AUSTIN – The Texas Public Policy Foundation today released the paper Budget Cutting Through the Sales Tax Reduction (STaR) Fund by the Center for Fiscal Policy’s director The Honorable Talmadge Heflin and economist Dr. Vance Ginn. The paper explains the need for the Sales Tax Reduction (STaR) Fund and describes how it would work as a mechanism to allocate state surplus dollars in order to reduce the bottom line of the budget while keeping more money in taxpayers’ pocket.
“Some legislators are frustrated with the budget process because the money saved by cutting spending in one area is often reallocated elsewhere, resulting in no reduction in the overall budget,” said Mr. Heflin. “To resolve this problem while relieving taxpayers from the burden of paying higher taxes, we recommend creating the Sales Tax Reduction (STaR) Fund.”
“Texas’ government budget is up an excessive 11.8 percent above increases in compounded population growth plus inflation since the 2004-05 budget,” said Dr. Ginn. “The STaR Fund would be a special fund where state surplus dollars could be transferred and used to temporarily reduce the state sales tax rate. Ultimately, the STaR Fund will help tackle the disease of excessive government spending so that the symptoms of overly burdensome taxation and less economic growth can be cured.”
To read the full report, visit: http://txpo.li/2jH8BW6
To schedule an interview with Mr. Heflin or Dr. Ginn, please contact Caroline Espinosa at [email protected] or 512-472-2700.
The Honorable Talmadge Heflin is Director of the Center for Fiscal Policy at the Texas Public Policy Foundation, a non-profit, free-market research institute based in Austin. In the 78th Session, Heflin served as chairman of the House Committee on Appropriations and navigated a $10 billion state budget shortfall through targeted spending cuts that allowed Texans to avoid a tax increase.
Vance Ginn, Ph.D., is an Economist in the Center for Fiscal Policy at the Texas Public Policy Foundation.
The Texas Public Policy Foundation is a non-profit free-market research institute based in Austin.
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