AUSTIN, Texas — The House Ways & Means Committee on Wednesday adopted a tax plan offered by State Rep. John Smithee that reduces property taxes without creating new classes of taxes. The vice president of the Texas Public Policy Foundation issued the following statement:
“The committee has chosen a plan that reflects good economic policy,” said Michael Quinn Sullivan. “While there is always room for improvement, the committee has adopted a plan that is good for the state. The plan doesn’t enact any new classes of taxes, such as those based on compensation or economic activity as has been proposed in the past. This makes Texas’ tax system more transparent while ensuring we continue to be an attractive place to do business. A key piece of the bill calls for future reductions in property taxes by using future surpluses. This is a great win for taxpayers and the future economic prosperity of our state. Chairman Keffer and his committee have done the right thing.”
The Foundation has long advocated for a greater reliance on visible, consumption-based taxes, and urged the legislature to avoid new taxes on economic growth. Sullivan said that while the Foundation would prefer to see the franchise tax completely eliminated through a slight reduction in general revenue spending, he noted that the plan adopted by the committee is economically responsible.