While many factors contribute to Texas' economic strength, the state's constitutional prohibition against an income tax is an especially attractive element for both business and individuals. Democrats have longed to remove this obstacle to higher taxes, and earlier this year Representative Lon Burnham lamented that Texans are "just too stupid" to understand how beneficial a state income tax would be.
In the 2009 Legislative session, Representative Diana Maldonado and other pro-taxers thought they had found a way around the Texas Constitution by attaching a measure to House Bill 3983. Also called the "Circuit Breaker Tax," HB 3983 would have tied property taxes to personal income. Ostensibly the law would have then allowed individuals with lower incomes to receive a reduction in their property tax rate, prompting proponents to refer to HB3983 as an 'affordable housing' measure.
This so-called affordable housing measure has several troubling implications. For one, the State would be required to compensate local government entities for any reduction in revenue, placing an additional burden on the State budget. Even worse is Maldonado and friends' attempt to redistribute income. Under HB 3983, lower income individuals buying homes above their means would be rewarded with a reduced tax bill, and inevitably, higher-earning individuals who prudently purchased more modest homes would be punished with a heavier property tax bill. In other words, regardless of your home-purchase decisions, your 'property tax' assessment would be based on your income.
While Liberal-Progressive Democrats were successful in passing this 'stealth' income tax, Governor Rick Perry wisely vetoed the measure saying,
(HB 3983) would make the distribution of the property tax burden less equitable by shifting it to middle-class property owners. This would make the property tax function more like a progressive income tax, in that the tax burden would slowly be pushed upwards until only the owners of the most valuable property paid any actual tax.
Diana Maldonado's support of the stealth income tax is just another example of her tax-and-spend approach to government. Rather than protect one of the elements that has made Texas the strongest state economy, our Representative attempted to radically change our tax structure. It is time to send pro-tax, pro-big government liberals like Diana Maldonado home and replace them with common-sense Conservatives.
"I am but mad north-north-west: when the wind is southerly, I know a hawk from a handsaw." -Hamlet, Act II, Scene II
On a recent campaign mailer, Representative Diana Maldonado included this 2008 quote from the Austin American Statesman: "Maldonado has a reputation as a budget hawk." While I hardly think I need to go over the credibility problems inherent in a liberal town's liberal newspaper praising a liberal candidate, those familiar with Maldonado's work on the Round Rock School Board were baffled by the 'budget hawk' statement at the time. Since then, her actions in the 81st legislative session have proved that, like most Democrats, Representative Maldonado prefers to fly fast and free with taxpayer dollars.
During Diana Maldonado's tenure on the Round Rock ISD Board, 2003-08, voters were appalled by the proposal of a whopping $350 million bond package in 2005, one the voters soundly defeated. Even so, by 2008 RRISD debt had risen to nearly $630 million, and yet the district still failed to allocate the required 65% of funds to classroom instruction, and had to go back to taxpayers for an additional $294 million that year. Granted, the district's student population had grown by about 30%, but revenues had grown by 75% during the same period. Furthermore, under then school board president Maldonado, the superintendent's contracted salary inexplicably rose by $38,480 giving him an annual salary of $243,080.00- significantly higher compensation than any governor of any state in the country. Not sure where the 'budget hawk' was in that mess.
Maldonado's disregard for budgetary restraint continued in the Texas House, and her first legislative proposal, H.B. 282, called for state employees to have a tax-payer funded paid holiday on Election Days. Never mind that Texas enjoys anywhere from 5 to 14 days of early voting for any election. Employers with even the most rudimentary grasp of cost-benefit analysis understand that paid holidays add to the overall budget. In order for every state employee to have 2 more paid holidays each year, Texas would have to add an estimated $54 million to the budget. Happily, that rotten egg never made it out of committee.
On other votes regarding government spending and business, Maldonado continued to show a lack of fiscal restraint, and earned a 28% fiscal responsibility rating from Texans For Fiscal Responsibility/Empower Texans. The average score was 56.7%, leaving Maldonado far below the majority of her peers in the House.
On the 2010 campaign trail, Maldonado seems confused about the projected budget shortfall, and continuously refers to a multi-billion dollar deficit. What Representative Maldonado doesn't seem to understand is that we are not talking about a current deficit, but a reduction in the estimated amount of tax revenue the state will collect next year, based on current trends.In the 2011 session, Texas legislators will need to create a new budget in accordance with these projected revenues. It is disturbing that Diana Maldonado's response to the projected shortfall is to talk about 'new revenue streams' and ending 'exemptions.' Translation of government-speak for the voter: 'new revenue streams' = new taxes, and apparently the Democrat mantra this year is to call for a state income tax.
In contrast, Republican candidate Larry Gonzales is campaigning on a fiscally conservative platform and promises spending cuts. Last Saturday in front of some 40 volunteers assembled to canvass the district, he signed a Taxpayer Protection Pledge created by Empower Texans. In his comments, Gonzales reiterated his commitment to doing "what every American family has to do" in cutting spending.
With Americans already reeling under the weight of Obamanomics, the last thing the economy needs is more and/or higher taxes, which will only stifle growth. What we really need are elected officials willing to cut government spending and allow people to use more of their own earnings as they see fit. Unlike some Texas House members, I think the voters are smart enough to tell the difference between a failed 'hawk' and a candidate ready to apply a scalpel, if not a handsaw, to the budget.
