Taxes: House vs Senate. Does the Dark Horse, Option #3, Win?

House

• Tax Relief in the form of a sales tax cut & 25% cut in margins tax rate
• $4.87 Billion total tax savings 
• First ever sales tax cut to a 6% state sales tax rate
• TPPF commends lowering the margins tax rate on wholesalers & retailers to .375% and the top rate for other businesses at .75%, but calls it a starting point
• HB 31 (sales tax relief) & HB 32 (margins tax relief)
• Senator Patrick’s Response: “is out of step with Texans, my office, the Senate and the governor.”

Senate

• Tax relief in the form of a property tax cut & margins tax reform
• $4.4 Billion total tax cut
• $2.4 billion margins tax relief hailed by TPPF
• SB 1 (property tax relief), SB 7 (margins tax relief) , SB 8  (Margins tax exception expansion)
• Chairman Bonnen’s Response: ““I respect the work of Lieutenant Governor Patrick and the Senate in crafting a tax cut plan. Our plan shrinks government, provides permanent tax relief, and protects the state spending cap. It is the most fiscally conservative plan on the table. That’s why it has widespread support from members of the business community.”

Austin Business Journal   Statesman  Dallas Morning News  Brietbart (Fireworks over Taxes)

Option #3

Senator Eltife is firm in his position that tax cuts are not a solution. He supports focusing on:

• paying down debt
• stopping the pattern of deferred maintenance
• focusing on unfunded liabilities in pensions 

Texas Tribune