Stripper tax gets Senate OK

It gives a whole new meaning to "tax anything that moves"...the Texas Senate this afternoon gave fast and final approval to a new version of the so-called “stripper tax” that will collect an occupation tax on nude dancers.

Texas Gross Margins Business Tax is Grossly Affecting Businesses

In 2005, I authored a statement on the Texas gross margins tax while I was State Chairman of Young Conservatives of Texas, stating that the expanded franchise tax will give future Legislatures an additional avenue to generate revenue. The State Legislature in the Special Session in 2006 decided to expand the franchise tax into a gross margins tax.

There was fear among the Republicans in office, including Governor Perry, that there would not be enough revenue to cut property taxes while funding the necessary roles of Government. Low and behold, the State of Texas collected $10 billion too much in revenues ($10 billion budget surplus) before the Legislature convened in 2007. The citizens of Texas were taxed $10 billion too much in the 2006-2007 biennium, before the business tax even went into effect!

This is one section of the op-ed I authored in 2006:

In the past, the proposed solution to our problems has been to add additional taxes and spending and let a future Legislature find a solution that seems right for them 15 years later. YCT is the taxpayer watchdog of the future generation. The YCT leaders will be the leaders of public policy and in our communities in the future. Our concern with this tax plan is that it continues the precedent of allowing the government to continue to spend our tax money frivolously and resort to raising taxes as the only avenue for a workable solution. This is also concerning as there will be a new way for the citizens of this state to be taxed after this business tax is created. It will probably not be this Legislature, but in a future Session when the composition of the Legislature is less conservative, a tax increase may be likely and there is now a “third leg” to increases taxes on.

A recent survey conducted by the National Federation of Independent Businesses found some interesting facts about how small business owners will deal with the new business tax. The NFIB found that of those 790 business owners surveyed,

• 33% will not purchase new equipment or inventory
• 33% will not hire new employees
• 33% will not give out employee bonuses or raises

The survey also showed these results

• 50% will charge higher prices to the consumer
• 24% will be unaffected
• 20% will lay off or fire at least one employee
• 14% will cut health care benefits to their employees
• 7% will take out a loan to pay the tax
• 3% will go out of business

Tom Craddick Appoints Members to the Business Tax Advisory Committee

Speaker of the Texas House Tom Craddick appointed Representatives Warren Chisum (R-Pampa) and Myra Crownover (R-Denton) to the Business Tax Advisory Committee today. Lieutenant Governor David Dewhurst will appoint two Senators. Comptroller Susan Combs will serve on the Committee as will 14 Texas citizens.

The business tax was created in 2006 during the Special Session of the 79th Legislature. The goal of the business tax was to generate revenue so the State Legislature could buy down property taxes from local school districts. In reality, the Legislature expanded the existing franchise tax which Republicans fought for 15 years to remove from law after Governor Ann Richards signed it into law.

I would have preferred to have Representatives John Smithee and Ken Paxton as members of the Business Tax Advisory Committee as both of these fine men serve on the Ways and Means Committee and have studied this issue in depth. Also, both of these men voted against the expansion of the franchise tax.

It should be noted the bill (HB 3, 79S3) that expanded the franchise tax was passed 80-68, by a Legislature controlled by Republicans. The Republicans that voted against the business tax were:

Dwayne Bohac (Houston)
Carter Casteel (New Braunfels)
Linda Harper-Brown (Irving)
Will Hartnett (Dallas)
Harvey Hilderbran (Kerrville)
Charlie Howard (Sugar Land)
Bryan Hughes (Mineola)
Delwin Jones (Lubbock)
Bill Keffer (Dallas)
Jodie Laubenberg (Rockwall)
Ken Paxton (Frisco)
Debbie Riddle (Houston)
John Smithee (Amarillo)
Robert Talton (Pasadena)

Of these Republicans, Carter Casteel and Delwin Jones are RINO's and were voting against Craddick, not against raising taxes.