Rick "The Hair" Perry's Tax Plan Fails The Smell Test

[Nbadan]

June 23, 2005, 12:59AM
Perry's plan helps rich at others' expense
A Chronicle analysis shows wealthy would save, but renters would pay more
By R.G. RATCLIFFE
Copyright 2005 Houston Chronicle Austin Bureau

AUSTIN -

Gov. Rick Perry's plan for property tax relief would provide a windfall for the wealthiest families in Texas, but for lower-income renters the governor's plan would be a financial drain on the family budget, a Houston Chronicle analysis showed. And after more than a year of legislative wrangling over property tax relief, the tax savings for the median family in Texas would amount to about $150 a year under Perry's plan — a savings of about $12.75 a month.

The real winner of the school property tax cuts would be business, which pays about 54 percent of all the school property taxes in Texas.

(snip)

House and Senate plans that died during the regular session had sales tax levies similar to the governor's, hitting the state's poor the hardest for the benefit of the wealthy.

The official Legislative Budget Board analysis of a tax plan the House Ways and Means Committee is taking up today says the plan would increase the overall tax burden for all but the wealthiest Texans. Families with an annual income of more than $100,000 collectively would receive a $351 million-a-year tax cut, while everyone else's taxes would go up a collective $935 million.

(snip/...)

Why am I not at the least surprised?

[SWC Bonfire]

I'll take Dan's $150 if he doesn't want it...

I don't mind paying some for schools. Nobody does. But it's not fair when I have to pay out the ass and a family with 10 kids living in a rent trailer pays jack, as in $0.00. Even a very small contribution from these families would bring substantial $$ into the school systems.

I also don't want to pay a superintendent 20 x what a teacher makes unless they can prove that they will save more money than their salary.

We need fairer distribution of the burden of education, and more accountability for funds and efficient use of them. Unfortunately, there is a reason that the Texas Legislature meets only like 80 days every two years... they are inept and just screw things up. Our governor isn't helping... I'm surprized he even had the idea to cut business taxes, and that he hasn't tried yet to swap all of Texas to somebody for a personal/political favor.

[Mr. Ash]

But it's not fair when I have to pay out the ass and a family with 10 kids living in a rent trailer pays jack, as in $0.00. Even a very small contribution from these families would bring substantial $$ into the school systems.

To be fair, anyone who is renting is still paying "trickle down" property tax. Landlords will absolutely adjust rent based on expense, be it capital interest expense or tax expense. They have to park that "rent trailer" somewhere.

I also don't want to pay a superintendent 20 x what a teacher makes unless they can prove that they will save more money than their salary.

Agreed, preferably much more than said salary.

[SWC Bonfire]

To be fair, anyone who is renting is still paying "trickle down" property tax. Landlords will absolutely adjust rent based on expense, be it capital interest expense or tax expense. They have to park that "rent trailer" somewhere.

Compare the taxable value on a dilapidated single-wide rent trailer to a nice 3/2 home. Yes, people who live in apartments/rentals do pay some taxes via their rent. But appraisals for multi-family apartments are probably too low, and should be based on current occupancy rather than some average occupancy. I would say that apartment occupancy in non-collegiate areas skews to families that have more children of school age, maybe someone has hard numbers supporting/disproving that.

[Vashner]

His plan sucks...

[Mr. Ash]

Compare the taxable value on a dilapidated single-wide rent trailer to a nice 3/2 home. Yes, people who live in apartments/rentals do pay some taxes via their rent.

They pay all of the tax for that property. I promise landlords do not ignore that expense or even part of it.

But appraisals for multi-family apartments are probably too low, and should be based on current occupancy rather than some average occupancy.

Tracking "current occupancy" as a method for multi-unit property appraisal would be tricky and probably add more to administrative overhead than it would revenues. I agree with you that there can be serious imbalances in that figure, though.

Don't get me wrong, as a person significantly invested in real estate, I'd love to see a more equitable method for acquiring this state revenue, but I don't think the current system was ever intended to be "fair" about it. I'm not sure there is a real equitable solution without a state income tax - or some sort of individual return - and I have no desire to see that.

[Nbadan]

[SWC Bonfire]

But we'll be stuck with Karol Keeton "Hogwash" Rylander/Strayhorn.

[Swishy McJackass]

Not if you support Kinky Friedman!!

YEAH!!!!!!!