Posted on 10/19/2003 2:03:57 PM PDT by chance33_98
Shapiro: State income tax may be considered
By BRENT FLYNN , STAFF WRITER 10/17/2003
State Sen. Florence Shapiro told potential voters on Monday that everything will be on the table during a special session on school finance to be conducted in the spring, including a state income tax.
"Nobody said we won't consider a state income tax," said Shapiro, R-Plano. "It will be on the table."
Shapiro, chairwoman of the Senate Education Committee, made the statement to people who attended a panel discussion on school finance sponsored by the Texas Parent Teacher Association, Texas Education Crisis Coalition and the League of Women Voters of Richardson, Plano/Collin County, Dallas and Irving.
Everyone on the panel, which included Federal Reserve Bank of Dallas economist Jason Saving, Dallas Independent School District Superintendent Mike Moses and Richardson ISD Board Member Anne Barb, agreed that public education is underfunded by the state and the current school finance system needs to be changed.
Saving said the so-called "Robin Hood" system has resulted in an increase in equity of resources between rich and poor school districts during a period of rising student achievement across the board.
However, he noted that not only is the current system unfair to districts with more property - called Chapter 41 districts for that section of the law - by forcing them to pay an increasingly higher percentage of their property taxes to property poor districts, it creates a disincentive for districts to improve because any increase in their property tax base would mean less state funding for poorer districts and higher recapture payments for wealthier districts.
Saving, who considers himself conservative, said he has run the numbers every way possible and come up with the same conclusion.
"We need more money from somebody than we're getting right now and that's not going to be entertaining to watch in the Legislature," he said. "There will have to be higher taxes somewhere to get the extra money."
When asked how that money would be produced considering many legislators now in office campaigned on a platform of "no new taxes."
But Shapiro argued that pledge was only binding during the last legislative session. "The issue of no new taxes was specific to last session," she said. "That didn't mean we wouldn't raise taxes in the next session."
State Rep. Jodie Laubenberg, R-Parker, believes a state income tax will not be considered but that other proposals are possible.
Among them is expanded business taxes.
"There are lots of businesses in Texas that pay no taxes," said Shapiro. "We will be looking closely at every businesses' exemptions."
Saving said a modernization of the tax code is long overdue, not just for education but also to address how the state pays for all of its government services.
The challenge, he cautioned, is not to lose what has made Texas an attractive destination for talented professionals and multi-billion dollar corporations, namely, low taxes.
"We seem to be operating under the assumption that 100 percent of the new revenue must come from taxes," he said. "If the most important thing is education, then we should also be looking at cuts in other areas. That will lessen the extent to which we raise taxes."
Shapiro said she expects a special session on school finance in April or May of next year.
But Shapiro argued that pledge was only binding during the last legislative session. "The issue of no new taxes was specific to last session," she said. "That didn't mean we wouldn't raise taxes in the next session."
IOW, I'm paying nearly twice what I paid three years ago. That can't continue.
I don't want a state income tax, but these property taxes are driving people out of their homes, especially seniors.
Sounds like some changes are coming, Cathryn. ;-)
Some people just seem to know when to make their exit, don't they? ;-)
Some people just seem to know when to make their exit, don't they? ;-)
I obviously need to follow his lead. :-)
They and Perry just cut ten billion. The Social Services people are screaming about the handicapped kids being dropped from some services.
I don't know how much more there is to cut.
I think that these are the only states left without a state income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Washington, Wyoming.
Which do you prefer?
None here, yet - but it looks like it's coming.
We've had this talk before, it seems. ;-)
Gee...it vaugely rings a bell. ;-)
The money came from somewhere, not increased taxes.
It can when I'm the one ringing it. :-)
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