Ryan the Temp said:
VaterAg said:
PCC_80 said:
What bothers me is that the Dems/Libs for some reason want a State Income Tax when Texas apparently has a balanced budget, is actually trying to cut Property Taxes and has a full rainy day fund. We seem to have enough money to meet our needs plus a reserve.
I seriously doubt that Dems/Libs would be inclined to lower Property Taxes or Sales Taxes if they got a State Income Tax. So why do they think we need an income tax ? ?
I think libs would love to drastically cut property taxes in exchange for an income tax. Between a consumption tax, an income tax and a property tax, the property tax seems like the absolute worst, inherently unfair tax scheme we can contrive. I'm surprised it's survived this long in a state with so many fiscal conservatives.
Just for fun, I ran my income on a California income tax return and calculated property taxes based on my last HCAD appraisal using property tax rates in Los Angeles County. Turns out my overall tax burden would be LOWER under that model than it would be under the current property tax model in Texas (or at least it was at the beginning of this year).
I'm not saying Texas needs an income tax, but if you're a property owner, the Texas model is certainly not the best model out there.
This is why I said earlier a more balanced tax strategy can actually work better. The danger is that once you add a new tax vehicle for the government, the Democrats especially, will just use it to spend more on welfare and stupid ***** So, the very real danger is that your overall tax burden will just increase rather than getting a rebalancing especially in a more populous, diverse state like Texas.
I've shared this before, but our overall tax burden in New Mexico is way lower than Texas at least for us as retired / sole proprietor couple even after adding in the state income tax we have here. Our property taxes here are 50% of what they were in Texas for a house that is valued $300k more than in Texas. Our property insurance is 1/3 of what it was in Texas. We are saving many thousands per year by simply moving one state over even after applying New Mexico's state income tax which Texas does not have.
To be fair, comparing New Mexico to Texas is apples and oranges. If were both still working corporate, we would still be in Texas and that cash flow was such that I really didn't care at the time how much we were paying in Texas. But once that cash flow ends it becomes and unsustainable expense over time to live there because state funding is funneled through property taxes and you don't get the benefit of any offset from state income tax.