Bring Balance To Texas Taxes

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A quick analysis of how sales, property, and income taxes impact low- to moderate-income Texans and what opportunities we have to better balance our tax system.

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  • Using the data in your work: Reports and presentations Needs assessment portions of grant applications Promote Awareness in Community Program planning Create and evaluate public policy
  • Here you see how regressive: the family in the bottom quintile has a much higher tax rate (as a % of income) than does the family at the other extreme. More than 2.5 times as much of their income goes to state/local taxes. “Services funded by poor people will be poorly funded.”
  • Using the data in your work: Reports and presentations Needs assessment portions of grant applications Promote Awareness in Community Program planning Create and evaluate public policy
  • Texas Has High Sales and Property Taxes Because It Has No Income Tax
  • Using the data in your work: Reports and presentations Needs assessment portions of grant applications Promote Awareness in Community Program planning Create and evaluate public policy
  • Using the data in your work: Reports and presentations Needs assessment portions of grant applications Promote Awareness in Community Program planning Create and evaluate public policy
  • Bring Balance To Texas Taxes

    1. 1. Bringing Balance to Texas Taxes Lonny Stern, Outreach Director 512.320.0222 ext 107 [email_address]
    2. 2. Who pays the most taxes? <ul><li>Rich? </li></ul><ul><li>Middle Class? </li></ul><ul><li>Poor? </li></ul>
    3. 3. Those with the Lowest Income Pay the Most in State and Local Taxes Source: Comptroller of Public Accounts
    4. 4. One-Fifth of Texas Households Pays Less Than Their Fair Share Source: Comptroller of Public Accounts
    5. 5. Why do we pay taxes? <ul><li>Roads/bridges/ports (commerce) </li></ul><ul><li>Education (research, workforce development) </li></ul><ul><li>Health Care (productivity) </li></ul><ul><li>Public Facilities (quality of life) </li></ul><ul><li>Technology (efficiency & commerce) </li></ul><ul><li>Public Safety (first responders & oversight) </li></ul>
    6. 6. What are we Funding with Taxes? (TX State Budget 08-09) Texas State Budget ’08-’09 | Source: Comptroller of Public Accounts
    7. 7. Texans Pay High Sales & Property Taxes Because we have No Income Tax…
    8. 8. What’s Wrong with JUST Sales & Property Taxes? <ul><li>Sales Tax </li></ul><ul><li>Very regressive </li></ul><ul><li>High impact on poor and young </li></ul><ul><li>Doesn’t capture services </li></ul><ul><li>Property Tax </li></ul><ul><li>Regressive </li></ul><ul><li>Impacts renters </li></ul><ul><li>Dependent on reported values </li></ul>Regressive lower income families pay larger % of their income Progressive higher income families pay larger % of their income Tax Balance
    9. 9. A State Income Tax Would Build a More Balanced Tax System for all Texans
    10. 10. How Would An Income Tax Work?
    11. 11. More Ways to Better Balance Texas Taxes <ul><li>Circuit Breakers – a targeted tax credit to protect low to moderate-income Texans from a property tax “overload” </li></ul><ul><li>Sales price disclosure – all commercial & private property sales prices must be reported to the state </li></ul><ul><li>Sunset review – all tax breaks and credits should be reviewed periodically by the Legislature. </li></ul>Tax Balance
    12. 12. Use of This Presentation <ul><li>The Center for Public Policy Priorities encourages you to reproduce and distribute these slides, which were developed for use in making public presentations. </li></ul><ul><li>If you reproduce these slides, please give appropriate credit to CPPP. </li></ul><ul><li>The data presented here may become outdated. </li></ul><ul><li>For the most recent information or to sign up for </li></ul><ul><li>our free E-Mail Updates, visit www.cppp.org . </li></ul><ul><li>© CPPP </li></ul><ul><li>Center for Public Policy Priorities </li></ul><ul><li>900 Lydia Street </li></ul><ul><li>Austin, TX 78702 </li></ul><ul><li>Phone 512-320-0222 | Fax 512-320-0227 </li></ul>

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