House Republicans have announced details of their plan to provide $4.7-billion in tax relief this session. Texas Public Radio’s Ryan Poppe reports budget writers say their plan, unlike the Senate’s, will benefit every Texas family without threatening the state spending cap.
The nearly $5-billion tax cut plan authored by House Ways and Means Committee Chairman Dennis Bonnen would cut the state’s sale tax from 6.25% to 5.95%, which the Texas Comptroller’s Office says would provide the average Texas family an additional $172 dollars a year.
“Today Texas has the 12th highest sales tax rate in America. When House Bill 31 passes that rate will drop to the 26th highest in America," said Bonnen.
The plan is different from a proposal by Governor Greg Abbott that calls for reducing property tax rates this session. The senate has already approved and sent the House a $4.4 billion dollar tax relief plan that includes property tax reductions.
But some in the House believe the Legislature should be considering other needs before cutting taxes. San Antonio Democratic Rep. Trey Martinez Fischer also sits on the House’s Ways and Means committee and says he’s open to cutting the state’s sales tax because it would benefit everyone, but not at the expense of future infrastructure needs.
"You know this is again a decision that will take $5-billion dollars out of our budget two years from now," Martinez Fischer said. "And when you look at our existing priorities, the question becomes is $5-billion dollars better spent making critical investments or better spent on tax cuts.”
Bonnen pledges to have bipartisan support for the bill before it hits the House floor for a vote.
