With a number of tax structure modification alternatives are under consideration by policymakers in Texas, one alternative is to fund a property tax reduction with an increase in the sales tax. The size of the property tax reduction being discussed is about 50% of the current levy for school maintenance and operations, or $8.5 billion in 2005. The tax change is reviewed from the perspective of several recognized characteristics of good tax policy. This paper analyzes five alternative formulations (scenarios) of the tax shift according to various sales tax rate and sales tax base-broadening options.
The Truth About Texas Education Funding
A recent story in the Houston Chronicle misleads readers about Texas education funding. Let’s set the record straight. School choice doesn’t take a single dollar from public schools. The Texas Education Freedom Accounts program, or TEFA, was funded completely separately through an appropriation from General Revenue. Public school funding is at an all-time high of...