Member's Page

Rep. Guillen, Ryan

member image

Gop tax plan hurts small businesses and low and middle-income workers  print page

by: Rep. Guillen, Ryan
05/04/2004

AUSTIN - Rep. Ryan Guillen said Monday that he opposes the proposed tax hikes on small businesses, on newspapers and magazines, on auto and boat sales, and on amusement tickets.

"A study released by the Legislative Budget Board Monday clearly shows that these decreases in taxes will benefit large corporations and utilities in Texas while costing small businesses more money. Companies that are labor intensive like restaurants, call centers, home health agencies and others will pay more based on their income that larger companies with smaller workforces that have much higher incomes," Guillen explained.

"Of the $740 million in new taxes raised in 2006, 96.7 percent will be paid by individuals and only 3.3 percent will come from businesses, according to the state budget board," Guillen stated. He said in the second year individual Texans would still pay 69 percent of the projected $576 million in new taxes while businesses will pay only 31 percent of the increase," Guillen said.

The same report shows that the Texas manufacturing industry will pay $362.9 million less in taxes in 2006 under the new plan than they would under current law.

The representative also pointed out that the projected tax increase over the current totals is $740 million in 2006. However, the increase over current levels in 2007 will drop by $164 million to only $576 million more than under the current law. "This decrease in tax income in the second year seems to indicate the proposed tax system will not be a steady source of revenue," Guillen said.

Guillen also noted that Governor Rick Perry said Monday the new tax methods being considered would hurt Texas businesses and lead to higher unemployment in Texas. Governor Perry said, "As the Texas House debates a school finance plan, I want them to hear publicly what I have already told Speaker Craddick and many legislators privately: I cannot support placing a higher tax burden on Texas workers and their wages. The only permanent solution to school finance is job creation.”

“As I have said on many occasions for many months, we cannot succeed in funding our schools and reducing property taxes if those goals are achieved at the expense of Texans’ jobs. That is too high of a price to pay,” Perry said. “A payroll tax and a Business Activity Tax will lead to the elimination and exodus of Texans’ jobs and will greatly hamper our state’s ability to attract new employers in the future.”

Finally, the state budget board report shows a striking difference in who benefits in terms of annual salary with those who make the highest salaries paying less and those who make the least paying much more.

Low income employees in Texas will pay an additional $110 million per year for 2006 and 2007; middle income level employees will pay an additional $200 million a year for the same period; but, high income workers who make over $180,000 a year will actually pay less than under current law. In 2006 the highest wage earners will pay $326 million less and in 2007 they will pay $457 million less than under current law, according to the Legislative Budget Board.

"I don't see any benefit to south Texas from the current plan being considered in the House, and I see the majority of the benefits going to big business and highly paid employees. I don't believe that new taxes to support our schools should be placed on those least able to pay their taxes and support their families," Guillen said.

From the office of: State Representative Ryan Guillen
District 31 : Duval, Starr, Webb and Zapata Counties
Contact: Communications Director Robert McVey ( robert.mcvey@house.state.tx.us )
Office 512-463-0416 -- Cell 512-779-8914 -- Home 512-374-9525 FAX 512-463-1012

Contact Info

Email

Capitol Address:
District Address:

Room 1W.3

P.O. Box 2910

Austin, TX 78768

(512) 463-0416

(512) 463-1012 Fax

Southern District Office:
100 N. FM 3167, Suite 212
Rio Grande City, TX 78582
(956) 716-4838
(956) 716-8219 Fax

Western District Office:
P.O. Box 689
131 West Main St.
Benavides, TX 78341
(361) 256-3970
(361) 701-9976 (cell)

Northern District Office:
1411 Bensdale Rd, Room 108
Pleasanton, TX 78064
(830) 569-4222 x1216

Eastern District Office:
700 FM 3168
Raymondville, TX 78580
(956) 689-1860
(956) 689-1864 Fax