I know that you will all be shocked... just shocked!.. that House Republicans in the Texas Lege(although not all!) have ok'd a tax bill that will benefit big business.
The article is in the Houston Chronicle. A few choice snippets after the break.
The Texas House on Monday night gave tentative approval to a $10.8 billion tax overhaul that would cut local school property taxes by about one-third in exchange for a revamped state business tax, higher sales and cigarette taxes and a new tax on snack foods.
The 78-70 vote was largely along party lines, but eight Republicans joined 62 Democrats in voting against the measure, which had the strong support of Republican Speaker Tom Craddick. Craddick, who normally doesn't vote on issues before the House, voted for the measure.
Ways and Means Chairman Jim Keffer, R-Eastland, called House Bill 3 a "bold move for the people of Texas" and said it would create a fairer, more broad-based business tax that would encourage job creation.
But Democrats attacked the measure because it wouldn't raise additional funds for public education and, according to a recent report by the state comptroller, would give a net tax cut only to higher-income Texans.
The business levy would raise about $3.2 billion of the $10.8 billion required over the 2006-07 biennium to fund the one-third cut in local school property taxes. The rest of the revenue would come from higher consumer taxes, including a 1-cent increase in the sales tax and a new 3 percent tax on snack foods.
State Rep. Corbin Van Arsdale, R-Tomball, gained approval of an amendment that would send any appeal of the constitutionality of the new tax law directly to the all-Republican Texas Supreme Court.
Turner said the insurance, petrochemical and utilities industries would get a big break under the tax bill, which shifts the business tax burden from capital-intensive industries to service companies.
Most families that receive the property tax break still would pay more overall because of the higher sales taxes.
"It is tax redirection where the poor are paying more. The insurance companies, the petrochemical companies and the utilities are paying less," Turner said.
Rep. Scott Hochberg, D-Houston, succeeded in amending the bill to exempt diapers and parking at medical facilities from all sales taxes. He replaced the lost $37 million a year by adding sales tax to elective cosmetic surgery procedures.