Flynn Report: April 20 2015 Facts about the House Tax Relief Plan

April 20th, 2015                                                                                                                                  imagejpeg_0

Greetings Friends, Constituents and Supporters:

You may have received information attacking the Texas House tax cut proposals. Much of it is misleading and a distortion of the House’s efforts to provide tax relief for House District 2 and all Texans. Here are the facts:

  1. The Texas House is offering the largest tax cut ($4.9 billion) on the table, larger than the $4.4 billion version passed out of the Senate. The proposal was voted out of the House Ways and Means Committee today.
  2. The House plan is the only proposal that provides a tax cut to everyone – every individual benefits, and so does every employer.
  3. The Senate plan doesn’t provide one cent in property tax relief to businesses and will not help you every time you go to the store and make a purchase and they have not told Texans why.
  4. The House plan is a permanent tax cut. It provides a larger reduction in the business franchise tax than the Senate plan, and a major reduction to the state sales tax. The only way to undo this tax cut is by a vote of future legislators. The Senate plan only provides temporary tax relief that will be eaten up by rising appraisals and has been done before and did not provide the tax relief as promised.
  5. The House plan creates more economic activity, a stated goal of Governor Abbott and at this time, he has not taken a position between the two plans.

 

The Texas House tax cut provides more relief than the senate version where every individual and business taxpayer will benefit because every taxpayer pays the sales tax. The Senate does not provide a dime in property tax relief to businesses, and the Senate does not cut the property tax rate one cent-they only shift the tax burden onto businesses through an increase in the homestead exemption.

The House tax cut plan offers permanent tax relief whereas the Senate plan offers temporary relief, only to homeowners, that will quickly evaporate as property values and appraisals increase and raise rates again. The House plan benefits every individual and every business unlike the Senate which plans to keep the state in the business of picking winners and losers.

 

 

While some were attacking the Texas House others were applauding the House on tax relief in the newspapers. They said, “’We are beyond excited that we have got the two chambers and the governor having a discussion about who can give the biggest and the best tax relief.’” They even applauded Chairman Dennis Bonnen, the sponsor of House Leadership’s tax proposals, for additional praise, stating, “‘If anybody’s up to doing a lot of work, it’s Bonnen.’”

 

Other recent headlines concerning the House tax cut make it clear the House is acting to provide major tax relief:….

  • Business Groups Praise House Sales Tax Cut Plan (Texas Tribune – April 14, 2015)
  • House has better ideas on tax cuts (Fort Worth Star Telegram – April 14, 2015)
  • Bonnen’s $4.9 Billion Tax Cut Plan Targets Sales Taxes (Texas Tribune – April 8, 2015)
  • House’s proposed sales tax cut a Texas first (Dallas Morning News – April 8, 2015)
  • Bonnen presents $5 billion tax cut bill (The Facts – April 9, 2015)
  • House leader proposes tax relief (San Antonio Express-News – April 8, 2015)
  • Texas House panel taking input on tax cut plan (Austin Statesman – April 14, 2015)
  • Texas House unveils $4.9 billion tax cut package (Austin Statesman – April 8, 2015)
  • Tax Relief Advances in House (San Antonio Express-News – April 16, 2015)

Governor Abbott specifically has not taken sides concerning which proposal he prefers. The Dallas Morning News writes, “Abbott said his priority is to lower taxes to promote job growth, whether through reducing property taxes, sales taxes or both.”

While some are spinning to make you believe the House isn’t acting on “tax relief measures championed by Abbott and Patrick”, the fact is the House is acting on a larger tax cut than the version in the Senate and the House plan actually helps working people.  Some are praising the House on tax relief in the papers and others slamming the House on tax relief in the mailbox. I will always be for supporting the everyday Texan in our district and I will not ever support the wealthy individuals that support front organizations that stand to profit from the Senate tax scheme.

 

It remains my pleasure and honor to represent all the people of House District 2. My staff and I continue to welcome your input and your questions. You can contact our office; mailing address: P.O. Box 2910, Austin, TX 78768. Email: District2.Flynn@house.state.tx.us. Phone Number: 512-463-0880

May God continue to bless you and the Great State of Texas!

Dan Flynn, State Representative, District 2