On Wednesday, Texas’ governor, lieutenant governor and speaker of the House announced a plan to increase the state sales tax, which seems unusual for the state’s top Republican lawmakers. But KUT Austin’s Senior Editor Ben Philpott says it’s a way for them to get around the thorny issue of property tax increases.
“Property taxes are the most vilified thing that our state government does, so, it’s okay if we’re gonna increase this sales tax by just a tiny bit to help pay down those property taxes,” Philpott says of how he suspects the lawmakers view the issue.
Philpott says they support a 1 percentage point increase in the state sales tax – in other words, people will be taxed an extra penny for every dollar they spend.
What you’ll hear in this segment:
– How the sales tax increase could be a way to help the state afford cuts in property taxes
– How the sales tax revenue could help pay for public education
– Why the sales tax increase could have a disproportionately negative effect on people with lower incomes
Written by Caroline Covington.