same tax just hammered out to help fund Texas schools. Simply unbelievable.

The ink's hardly dry on this tax, which was approved in May – after four excruciating sessions – as a way to shift about a third of the funds for schools from local property taxes to Texas businesses...

This particularly galls us because we recommended Gov. Perry for re-election partly as a result of his helping legislators – admittedly, in the final days – solve the school funding crisis. No, he's backing away from what was a step forward.