The Reason

Texas government spending has increased substantially faster than the growth in inflation and population since 2004, at a cost to Texans of $15 billion this two-year budget cycle. That's an additional $1,000 burden on the average Texas family of four, just to fund state government.

The Conservative Texas Budget Coalition was formed for precisely that reason: we can't afford the consequences of more spending. 

State government collects more money than it needs to provide public provisions. That means less money for you and your family to save, pay bills, buy groceries, and fill-up the family van. If excess revenue this year funds an expansion of government, then higher taxes and spending cuts will be necessary during the next economic slowdown — which spells out an uncertain and turbulent financial future for you. 

Business margins taxes put at risk an entrepreneur’s dream to own a business. Higher property taxes push people out of their homes. Higher taxes in any sphere reduce individual liberty and economic prosperity.

The simple truth is that there are more costs to taxes than the dollar amount itself: when money is in the hands of bureaucrats, it isn't in your hands to buy a home, start a business, and follow your dreams.The average Texan has no way to track government spending — official budget numbers often misstate actual spending. To remedy this, the Legislature should post a program-based Texas budget online in real-time.

The Plan

Texas should spend and tax less to ensure continued prosperity.

Pass 2020-21 Conservative Texas Budget

$234.1 billion in All Funds $156.5 in State Funds Based on an increase in population growth and inflation for 2017-18

Approve Conservative Spending Limits

Require state & local government spending growth to be no more than population growth and inflation for last two fiscal years

Provide Local Property Tax Relief

Set automatic local rollback trigger rate at 2.5% and use state dollars to eliminate school maintenance and operations property taxes

Abolish Business Margins Tax

Increase investment and jobs by eliminating this onerous business tax

Adopt Tax Relief Fund

Reduce state’s budget while returning dollars through tax relief

Secure Budget Transparency & Accountability

Adopt program-based budgeting along with zero-based budgeting and promote efficiency audits to eliminate government waste

The Budget

Pass 2020-2021 Conservative Texas Budget.

The 2018-19 Conservative Texas Budget limits growth of all Texas state government spending to the rate of population growth plus inflation for the last two fiscal years. 

Approve Conservative Spending Limits

Without Spending limits, We will not see real progress

It is time to require state & local government spending growth to be no more than population growth and inflation for last two fiscal years.

Property Tax Relief

Set automatic local rollback trigger rate at 2.5% and use state dollars to eliminate school maintenance and operations property taxes.

The Facts

  • Texas' property tax system is among the most punitive in the nation.

  • According to the Tax Foundation, Texas' property tax system ranks as the 14th most burdensome nationally.

  • According to the U.S. Census Bureau, the annual property tax paid by an owner-occupied dwelling in Texas was $2,477 in 2012. By comparison, homeowners in surrounding area (i.e. the South Region) and the nation paid a 3-year average annual tax of $1,411 and $2,091, respectively.

  • Rising property tax bills discourage investment and create a drag on the state's economic performance.

Recommendation: Require voter approval for property tax increases that exceed the lesser of 4 percent or population growth plus inflation.

Abolish Business Margins Tax

Increase investment and jobs by eliminating this onerous business tax

The Facts

  • Texas' margin tax is complex, costly, and difficult to comply with, giving rise to a less competitive state business climate.

  • The margin tax has consistently underperformed. Collections have fallen below expectation in most years since its inception, partially resulting from legal tax avoidance strategies, a common issue with complex tax schemes.

  • Texas does not have a revenue problem. From the 2004-05 to the 2016-17 budget cycle, the state's estimated total tax collections is 75 percent, much faster than the 55 percent growth rate of population plus inflation.

Recommendation:

  • Eliminate the margin tax. Read more here and here.

  • Increase investment and boost jobs by eliminating Texas' business tax. Read more.

Tax Relief Fund

Reduce state’s budget while returning dollars through tax relief

Texas spends too much in part because the appropriations process is rigged to support more spending. The STaR Fund is designed to give policymakers a mechanism to reduce the spending growth by providing Texans with a sales tax cut through the appropriations process. Click on the button below to see an example of a tax relief fund.

Transparency & Accountability

More government spending means less opportunity for you.

It is time to adopt program-based budgeting along with zero-based budgeting and promote efficiency audits to eliminate government waste.

Contact Us

512-472-2700

info@texaspolicy.com

The Latest

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