Tags: Texas | taxes | economy | cut | excess | funds

Expecting 'Excess Funds,' Texas Looking to Cut Taxes

Monday, 23 Jun 2014 09:36 AM

By Drew MacKenzie

Republican lawmakers in Texas are pushing for tax cuts as the Lone Star State is expected to have a cash surplus by the end of the year, the Dallas Morning News reports.

State Sen. Dan Patrick, the GOP nominee for lieutenant governor, has called for reductions in both property and business taxes. Attorney General Greg Abbott, the Republican nominee for governor, is pushing for a break from what he calls a "very unfair" state franchise tax.

The Texas Public Policy Foundation, which has been urging cuts in state spending, wants a two-year, half-penny reduction in the state's 6.25-cent sales tax, the Morning News reports.

But the newspaper pointed out that even though the Texas economy has been showing increased improvement in recent months, financial experts claim there is not enough money in state funds to slash property taxes while funding the state's roads and reservoirs.

"We've got more than enough money to fix one problem, probably enough money to fix two," said Dale Craymer, who heads the business-backed Texas Taxpayers and Research Association. "But we don't have enough money to fix all."

However, Patrick, who defeated Lt. Gov. David Dewhurst in the GOP runoff last month, said on election night, "The people of Texas have given us a mandate tonight to get property taxes lower."

Patrick's spokesman Logan Spence said the state senator is creating a special panel to help him make decisions on taxes, the Morning News reported.

"The whole tax structure of the state of Texas is on the table," said Spence, noting that the business franchise tax could even be repealed, without explaining where the $10 billion in lost revenue would come from.

Dewhurst recently declared that he plans to draft a bill this fall cutting school property tax rates by up to 25 percent, which experts say would cost the state about $10 billion.

The Texas Public Policy Foundation has called for the $4.2 billion of "excess funds" to be used to cut taxes. The foundation wants to reduce the state sales tax to 5.75 percent for two years, the Morning News reported.

Related Stories:

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

FBI Probes Powdery Substance Mailed to Franklin Graham Charity

Friday, 30 Jan 2015 22:56 PM

The FBI Friday said it was investigating a letter containing a white powdery substance that was mailed to the headquarte . . .

Report: FBI Had Secret Cold War Plan for Martial Law

Friday, 30 Jan 2015 22:45 PM

The FBI reportedly came up with a top-secret, though short-lived, plan for preserving national security in case of a nuc . . .

Americans Love Lower Gas Prices, but They're Pocketing Savings

Friday, 30 Jan 2015 22:26 PM

Americans are saving about $60 a month from lower gas prices - but they're not spending much of it. The Wall Street Jour . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved