Texas’ property tax burden is ranked the 14th highest in the nation, and it weighs heavily on homeowners and businesses. My husband and I scrimped and saved for years, living well below our means so that we could pay off our mortgage and become entirely debt-free. Unfortunately, even though we paid off our mortgage, our house is still not ours – and our monthly payment in taxes is about the cost of renting a modest apartment! We are, in actuality, paying rent to the government in a home we bought and paid for at great personal sacrifice. My husband has remarked grimly that he feels like a serf in his own home. The American dream of home ownership is ruined by the reality that under Texas’ heavy property tax system, no one who owns a home or commercial property can ever truly claim ownership. We all rent from the government – indefinitely – with no pay off in sight!
The evidence is clear, Texas’ property tax system should be abolished and replaced with one that promotes economic activity, job creation, and protects the rights of property owners. That’s why I support a consumption-based tax. I will work with expert proponents of the FairTax to adapt the FairTax to a state system. Texas CAN lead the way on tax reform!
Here are some assumptions from the conservative think-tank, Texas Public Policy Foundation:
• Repealing property taxes and replacing revenues with a reformed sales tax would provide meaningful tax relief, generate added wealth, spur job creation, all while protecting the rights of property owners.
• In the first year after tax reform is implemented, personal income in Texas would increase $3.1 billion to $3.3 billion. IN five years, personal income would increase by $21.3 billion to $42.1 billion – 2% to 4.3% higher than under the current tax structure.
• In five years, this tax reform proposal would create between 127,700 to 312,700 net new jobs, as compared to what would happen without tax reform.
It makes sounds economic sense to abolish property taxes and replace with a voluntary tax like the consumption/sales tax - our economy will BOOM!