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Two different tax cut proposals from Abbott & Paxton
The new year is expected to bring a pitch for two different tax cut proposals. One from the governor and the other from the lt. governor, and both come with big promises for homeowners.
AUSTIN, Texas - The new year is expected to bring a pitch for two different tax cut proposals.
One from Governor Greg Abbott and the other from Lt. Governor Dan Patrick, and both come with big promises for homeowners.
Abbott and Patrick's proposals for tax cuts
What they're saying:
Consumer spending is a critical part of a major tax elimination idea by Governor Greg Abbott. He’s been crisscrossing the state pitching a plan which offers one huge cut.
"Put an end to any homestead taxation by your school district. Bring that number to zero," said Gov. Abbott, at a recent stop in Tarrant County.
A budget surplus is also needed to drop the age for a property tax freeze to 55. That idea is being pitched by Lt. Governor Dan Patrick.
"A thought came to me, and we call it Operation Double Nickel," Patrick said at a news conference last week.
Dig deeper:
Texas is a great villain to talk about on the Campaign trail. Both Abbott and Patrick are running for reelection.
"It's an easy villain, I think, for elected officials and folks running for office to point to and say, Hey, we're going to we're going to help you all out by lowering your property taxes again," said Shannon Halbrook, an economic analyst with the policy group "Every Texan."
The hard part in fulfilling either tax cut promise, according to Halbrook, is keeping the budget surplus going.
"What I'm worried about is what happens the next time there's an economic downturn, and we don't even have the revenue going forward that we think we have now," said Halbrook.
The cash being collected and calculated at check-out counters now, certainly may provide some insight. Christopher Lauth told FOX 7 he is throttling back because of what may await after the new year.
"I'm a little concerned about the economy, just because of the uncertainty, and things are going up unfortunately, so I'm just not going to do it this year," said Lauth.
Abbott and Patrick are banking on talking about tax cuts on the campaign trail. But for state lawmakers, lowering the tax freeze at 55, may be a better bet, according to Halbrook.
"It's a simple proposal for folks to understand. And you know, as the Lt. Governor pointed out, it does help more folks, obviously. What I kinda wonder about that proposal though is, if you're 55 years old, you're probably still working, and you're probably making more than you've ever made in your life. So what I really worry about is, you know, who we're providing the tax cuts to," said Halbrook.
With the regular session still more than a year away, there's a lot of time to see which plan could have the deeper run under the Capitol dome.
The tax elimination idea by Gov. Abbott is part of a five-point plan that includes clamping down on local tax hikes and moving property appraisals from every year to once every five years.
Patrick is worried ending the school property tax would result in increasing the sales tax. He claims his plan is more do-able.
The Source: Information from statements by Gov. Greg Abbott and Lt. Gov. Dan Patrick interviews conducted by FOX 7 Austin's Rudy Koski