Friday, January 26, 2007

Legislators Shocked to Discover there's a New Tax!

Just like Captain Renault in Casablanca, Legislators were shocked, shocked to see the new margins tax show up in 2007. Confused Sprint customers received their bills which listed the new tax, and many were asking questions. In a report on Dallas’
WFAA, my own State Representative Jim Jackson, looking befuddled and bemused, told the reporter that he didn’t know how such a thing could have happened. As one of Representative Jackson’s constituents, my husband and I have been watching for our property tax reduction. We aren’t holding our breath.
Evidently, Sprint has decided that because of the looming tax bill imposed upon it by the Texas legislators, they need to start collecting the tax right away. Other businesses are no doubt considering the same thing. After all, they will owe the tax whether they make a profit or not. This environment of uncertainty is not good for business.
According to The Tax Foundation, one of the unintended consequences of gross receipts margins taxes is that companies in the same industry can experience vastly different tax rates. On the web site, www.taxfoundation.org, it says, “lawmakers are under constant pressure to levy different rates for different companies because of a lack of horizontal equity inherent in gross receipts taxes.” In Washington there are six different rates which vary by industry. In Kentucky, legislators are under pressure to lower the margins tax on retailers, who have been hit particularly hard by the year-old margins tax. Lobbyists will likely descend upon Austin to attempt to secure a preferential tax rate for their particular client. This new tax will cause nothing but headaches for businesses and higher prices for consumers. And Republicans wonder why our majority is shrinking.
Still, many Texans are unaware of the consequences of the gross receipts margins tax. When disgruntled business owners and customers to whom these taxes are passed on begin to experience the full impact of the new tax, it could get ugly. For those activists who worked to stop this punitive business tax during the last legislative session, and for the legislators who voted “No” on this tax bill, we have just one thing to say to our state senators and representatives who thought that this was a good idea: “Can you hear us now?”

12 comments:

Kay said...

This is only the beginning. Let's hope that the legislature will revisit this and repeal the margins tax!

Anonymous said...

I wish the legislators were as smart as you. We should drop them like a bad connection. Then maybe they would hear us. Keep up the good work.




Skip in Midland

Anonymous said...

I like your style. How can we get others like you in leadership positions with the Rebublican Party?



Worried in Houston

Anonymous said...

Great Blog. This looks like the beginning of a new friendship.




Rick

Anonymous said...

Well put, Denise!

Keep up the good work!

Mark Cole
Magnolia, Texas

Anonymous said...

I like your informative methods. Thanks for the time you spend.

When will the Republican Party (Texas and National) really wake up to the facts?

justhink'n said...

"Legislators were shocked, shocked "
could this really be true? It seems the ones we put into office have again been outsmarted by the lobby! . . .or, maybe not!

Bill Metzger said...

Denise you are on target. We the grassroot workers worked hard to get a republican majority only to be sold down the river with higher taxes and a fake property tax cut. If we (the conservative republicans) do not stand up and elect people who are not going to cave in we can only expect more of the same. Lets hold our republican leaders to the party platform, and we will see the reward in the next election when the differences between republicans and democrats will be evidently clear. thank you for representing the conservative part of the republican party.

Anonymous said...

Right on Denise! Keep up the heat on legislators this session.

Fiscal Conservative said...

What are they thinking by passing a new tax? They are completely disregarding our platform. This will definitely come back to bite them...

Anonymous said...

Why is anyone surprised!




Frustrated in Ft Worth

Anonymous said...

Great article. I heard on the news that Nextel refuses to remove the tax. The legislator's are glad to complain into the cameras while sitting around and doing nothing about it. When are we going to learn that our politicians are in it for themselves.