Tax Equity

Submitted by MQSullivan on Tue, 11/06/2007 - 8:33pm.

More than two dozen members of the Texas Legislature are calling on Congress to maintain the sales tax deduction for Texans on our federal income taxes. Unless Congress acts, we'll again lose this important protection.

For many years, only people living in states with income taxes could deduct their tax load from their federal burden -- effectively forcing Texans and the residents of eight other states to pay higher burdens. (An income tax is the worst possible revenue source for government, as every economist worth a warm cup of spit knows. Former Fed Reserve Chairman Alan Greenspan said as much in one of his final testimonies before Congress a few years ago.)

When sales tax deductibility was restored a few years ago, the Texas economy got an immediate, demonstrable boost, according to these members, with some $700 million staying in the Lone Star State.

(Read their letter.)

Signing the letter were:
Wayne Christian
Ken paxton
Bill Callegari
Dan Flynn
Linda Harper-Brown
Leo Berman
Frank Corte
Dan Gattis
Kelly Hancock
Patricia Harless
Will Hartnett
Bryan Highes
Phil King
Geanie Morrison
Corbin Van Arsdale
Charlie Howard
Jim Jackson
Thomas Latham
John Otto
Dan Patrick
David Swinford
Jim Murphy
Tan Parker
Larry Taylor
Beverly Wooley
Bill Zedler
John Zerwas

Tax Equity

While I totally agree Texas sales taxes should be deducted from federal returns, the following portion of the letter really irritated me:

"These increased tax revenues contributed to the State's revenue surplus that has allowed the State Legislature to provide property tax relief to Texas homeowners and businesses".

This statement is a bald-faced lie. Every effort to provide property tax relief to overburdened Texas home and business owners has been met with heavy duty resistance by nearly all of our legislators. The State government is sitting on a huge surplus, but will allow none of it to filter down as property tax relief because they say they "might need it for other things one day".

In 1996 my property tax bill was $1815.00. This year it is $3104.00. Even with a homestead exemption, our taxes are rising several hundred dollars each year and our evaluations are rising at unprecedented rates. Most of this increase has come about during the past couple years when the State surplus has been at its highest.

I question the intentions of the people who signed this letter. While perhaps they do have good intentions, I question their real motives. It's more likely they want to maintain the sales tax deduction so they can have more money for their surplus to spend on whatever they want, because the taxpayers are sure not benefiting from it.

I'm getting very sick and tired of our elected officials living in some dream world that allows and encourages half-truths or no truths at all.

Paying the income tax...

I wholeheartedly agree with you that what you pay in sales tax should be exempted from double taxation. And for those who don't have the stomach to confront the IRS leviathan, or who still believe that a direct, unapportioned tax on your private-sector compensation is lawful and Constitutional, you can ignore what I'm about to say.

I haven't paid a penny in federal income taxes since 1999, because I have no "income." I have earned private-sector remuneration and compensation, but none of those payments meet the statutory definition of "wages," nor the Supreme Court's definition of "income." If you would like to know more about how to keep your property, visit www.losthorizons.com.

Blessings,
-Alan

Taxation Equity

While looking ater the "common taxpayer" and attempting to get some minor form of added tax releif, legislatures continue to ignor "Taxation Reform" that would completely close the loopholes that have created so many "shelters & tax escape" clauses at the national level.

While it may sound like a worthy battle and it is "politically well worded" letter. I don't see that any of this "direct tax safings" is being reinvested into actual 'reductions' of taxes of the citizens of the state. While it may have been a Plus to the State Coffers and General Account, It did not actually decrease spending or taxes. But Actualy the state debt is growing, even though there is a "unspent surplus" in our states' accounts.

Trying to say that this "Tax Releif" is or will continue to be a direct 'direct economic boom' for Texas and will allow the state to further reduce our Taxation through property taxes or other means is a flat out-right lie. If the State Congress can find a way to safe a dollar in taxes on Texans, it will not prevent (or reduce) them from "borrowing" (through Bonds) rather the budgeting what revenue they do get.

I am all for Fairness in Taxation, from the lowest paying income to the richest man ... without undue exception or shelters ... the IRS is in need of Serious Reform and Capitol Gains should be justly taxed as Income, or as an Alternate/Additional Income. Why should an investor or speculator be allowed to be taxed at a lowere rate than some one else doing somewhat equal work for the same hours, while the investor makes a better income and is taxed far less? Mr. Buffett seems to be asking that same question lately.