Shapleigh wants Perry-Sharp tax panel to look at state income tax
October 3, 2005
Senator Shapleigh travels the state discussing alternative school finance options, while the Governor's committee hashes through old options.
Written by Steve Taylor, Rio Grande Guardian
McALLEN - A border lawmaker believes a tax panel set up by Gov. Rick Perry and led by former Comptroller John Sharp ought to be allowed to consider a state income tax.
State Sen. Eliot Shapleigh, D-El Paso, questioned whether the "failed priorities of the special sessions will plague this committee as well." In the past, Perry has told legislators that all options on the table as a means of reducing property taxes - except for a state income tax.
"During the session, state leaders set the priority as tax cuts," Shapleigh said. "The priority needs to be providing our children a 21st Century education so that they can compete for a good job in the 21st Century economy. If great schools are a priority, then an income tax is the only way to get there."
On Thursday, Shapleigh gave two presentations of his "A New Texas: Invest in Kids, Invest in Our Future" school finance plan. In the morning, Shapleigh spoke to Professor Gregory Rocha's Political Science Class at the University of Texas at El Paso. In the afternoon, Shapleigh spoke to El Paso's Downtown Rotary Club.
During the presentations, which Shapleigh has given to numerous groups around the state, audiences are asked to consider the various tax options available to raise revenue for Texas' schools. Each time, the audiences end up choosing the income tax by a large margin.
The Texas Constitution requires that any income tax proposal needs to be approved by voters, with two-thirds of the revenue generated going to property tax relief and one-third to education. Any increase in an income tax would also have to be approved by voters.
In his presentations, Shapleigh uses the income tax model in place in the state of Kansas. Under this model, anyone earning less than $21,000 a year would not pay a state income tax. If adopted in Texas, the tax would raise 34.6 billion. Of this $23.1 billion would go to reducing property taxes by 90 percent, with the remaining $11.5 billion going to public education.
"70 percent of Texans would be better off," Shapleigh said. He said that along the border, the figure would be higher still.
Shapleigh said the two El Paso groups he spoke to Thursday represented the diversity of audiences around the state that have overwhelmingly supported his tax proposals.
"People on the street are ahead of politicians in Austin. Fifty-five percent would vote for an income tax if it went to education and lowered property taxes," Shapleigh said. "If you use the sales tax as a go-to tax, nine in ten get tax increases. With an income tax, we can lower school property taxes by 90 percent, pay teachers at the national average and fund early education."
When the tax panel was announced last week, Sharp said he was looking forward to traveling the state to get feedback for the Legislature.
"The governor's asked us to go to one end of the state to the other, educating the public, including business leaders, school personnel and everybody on what's in the tax code ... to try to build the support from there so it would be easier for the members of the Legislature to come to a consensus of the majority on this issue," Sharp said.
This summer, Perry called two special legislative sessions on school finance. Both ended in failure. The Texas Supreme Court is currently considering a lawsuit brought by hundreds of school districts opposed to the current school finance system.
"I'm asking someone who doesn't have a vote in this building, but who has years of experience in navigating the maze of tax law all over this state, through the halls of this building ... to lead a new effort to make our tax system fair, more modern and more productive," said Perry, when he announced Sharp's appointment to the panel.
Shapleigh said the tax plans backed by the leadership in Austin during the special sessions would have increased the funding gap between property poor and property rich districts by hundreds of dollars per student.
"Under House Bill 2 and 3, nine in ten pay more for less, so one in ten can pay less for more. Texans elected us educate every child and leave no child behind. We can and must do better," he said.
A Scripps Howard opinion poll released earlier this month showed support for a state income tax was evenly divided among Texans. Some 45 percent supported an income tax, 47 percent did not and 8 percent were undecided.
When only Republicans were asked, 35 percent supported the income tax and 57 percent opposed. Among Democrats, 60 percent were in favor and 31 percent against. Independents were evenly divided at 48 percent.
The telephone poll of 1,000 Texans was conducted Aug. 22-Sept. 3 by the Scripps Research Center. It has a margin of error of plus or minus 3 percentage points.
Shapleigh said he would be giving his presentation in five other cities over the next 15 days.
"Our 21st Century Texas Education Excellence tour is to make the debate about children and an educated workforce," Shapleigh said.
"Texas is 50th, dead last in graduation rates, 48th in average SAT. Our children are our greatest asset; but our greatest challenge is to deliver on the promise of a 21st century education, so that each child can compete for the new knowledge jobs of the global economy."
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