King discusses House tax cut plan

King Family

Friends, I wanted to show you the tax cut plan that Texas House Republicans proposed last week. The plan’s focus is on job creation and overall economic expansion. Please read below, but if you would like more details see HB 31 & HB 32.

➢ The House tax cut plan provides the broadest benefits to taxpayers, delivering tax relief to big businesses and small business, homeowners and renters, and every single Texan across the state.

➢ At $4.87 billion, it is the largest tax cut on the table, and provides permanent tax relief: it cannot be eroded by local tax hikes or rising appraisals.

➢ It gives a tax cut to all businesses that currently pay the franchise tax rather than shifting 100 percent of the franchise tax burden to five percent of businesses.

➢ It protects the integrity of the spending cap, while reducing the state tax burden and state spending; it shrinks government rather than shifting a growing spending burden to the state to buy down property tax rates.

➢ It reduces the state sales tax for the first time since it was enacted more than 50 years ago, and provides tax relief to 900,000 businesses not paying the franchise tax.

➢ The combination of franchise tax cuts and sales tax relief will have the most dynamic impact on the Texas economy.

SALES TAX
• HB 31 cuts the state sales tax rate from 6.25% to 5.95%. This is real, tangible tax relief that will benefit families and businesses of all sizes every time they buy something.

• Today, Texas has the 12th highest state sales tax rate in America. HB 31 will drop Texas on that list to #26.

FRANCHISE TAX
• HB 32 cuts the franchise tax rate by 25% across-the-board for all businesses, large and small, that currently pay the franchise tax. Retailers and wholesalers will pay 0.375%, and all other businesses will pay 0.75%.

• This approach maintains the original intent of the franchise tax, which was to create a tax structure that was broad, fair and low… so that everybody helps to carry a little bit of the load.

• And HB 32 expands eligibility for the EZ computation by doubling the cap to $20 million in total revenue, and lowers the EZ rate from 0.575% to 0.331%. This will substantially lower the cost of compliance for thousands of small businesses.

State Representative Phil King represents Parker and Wise counties in the Texas House of Representatives.
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Pol. ad. paid for by Phil King.
Copyright © 2015 Phil King Campaign, All rights reserved.
  
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3 responses

  1. Senator_Blutarsky | Reply

    EmpowerTexans just called me……………….seems Kings’ buddy, Joe Strauss, has some good legislation from the Texas Senate, bottled up and wont allow it to be voted upon by the House.

    Phil King – voted FOR toll roads, has Ehtics committee violations in campaign contributions, was Bob Perry’s attack dog on some issues, worked to steal water rights, is one of the bigger fracking lackeys, and just a general sold-out cheap politician

    And is a Joe Strauss supporter

  2. Frank Williford | Reply

    Tax relief is always welcome but the mantra of “good for all” is not totally honest.
    When taxes are cut the revenue stream will sooner or later be raised in some other area to compensate. Governments are unable to actually budget a cut in spending and maintain it for any appreciable period of time. If the State cuts the sales tax then the proportion of the collected tax flowing back to the Counties and Cities will be reduced correspondingly. The Counties and Cities will have to make up the funding shortfall in some other way. That is what makes King’s following statement patently false by being misleading and he knows it:

    “……it shrinks the government rather than shifting a growing spending burden to the state to pay down property tax rates.”

    True as stated but false as to the unstated consequences.

    The state may be protected but the property tax payers surely are not protected.
    I own my own home. I worked hard and paid for it. BUT I still pay “rent” to the Government for being allowed to keep it and live in it. My Government landlord doesn’t help at all with maintence or utilities. If I quit paying the “rent” the Government will take my home away from me. My appraisal rate is not fixed and never will be, so even for those individuals 65 years old and older their net property tax will continue to rise. Rise even faster if a portion of State revenue passed to the Counties and Cities is diminished.

    The State Senate proposed legislation that would have actually helped homeowners with their tax burden but the House successfully side tracked it. More distribution of wealth from those who contribute the most to those who contribute the least in the case of homeowners and non-homeowners. Relief to homeowners is long overdue but totally neglected by the House since the majority of voters are not homeowners. Political expediency rules again.

    Shame on all of them.

  3. Frank Williford | Reply

    Latest poll results from Parker County Conservatives. Poll was taken yesterday evening at a conservative meeting attended by several hundred people.

    Reduce state sales tax 15%

    Reduce homeowner tax burden 85%

    Wake up and smell the coffee guys. People are angry and you don’t even understand enough to comprehend what is driving the elrectorate. The only way we are going to get illegals to pay their fair share of anything is through the sales tax, yet you want to reduce it for them and any others who pay little or nothing.

    These conservative people are going to get out the vote for the right reasons next election. The largest group of low information voters will still be Democrats and you won’t get their vote in any case, but the conservatives are going to bury those politicians who remain oblivious to the relief their constituents have been begging for some years now.

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