On Tuesday, the Repulican led Texas house passed House Bill 3 which proposes relief from high real estate taxes in Texas by increasing the sales tax, extending it for the first time to items such as bottled water,auto repair services,snack foods, cosmetic surgery,and tobacco among other things.It is also intended to close loopholes companies have been using to avoid business taxes. This restructuring is a response to complaints about ever increasing property taxes by school districts and property valuation increases as a back door means of raising property taxes.
The Bill passed 73-68
The Young Republicans of Texas released a statement
The Republican-led Texas House of Representatives has taken a big step toward doing what Democrats could not do in over 120 consecutive years in power - enacting a virtual state income tax. For many years, Texas Republicans advocated fiscal restraint, and their opposition to a state income tax was axiomatic. Those days are long over, and Speaker Tom Craddick (R-Midland) is to blame.
the complete statement can be found at
http://yct.org/art-HB3.htm
From the Texas Public Policy Website
Unfortunately, House members who put their reputation on the line to vote for this enormous tax bill will soon realize what became obvious almost immediately: no one will remember the property tax cut, only the vote to tax small business through a hidden income tax and increase the sales tax to the highest rate in the nation.
For two decades, Republicans made historic gains nationally and in Texas based on a simple marketing campaign: they were the party opposed to tax shifts and rate increases. They were the fairy godmother to taxpayers.
http://www.texaspolicy.com/commentaries_single.php?report_id=761
Also, the burntorangereport.com has a good diary by LaMasters covering this issue.
It seems to me that Texas House Republicans have set themselves up for defeat within their own party. Democrats must take advantage of this opportunity in the 06 elections, driving home the point that even at the state level, the GOP is no longer the party of fiscal conservativism that many republican voters believe they are endorsing. This very unpopular action should increase negative feelings toward the Republican party in Texas and hopefully help pave the way for Democratic wins in the 06 cycle. For this to happen however, Democrats must be ready with strong candidates with strong financial support to take advantage of this well timed weakness in the Republican party.