Most Americans believe their tax bills are too high.
One top Republican Governor agrees.
And Texas Governor Greg Abbott’s bold new plan is music to homeowners’ ears.
Governor Greg Abbott (R) recently set a new goal of eliminating property taxes for homeowners in the state of Texas.
The Governor believes this could become a reality due to the significant economic growth of the state.
Abbott, along with Lt. Governor Dan Patrick (R) and House Speaker Dade Phelan (R), have promised to make reducing property taxes a top legislative priority.
A bold new plan
While speaking at the Texas Public Policy Foundation, Abbott explained his vision to eventually end property taxes.
“How should we approach it?” Abbot began. “We must go big. We must dream big. You’ve got to dream it and then you’ve got to do it. In Texas, we don’t do things half-heartedly. We go big, and we make sure we accomplish our big vision. Texans want to own their property, not rent it from the government. Under my property tax plan, we will put Texans on the pathway to eliminate property taxes.”
Initially, Abbott plans on reducing the amount of property taxes paid to school districts, which he said will cut property taxes by 29%.
“This approach will put us on a pathway where in the ensuing sessions we will be able to get to zero for your property tax rate, for your school district property taxes,” Abbott said.
He also took issue with critics who claimed his plan was unworkable, saying that “Texas has the number one fastest growing economy in the United States of America. Our economy is now more than $2.3 trillion a year. We’re trying to spend $17 billion out of an economy that produces $2.3 trillion a year. That’s .007% of our whole GDP, less than one-tenth of one percent. We can do it. Our largest source of revenue in the state is the sales tax. Texas is #1 for population growth. The hundreds of thousands of people coming to Texas every year are paying sales taxes. Texas has continued revenue streams.”
A tax cut that pays for itself in other ways?
Abbott reasons that once homeowners receive a bill that’s zero dollars for school district property taxes, they’ll have more money to spend and thus pay more in sales taxes.
“Texas can and must find additional ways to cut spending wherever we can,” Abbott continued. “There’s a more strategic way of cutting spending, and that’s by dedicating revenue to make sure that you will not spend that money in the first place. You can always dedicate revenue or cut spending to make sure we live within our means.”
The first special legislative session lasts for 30 days.
If an agreement is not reached after 30 days, Abbott said he will continue calling special sessions until a property tax relief bill is passed.
Patriot Political will keep you up-to-date on any developments to this ongoing story.
