Get ready; there is a considerable movement to raise your Texas taxes. But watch out, just as I predicted to you months ago, it will be done in a manner designed to fool the inattentive and the ignorant into thinking it’s something other than a tax increase on them.
From the Dallas Morning News editorial page, about balancing the next Texas budget: “The first leg involves using some money from the state’s… Rainy Day Fund. The second involves raising revenues through closing exemptions in the state’s sales tax and reconsidering the rate on its franchise tax. And the third is deriving savings from painful budget cuts.”
You will not find me opposing what they call “painful budget cuts” but, pay great attention to this line: “The second involves raising revenues through closing exemptions in the state’s sales tax and reconsidering the rate on its franchise tax.”
As to the franchise tax, note that raising the rate, or lowering the payment threshold, is a direct tax mostly on small business in full Obama and DC-Democrat style. Doing so will only exacerbate business failures and higher unemployment in Texas. Such would be foolish to say the least.
And learn this: Spenders love the phrase “removing exemptions” because it leads people to think some fat-cat does not have to pay taxes on something everyone else does. In reality, removing sales tax exemptions is directly raising taxes on all Texas consumers by taxing things not currently taxed, such as groceries.
Don’t be fooled; don’t let the Democrats and RINO’s turn Texas into California.
Robert Pratt is host of the top-rated Pratt on Texas radio program which can be heard at www.PrattonTexas.com
