Taxpayers are waking up to the tax bite of the new Texas margin tax

Being April 15th, you would think all the focus would be on federal income taxes. Not so, says one CPA:  "I’m getting more calls from my clients about the margin tax than the income tax.”

That’s because the Comptroller just sent out letters and forms reminding taxpayers of the new tax and telling them how to file and pay. Check out this Austin American-Statesman story.

Comments

[Robert Stevenson, CPA]

Dear TSCPA,
Before the 79th Texas Legislature convened, John Sharp and the Texas Tax Reform Commission came to Houston for their public hearing on how to pay for public education. I left my office and went to TSU and signed up to speak to the commission, because I had strong feelings about public school financing. I have served on the Budget Committee and the Bond Committee of the Spring Branch Independent School District for several years and I understand the unfairness of a one size fits all "Robin Hood" plan. The first to speak was "The Metropolitan Organization", a far left organization. They were allowed to speak for an hour by the commission and they spoke in favor of a business tax exclusively. I was the second to speak and I spoke in favor of a balance between a business tax and an increase in the sales (consumption) tax, so that all Texans could help to pay for public education. I was given five minutes and was not allowed to finish my comments as they were not interested in hearing my comments at all. I came away from the public hearing with the impression that this commission had no interest in hearing alternative points of view. It was unfortunate that the Sharp Commission was unwilling to listen to alternative solutions to a major problem in this state. In Spring Branch, we have a student population that is 55% economically disadvantaged, and the remaining 45% pay for 100%, along with the Robin Hood payment. The Legislature promised to 'Hold Harmless' in HB1 when they so courageously gave Texas parents a tax cut, but they didn't hold SBISD parents harmless, we are $10M short and we are on the path to insolvency if this one size fits all plan is not fixed. The business tax has the same targeted unfairness that the property tax has. It is not going to be easy to fix but they will at least need to listen to experts, such as our superintendent at SBISD, Dr. Duncan Klussmann.
Sincerely,
Robert Stevenson, CPA

[Bob Owen]

Robert, sounds like you had a very frustrating expeirience with the commission. I hope that doesn't deter you from continuing to make your voice heard in political matters. There is no doubt it can be frustrating, but sometimes it does pay off. Stay tuned for the next legislative session in January 2009 when I expect more to be offered on both Taxes and school finance.