The Medina Property Tax & Stateline Commerce
After watching the first question on the virtual debate, and the Rick Perry response... I thought a little dialogue is in order and the arguments involved.
So here would be some of my talking points arguing for Medina to a prospective supporter who watched a video like that, hates Rick Perry.... but has questions.
There's my context ok?
Ok.... here goes:
(1) Those worrying about the effect of the sales /consumption tax on Stateline commerce are not understanding that the sales tax is being collected by the State of Texas and apportioned back to the local level.
So border towns are not solely dependent upon the sales tax revenue
generated in their locality.
(2) Those bordering States having the burdensome income tax and property tax will see a migration of THEIR citizens into Texas buying and renting property and working in those SAME Texas border cities to escape it (and seek freedom).
(3) With a modest increase (by broadening the base) in the sales tax over the existing threshold, the math isn't going to (always) favor the cost of gas to travel over the advantage of convenience and local commerce.
(4) Don't dismiss the very real "compounding" of the rollover effect.
Besides understanding the Freedom/property rights issue
versus "just" looking at it solely as a fiscal issue....
I believe she has it right.... from the study she references...
Take for example a sum of $2,500 saved from property tax elimination... put it in the homeowner's pocket.
now let him spend it LOCALLY.... and put it into the tills of local businesses.....
let THEM spend it again.... and then a third and fourth
rollover within an economy and continuous rollovers throughout the rest of the year.....and by the end of the year.... that same $2,500
can prosper the many, and the SALES rollover(s) from that same money
can actually generate MORE revenue.
That's my pitch.... hope it might help some on the phones and in the streets.
Cheers,
G.




















