REAL Republicans are for Strayhorn

Thursday, June 01, 2006

Perry's TV Advertisement Is False

Perry's TV ad bragging about his so-called "tax cut" is generating the wrong kind of buzz on the internet and the mainstream press (specifically, it's creating buzz that Perry's ad is chock full of lies).

FIRST LIE: Perry's fictitious ad claims that the average Texas homeowner will receive a two thousand dollar property "tax cut" over the next three years.

TRUTH: Perry falsely inflates his so-called "tax cut" number by incorrectly starting with the average home sales price, but taxes are based on the much lower average home appraisal value, so Perry should base his "tax cut" spin on the appraised value. This error alone inflates Perry's number by about 50% over the correct starting point where he should begin his calculation from because the average appraised value of Texas homes is around $118,000 as compared to the 50% higher average sales price of $180,500 which Perry used. Perry then further inflates his so-called "tax cut" by pretending that there is a cap on home appraisals, which is an idea many proposed but Perry and his tax-hiking administration refused to consider. Appraisals rose 7% last year, and there is no reason to doubt they will rise 7% this year and next, and this rise will eat into the so-called "tax cut." Moreover, even without voter approval, school boards are granted the authority to increase the property tax rate by $.04 per $100 of appraised value (they can raise it even higher with voter approval). Every bit of our past experience tells us the school boards will in fact raise the tax rate by at least $.04 per $100. This eventuality would have been avoided if Perry had passed a cap on appraisal increases and eliminated the school board's authority to raise the property tax rate, but Perry refused to consider such measures. When you figure in this inevitable $.04 per $100 increase plus rising home appraisals, the amount of property taxes which are being replaced by the new small business income tax is less than a third (maybe less than a quarter) of Perry's "pie in the sky" number.

SECOND LIE: Perry's fictitious ad claims that he closed corporate tax loopholes.

TRUTH: To the contrary, Perry's switch from property taxes to small business income taxes creates more loopholes for Perry's biggest corporate sponsors at the expense of Texas' small business job creators. Even the Legislative Budget Board's analysis confirms that big property-rich business will get a huge tax windfall from Perry's "loophole closing" scheme. The mining industry gets almost $300 million in new tax loopholes, utilities and phone companies get over $100 million in new tax loopholes, big sales corporations get almost $150 million in new tax loopholes, and the insurance, finance, and real estate industries get over $800 in new tax loopholes. These new tax breaks for big businesses (totaling almost one and a half billion dollars) are mainly paid for by Perry's new small business income tax (except that hospitals got a big new tax loophole in that deal so these new tax loopholes are being born by small non-medical businesses).

THIRD LIE: Perry's fictitious ad claims that he's protecting Texas' job climate which Perry claims is the best in the nation.

TRUTH: The truth according to the U.S. Department of Labor's Bureau of Labor Statistics is that the Texas job climate is tied for 38th from best and only 9 states have a worse job climate.


Anonymous Anonymous said...

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4:28 AM  

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