Taxes in Texas

Published  Friday, April 30, 2010

Yesterday I read the intriguing comments of someone claiming to be a Texan who said,

"...Texas does not have a state income tax. Our municipalities depend largely on property taxes. It's insane to hear well-to-do folks whine about their property taxes when there are virtually no other local taxes (besides sales tax). Probably the only way for people to appreciate the services provided based on our tax dollars is to start taking them away. Start with the rich neighborhoods..."1

I know many people who have this same mindset and felt that I should address the idea before I was forced to hear it one more time from the uninformed masses who consider themselves so well educated. So let's quickly clear up the facts in this ridiculous claim from the "Texan". Here is a list of just a few taxes that real people pay in Texas on a daily or yearly basis, depending on the tax or fee (which is just another name for a tax).

Cigar, Tobacco Products
Crude Oil
Diesel Fuel
Hotel Stays
Insurance Premium taxes
Liquefied Gases, such as butane, protane and compressed natural gas.
Loan Administration fees
LOCAL Property taxes
LOCAL Sales and Use taxes
Manufactured Housing taxes (I don't think many "well-to-do" people will have to deal with this one)
Mixed Beverage taxes
STATE Property taxes
STATE Sales and Use taxes

Not to mention all the business taxes that are in place for businesses who then just pass them along to consumers. Additionally, the services that the above quoted person mentioned (trash collection, street lights, road repairs and so on) are paid for by other fees and taxes, not through property taxes.

I don't know about you, but I'm ready to be free to keep a little more of my hard earned cash. What would you do with an extra 15-30% percent of your income back in your hands each year?