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Tax Bill
On March 14, 2005, Betty Brown voted for HB
3. Here is how she described it to constituents in her Legislative Update (6/29/05):
"HB3, the funding
mechanism for HB2, passed on Monday night, and represents the largest property tax cut in Texas history. The tax cuts
are offset by government efficiencies and budget cuts, reforming the franchise tax, increasing the sales tax, and adding a
$1 tax on cigarettes, making HB3 revenue neutral. It cuts school property taxes by one-third, which translates into
a savings for Texas taxpayers of $5.4 billion. HB3 protects and enhances job creation by reducing the crippling burden of
property taxes and reforming and simplifying state taxes."
However, when Betty Brown says something,
it is best to double-check. Here is what the Young Conservatives of Texas said about the same bill:
"The
Republican-led Texas House of Representatives has taken a big step toward doing what Democrats could not do in over 120 consecutive
years in power – enacting a virtual state income tax. For many years, Texas Republicans advocated fiscal
restraint, and their opposition to a state income tax was axiomatic. Those days are long over, and Speaker Tom Craddick (R-Midland)
is to blame.
"This session [2005], the House
Leadership led by Speaker Craddick is dumping billions of new wasteful spending into the state budget. Fiscal restraint is
off the table. What is on the table is a new way to take money from the people, which will constitute a net tax increase
for most Texans."
Obviously, the Young Conservatives' assessment of Betty's tax
bill is different from what she told her constituents back at home. And they were not alone in their criticism.
Consider what the Texas Public Policy Foundation, a conservative thinktank in Austin, had to say:
"Unfortunately,
House members who put their reputation on the line to vote for this enormous tax bill will soon realize what became obvious
almost immediately: no one will remember the property tax cut, only the vote to tax small business through a hidden
income tax and increase the sales tax to the highest rate in the nation.
They didn't stop there:
"One has to admit that House Bill 3, which passed 78-70, is indeed historic. The Republican-led Texas House
of Representatives accomplished something Democrats have wanted to do for decades, but could not. The state of Texas now has
an income tax. Defenders of the bill said it was not an income tax, but a payroll tax, or a “Reformed Franchise Tax,”
then it became a “compensation tax.” Now we have a “basket” of taxes from which business owners may
choose. One thing is certain, the new scheme is sure to make basket cases out of Texans trying to do their taxes next year."
And the one-third property tax cut Betty used to justify the increase in business taxes? Unfortunately,
our property taxes are not going to go down nearly that much.
On August 16, 2007, The Monitor
reported that Betty had listed "reducing school property tax for homeowners by one-third" as an accomplishment of
the last legislative session.
Eight days later, Betty's legislative update (Aug. 24) said something entirely
different:
"Because of the actions by the legislature to reduce the burden on taxpayers for financing
the costs of education, I want to provide some clarity on how the tax rate is determined and how your property taxes will
be changing. It is important to remember that everyone should see a reduction in Maintenance & Operations (M&O)
rates, but not necessarily overall property tax bills due to the increase in property appraisals."
The
truth comes out eventually. The problem is that one cannot expect the truth--the whole truth--to originate from
Betty Brown.
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