Latest Tax-Shift Bill is Same Old Story: Raise Sales and Cigarette Taxes to Cut Property Taxes, Make Little Change in Business Taxes, Generate No New Money for Schools
Dick Lavine /(512) 320-0222 x 101
August 15, 2005
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This past Friday, the House Select Committee on Public Education Reform voted out the latest tax-shift bill (HB 8), which would once again rely heavily on raising consumption taxes to fund property tax cuts. The tax equity note confirms that this type of tax shift inevitably increases taxes paid by lower- and middle-income families, while benefiting only families with the highest incomes. A portion of any future increase in state revenue would be dedicated to cutting property taxes, crippling our ability to meet the growing needs of public education and health and human services. In addition, the new general revenue generated by the bill would grow more slowly than the property taxes it is intended to replace.