Don't Repeal the TIF/ Think About the Future

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Dick Lavine /(512) 320-0222 x 101

May 22, 2007

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Yesterday the Senate Finance Committee voted out HB 735 by Straus/Williams, which would repeal the Telecommunications Infrastructure Fund (TIF) fee. Even after an expected floor amendment to delay the date of repeal, HB 735 is expected to reduce general revenue by $211 million in 2009 and $424 million in 2010-11. The full Senate is expected to vote on HB 735 by tomorrow. While the TIF was established in 1995 to finance telecommunications grants, it is now an important source of general revenue. Texas cannot afford to repeal any tax unless it is replaced by another source of revenue. What honesty in taxation really requires is the recognition that we have a hole in the budget and we should not make it any deeper.