Why Texas should worry about heavy-handed government

There is no such thing as a free lunch. Lower state taxes have never been a free lunch.I remember watching the 2006-‘07 legislative session as a school board member — granted, I was much more naive then — but I believed our legislators were supporting public education and wanting to do what was best for all taxpayers.It made a flawed attempt at property tax cuts — and anyone involved in the fight then knew it. By compressing a school district’s maintenance and operations rate and forcing school boards to hold elections for tax increases, the Legislature could indeed boast of a $7 billion savings over two years.

The Legislature intended to supplant lost school revenues with funds generated through state business franchise taxes, also known as the “hold harmless tax.” However, there were predictable problems: The price of oil dropped as sales taxes declined. Small business’ dislike for the franchise tax led current lawmakers to cut this income.

 

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