Tax Decisions

An editorial by the San Antonio Express-News discusses amendments to Senate Bill 1 and House Bill 32 that will lower the state's tax revenue. Senate Bill 1 will increase the homestead exemption to $25,000—previously $15,000—and House Bill 32 will cut the business franchise tax by 25%. The author (unknown) is addressing taxpayers and wants to make sure they give some thought into Senate Bill 1 before voting in November. 

The author claims that voters will most likely vote in favor of Senate Bill 1 in order for homeowners to save a couple of bucks. The author also claims "the state's roads and schools remain perpetually underfunded." For this reason, homeowners should not vote in favor of the bill because the state doesn't have enough money to fund public goods as it is. The author references credible data from a 2009 report by the Texas Transportation Commission stating that $315 billion is needed to fund transportation through 2030. The author also implies that we should probably increase taxes to keep up with population growth. 

I agree with the author when he states that the homeowners should "sensibly vote 'no'" and that "the Legislature should consider rescinding its franchise tax cut." The population of Texas increases every day, so lowering taxes will make it harder for the government to provide public goods and services. Considering the petty amount Texans will save a year—approximately $120—I would rather we uphold the state's tax revenue rather than watch it dwindle with our state’s government.