Tags: States | Without | Income | Taxes | Growing | Prospering

States Without Income Taxes Growing, Prospering

Tuesday, 10 May 2005 12:00 AM

For nearly a decade, Texas has been trying to deal with court orders to provide "equitable" funding for the state's school system.

With property taxes already sky-high, legislators have sought to generate new revenue for the school system with proposals for a boost in the sales tax, a business value-added tax, a 4 percent business-profits tax, a tax on cars, "sin" taxes on liquor and cigarettes – and what Lieutenant Governor David Dewhurst calls a "wage tax."

"A wage tax is of course a fancy disguise for a personal income tax, and imposing one is a sure way to put a state on the path to slower growth," the Journal says in an editorial.

"Texas' status as one of only nine states without an income tax is in serious peril."

A wage tax, according to one study, would cost Texas about 40,000 jobs. In Texas and other states under court orders, "equity" has become a code word for Robin Hood financing schemes that redistribute school funds, according to the Journal, even though a study last year found that the state's high-spending school districts are not more efficient in educating students than low-spending districts.

Brooke Rollins, director of the Texas Public Policy Foundation, opposes the wage tax and has suggested an alternate plan that includes broadening the base of the sales tax to many consumer services.

And Governor Rick Perry has vowed to veto any bill that would be a job-killer.

The Journal concludes: "In 2002 Texas voters gave Republicans control of the Legislature for the first time in 100 years on a pledge to keep government spending under control and maintain a pro-growth tax system. The Dewhurst plan violates both of those conservative principles and is the surest way to get the GOP thrown out of office."

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For nearly a decade, Texas has been trying to deal with court orders to provide "equitable" funding for the state's school system. With property taxes already sky-high, legislators have sought to generate new revenue for the school system with proposals for a boost in the...
States,Without,Income,Taxes,Growing,,Prospering
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2005-00-10
Tuesday, 10 May 2005 12:00 AM
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