Tuesday, February 22, 2011

Toward a Texas budget surplus, & more progress in education

If every Texan paid the same percentage of their income in state and local taxes as are paid by the average cafeteria worker or teacher's aid, then Texas would have a budget surplus to deal with instead of a deficit!

Study regressive taxation and the state and local tax rates by income level in Texas at http://www.itepnet.org/wp2009/tx_whopays_factsheet.pdf . There you will find that the 20% of Texans with the lowest incomes pay 12.2% of their income in state and local taxes. For the next 20% the average percentage paid is 10.3%. The most wealthy 1% of Texans only pay 3% of their income in state and local taxes.

If all Texans paid 10.3% of income in state and local taxes, Texas would have a budget surplus!  If that percentage, and more, is not too high for the poorest 40% of families in Texas, why is it too high for the wealthy?  If this correction was done with a state income tax, we could also deduct it from from our federal taxes as a federal deduction offset. The federal government would pay part of the cost.

Without such a change, the 4,800,000 children in the public schools of Texas will suffer. They will suffer due to a multitude of state services for children being cut, including school cuts leading to a lower quality of education in more crowded classrooms. This will affect their entire lives, and the future of Texas. What are we allowing to happen in Austin in our name?

See www.TexasFlatTax.com.