LBB says HB 3 raises taxes on most Texans

From The Quorum Report

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$100,600+ Incomes only group to see net tax decrease, poorest see biggest increase

(to understand why, see the regressive taxes included in the bill)

A new analysis [PDF] of the Committee Substitute to House Bill 3 by the Legislative Budget Board shows that low income Texans will see a bigger percentage increase in their taxes than those on higher incomes.

The LBB says that for fiscal year 2007 families earning between $13,415 and $22,833, the percentage increase in taxes will be 5.16 percent. For families earning between $31,735 and $41,463, the percentage increase in taxes will be 4.95 percent.

For families earning between $64,325 and $79,271, the percentage increase in taxes will be 2.66 percent. For families earning between $79,271 and $100,593, the percentage increase in taxes will be 1.65 percent.

Families earning between $100,593 and $140,853 would see a net tax decrease of 0.43 percent. Families earning over $140,853 would see a net tax decrease of 2.88 percent.

The figures are included in a Tax/Fee Equity Note released today by the LBB. The reports final tax incidence shows that for the lowest income level (0 to low $10,000 income range), there is a $111.9 million increase, or 5.6 percent, in fiscal year in 2007.

For the middle income level (low $40,000s to low $50,000 income range), there is a $175.4 million increase, or 4.3 percent, in fiscal year in 2007. For the highest income level (low $140,000 and above), there is a $400.5 million decrease, or 2.9 percent, in fiscal year in 2007.

In other words, the property tax reduction envisioned in HB2 will cost most Texans more taxes than it saves them.

(c) Copyright March 8, 2005 by Harvey Kronberg, www.quorumreport.com, All rights are reserved