Aargh!!!!

More on this in the regular Monday column, but today the Texas House of Representatives passed HB3, Speaker Craddick's tax deform law, by a vote of 73-68. All but one Dem voted against, though there are actually 2 villains. Again, more on that later. The major negative feature of the bill is that it raises the state sales tax by 1%. This is a very regressive tax that hits the poorest hardest because low and middle income people spend a much greater proportion of their income on taxable items than do wealthy people.

In exchange, the cap on school district property taxes will be lowered to $1 per hundred valuation. If your school district is already maxed out, this will lower your school district property tax by 1/3. If your district isn't at the maximum, though, the benefit will be less. Again, the largest benefit of this change will go to those with high-value property.

Beyond that, as a result of HB2, the school finance law that passed the House last week, the schools get virtually no new money (and it may soon be net negative because of inflation and new mandates). According to Rep. Jessica Farrar (D-Houston), HB2 will very likely be altered in the Senate. Meanwhile, please call the offices of Rep. John Smithee (R-Amarillo, 372-3327), Rep. David Swinford (R-Dumas, 374-8787) and Sen. Kel Seliger (R-Amarillo, 374-8994). Note both Smithee and Swinford supported HB2. Seliger has yet to vote on it. Please do not be rude, but tell them you do not support this change in tax policy, and that you plan to vote on this issue at the next election. Leaving your name is optional. If they give you a reason for their vote or any other response, please share it with us.

DEMOPHOENIX