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Editorial: Proposed Sales Tax Trades One Problem for Another

Texans are ready for lower property taxes, but maybe not for one legislative proposal to lower them. Legislators are considering a bill to increase the state sales tax and use the funds generated to cut property taxes. An editorial in the Austin American-Statesman notes that this option “…simply trades one problem for another.”

“We have yet to see any numbers showing the property tax savings for most families would be worth paying a higher sales tax on everyday purchases,” the editorial reads. The editorial board recommends legislators consider other funding possibilities, including applying sales tax to some services that are currently exempt, increasing the tax on alcoholic beverages, and reducing the portion of sales tax that vendors keep for their effort to collect and remit the money to the state. The state could also act to improve returns from the Permanent School Fund, the state’s public education endowment.

Read “Editorial: Legislature needs other paths to property tax relief,” Austin American-Statesman.

April 23, 2019