Proposals to eliminate property taxes using the sales tax are gaining steam, but even among supporters there is aÂ common misconception. Some believe the proposal would cause the sales tax to rise to confiscatory levels.
Sure,Â liberals like to make that claim, and the media echoes it. It just ainâ€™t right, though.
There are many ways to eliminate the property tax with almost no change in the sales tax â€“ rate or base. My friend Bill Keffer (a former state rep now seeking to reclaim his seat in the Lege) has calculated simply applying conservative budget surpluses to property-tax elimination would kill the school property in less than 18 years! The state’s surplus — and general revenues –Â is generated almost entirely by sales taxes.
You can also doÂ a few creative things on top of that, which would make the tax could go away even sooner.