Thursday, December 05, 2002

HoustonChronicle.com - Report says state can cut sales tax and hike revenue

Texas could grant a slight cut in the sales tax and still raise more than $3 billion by taxing business and professional services, according to a new report by the Center for Public Policy Priorities.

The center argues that even a modest sales tax cut would represent a move toward making the state's taxation a little fairer across incomes.

Currently, they point out, Texas families earning less than $18,000 pay more than 17 percent of their income in state and local taxes.

Those earning $83,000 and more pay 5 percent of that in the same taxes.

Sales taxes are by their nature regressive, that is why they are pushed by higher-income conservatives. Then they want the carve-outs like services so they pay even less.

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