Tuesday, September 18, 2007

No Property Taxes?

Genius Texas Republicans, looking for ways to ensure that Texas remains a fiscal backwater, are now proposing that the state do away with property taxes in favor of raising the sales tax statewide. Vince at Capital Annex explains why this isn't a good idea:

It is almost unbelievable that even Texas Republicans would think this is a wise idea. Of course, they’re taking their cues from John Colyandro who is, of course, the indicted former Texans for a Republican Majority Leader head.

Texas already has one of the most regressive tax systems in the United States. And, we all know that a sales tax is the single-most regressive kind of tax you can have.

If you really want to eliminate property taxes entirely (which I think may be almost impossible without a total revamp of the tax system), then why not an income tax?

In states with small personal income taxes combined with small property and small sales taxes, citizens face–overall–a far less steep tax burden than they do in Texas.

"Overall" is an important caveat. In fact in states with an income tax, wealthier citizens will face an increased tax burden. Of course, I find that small price to pay so as to avoid having to read about the number of uninsured children in Texas or the low quality of our schools, but Republicans clearly feel differently. Citizens of Texas would do well to remember however that you get exactly the government you pay for.

UPDATE: At least Texas Republicans aren't as Earth-shatterlingly stupid as Mississippi's Republicans, proponents and defenders of a freaking "grocery tax."

1 comment:

adam said...

I don't think it'll pass, but I wouldn't be too shocked if it did.