Finance Committee approves payroll tax

[NoPasaran]

Think of it as a rough draft.

The committee of the Texas House with the first shot at cutting property taxes and overhauling the state's Byzantine school finance system Saturday approved a 372-page bill, and companion legislation calling for a constitutional amendment, that would lower school property taxes about 30 percent and replace them with other tax dollars.

The bill, the House number-crunchers say, also would funnel about $1.35 billion of new money into Texas public schools annually and leave 20 or so of the state's 1,041 school districts in the position of having to share money with needier districts. All school districts would get at least 2 percent more in state and local tax financing in the 2005-06 school year.

-snip-

Despite his yes vote Saturday and his support of the gambling initiative, Rep. Mike Krusee, R-Round Rock, has problems with a new state payroll tax in the bill that would charge employers 1.25 percent of employees' wages or $500 annually for each worker, whichever is less.

-snip-

If the proposal to legalize slot machines at racetracks and three Indian reservations dies, and with it that $1.5 billion in annual revenue, then a higher payroll tax or other business taxes might gain momentum. The leaders of the Senate, who are biding their time while the House authors something to send to them, have indicated a preference for overhauling the state franchise tax or creating yet another business tax

-more- http://www.statesman.com/news/content/shared/tx/legislature/04/2finance.html

Nothing like a payroll tax to discourage businesses from hiring new workers and keeping the wages of those they do have low.

Ron Wilson was the only Democrat to vote with the Rethugs on this. I'd like to personally thank the voters of Houston for defeating him in the primary.

[SharonAnn]

1. And wealthy people, without "wages" won't have to pay it.

We should keep going this way with all our tax systems. That way, people who actually work will pay all the taxes and the wealthy will never have to pay for any.

[NoPasaran]

2. And while we're at it

Let's do away with their property taxes too, the poor dears! .

[cosmik debris]

3. Tax the poor, maybe they will go back where they came from

Even wealthy people with wages will have a $500 per year cap. The property tax cut will give them all that and more so that the wealthy will come out way ahead on this one. Surprise, Surprise!