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February 17, 2005

Social Conservatives and the Income Tax

By Andrew Dobbs

Note: Nothing I express here should be interpreted in any way to represent the views of the Texas Democratic Party, its chairman, staff, officers, executive committee or contractors. These are my views, and my views only.

Thought I should put that up there because I'm about to grab onto the third rail of Texas politics- the income tax.

Let's start out by laying out the things everyone agrees on. Texas schools need more money. Property taxes are too high on too many Texas families and with caps in place, there is no where local districts can turn for money. State taxes today do not give us enough to even maintain services, let alone add in new ones for education, child protective services, health care and so on. Even with changes in the franchise tax or some tinkering with property taxes, we won't have enough, so some other source of revenue will be needed.

So those are the things people can agree on, and the controversy lies at what other revenue sources will be used. Right now the only thing that has been seriously offered up is expansion of casino gambling. House Speaker Pro Tem Sylvester Turner (DINO-Houston) has filed a bill that would allow VLTs (Video Lottery Terminals- a fancy word for slot machines) at horse tracks, greyhound tracks, Indian reservations and 9 "VLT Centers" (read: casinos) around the state. It was nice for one of Craddick's favorite Democrats to offer up this bill, as it gives Texas GOP Chairwoman Tina Benkiser the ability to bash the bill as a "corrupt Democrat scheme" even while the leaders of her party are pushing it through the lege. But gambling failed in the special session on school finance because a large part of the GOP is so intensely opposed to the idea- social conservatives see it as sinful. Now a large number of liberal Democrats are joining them as new studies on the state lottery find out that the poorest Texans are the most likely to play the numbers, making it what we told them in would be- a tax on the poor (and by we, I mean Democrats, not me as I was a child when the lottery was introduced).

Anyways, gambling is not acceptable to social conservatives, but something's gotta give. Could this be the perfect opportunity to get some conservatives to jump on the income tax bandwagon?

Liberal Democrats and socially conservative Republicans both oppose gambling, both want more money for education. Why shouldn't they both support an income tax? With it we could virtually eliminate the vast majority of local property taxes and taxpayers could take an extra half hour on their taxes to itemize and write off their state income taxes. In the end most taxpayers would actually see a pretty significant tax cut, even while we generate more money for the state. All this and no gambling? Almost sounds too good to be true, but it ain't.

So why shouldn't the social conservatives jump on this bandwagon? Democrats could even offer to make it a flat tax rate and to perhaps consider a pilot voucher program for a decade, just to see what its effects were. Thanks to the Bullock Amendment it only takes a simple majority to get an income tax on the ballot for Texas voters. Between a handful of liberal, anti-gambling Democrats and conservative anti-gambling Republicans could we cobble enough votes together? With the promise of lower taxes and better services could we get enough voters to support the plan? Who knows...

I doubt it would work in a million years as these GOPers would fear primary voters back at home. But with a little bit of courage and a whole lot of creativity we could solve a lot of our problems all at once.

Just my two cents...

Posted by Andrew Dobbs at February 17, 2005 04:45 PM | TrackBack

Comments

A few decent reasons I can think of:

FIRST OF ALL, it's an *income tax*. Because Karl Marx once said something nice about it, it is therefore equivalent to Soviet communism according to the traditionalists. Just like public education. Therefore they must both rot in hell.

"Where did this idea come from that everybody deserves free education, free medical care, free whatever? It comes from Moscow, from Russia. It comes straight out of the pit of hell. And it's cleverly disguised as having a tender heart, [but] it's ripping the heart out of this country."

- Rep. Debbie Riddle (R-Tomball)

http://aprendizdetodo.com/causes/?item=20030626

SECONDLY, remember that the GOP is a coalition, and there are more than a few libertarians (even erstwhile members of the religious right) who think that an income tax is worse than gambling, because it's THEFT! and COMMUNISM! whereas gambling is just plain ordinary sin. Or not. But you get the idea.

THIRD, follow the money. Who does an income tax hurt, and who does gambling hurt? It's like Lenin said man, you know... "I am the Walrus?!?" SHUT THE F*CK UP DONNY!

So anyway, Andrew, there's three reasons. The traditionalists are more worried about Reds than gambling, the libertarians are too, and the business folks, are, umm, three.

Posted by: Jim D at February 17, 2005 05:14 PM

Andrew... I like the post, and I completely agree with you on the issue... the only real way to solve our fiscal crisis in the long-run is with an income tax. It's not what most people want to hear, including most politicians of our party, but it's the truth. In fact most proposals (the ones I've seen from Rep. Rodriguez and Sen. Shapleigh last session) would in fact amount to a tax decrease for all Texans earning less than $80,000 / year because enacting an income tax would dramatically reduce property taxes.

Perhaps the most interesting bill I've seen this cycle on this issue is that of Lon Burnam. The bill would solve the school finance with a 3% income tax on Texans that make over a million dollars a year. Thus it wouldn't effect 99% of Texans, but it would solve the school finance crisis for now. Sounds great to me, but no tax bill of Lon Burnam's will pass anytime soon..

Jim, yes, you're right on the practicality of all of this, but I think that it is still important for those of us that support a state income tax to educate the public on the practicalities of such a plan. Realistic or not, it's important to establish a dialouge on the topic.

For that reason, I'm going to push this entry up a bit since it got buried a little bit...

Posted by: Byron L at February 17, 2005 05:26 PM

I always thought yawl were crazy down in Texas for not having state income tax. The thought of one of the largest and most populated states in the union having most of its state funding come from the Lottery seemed a bit loony. But hey up in Pennsylvania we do river boat gambling and slots to make up for tax short falls. If taxes won't fly in Texas then politicians down there need to find some money making scheme that will. Cuz you folks are in trouble.

Posted by: Jordan Kramer at February 17, 2005 07:26 PM

Byron -- absolutely.

That said, I'll bet (no pun intended) on gambling winning out over an income tax.

Posted by: Jim D at February 17, 2005 08:49 PM

Bring on the craps tables! Unfortunately, when I got to Shreveport, it's all the local folks standing next to me pissing all their money away. Income tax it is.

Posted by: Daily Texican at February 17, 2005 10:55 PM

Two words: constitutional amendment

Posted by: snrub at February 18, 2005 12:39 PM

Andrew, you and I have disagreed a LOT more lately than we have agreed, but I have to hand it to you -- the last couple of days -- both this and the Lynne Stewart piece -- I was right with you 100%. Of course, you may be interested to know that an income tax resolution I was supporting (but did NOT author) narrowly failed at last year's Denton County convention; I've lived all over the country, and from what I have seen states with income taxes are generally A LOT better off than ones without.

Posted by: Spud at February 18, 2005 03:33 PM
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