A Lost Plan of Taxation
By Karl-Thomas Musselman
Latinos for Texas reminds us of the fact that Rep. Eddie Rodriguez of Southeastern Austin has his bills filed even in this special session relating to a State Personal Income Tax. This has of course be a "we don't say those words" issue for years in Texas, to the point where no one would dare file legislation or say the word to any press source.
This is one step, a small one, to getting the Legislature to consider more progressive means of taxation to solve the states problems. Currently, the only thing that either chamber can decide to debate is whether to jack up Texas's Sales Tax to near 10% making it the highest in the nation most likely, or how broadly to expand taxes on franchises or business partnerships, all in an effort to lower property taxes, and somewhere in that mix have it relate to Education Reform (which isn't the issue of the two driving the debate around the interlinked HB2 and HB3).
A short summary of what Eddie is offerings...
The legislation would abolish the Maintenance & Operation portion of property taxes for all homeowners and remove the possibility of it being reinstated. It also calls for a state-wide vote on the implementation of a low-rate State Personal Income Tax.
A Personal Exemption of $3,200.00 is allowed for every filer and for each dependent declared by that filer. This is the only exemption provided.
On all remaining income the rate of the tax is:
1 % on the 1st $25,000.00
2% on the 2nd $25,000.00
3.5% on the 3rd $25,000.00
5% on the 4th $25,000.00
6.5% on the next $50,000.00
7.0% on the next $50,000.00
7.5% on additional income (all income above $200,000.00)
In a press release last Thursday, Rep. Rodriguez said, “…the total tax on a family of four, with yearly income of $100,000.00, is less than two percent.” That amount would also be deductible on your federal income taxes
Posted by Karl-Thomas Musselman at July 1, 2005 01:17 AM
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It's about damn time.
Texans have long cherished the fact that this is an income tax free state, and getting people on board with this plan will be extremely difficult.
However, Dems need to find a way to help Texans to understand that as the system is currently, legislators are simply playing a taxation shell game, we feel good because we pay our taxes a little at a time, each time we make a purchase, or it gets incorporated into our mortgages, so we never have to write a big check to the county or the state, or watch it taken out in relativly large sums from our paychecks.
But if you look at the numbers, Texans need to be helped to understand that they are being nickle and dimed in an incredibly regressive manner in the form of Taxes.
An inocme tax would shift less of the tax burdon from the very poor, as well as give people a better idea of what they are actually paying in Taxes, I think if most people knew how much of their income actually went to state taxes, they'd be much more open minded about a state income tax.
