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10:44 am CST - May 14, 2009
Posted under On The Record
Conservatives Have Nothing to Fear in Closing Tax Loophole
By Bill Hammond
Texas Association of Business
True conservatives, and the voters who elect them to office, know the only good tax loophole is a dead tax loophole.
And 25 House Republicans helped kill a tax loophole on Wednesday, May 13, when they voted for House Bill 2154 by state Rep. Al Edwards, D-Houston. The legislation, which goes now to the Senate, will repay the student loans of doctors who agree to practice in medically underserved areas of the state.
To fund the loan repayments, HB 2154 closes an excise tax loophole on smokeless tobacco that has inexplicably persisted for years. The measure taxes smokeless tobacco on a per unit basis – just as the state does cigarettes and alcohol – instead of on its sales price.
It makes perfect sense, and it’s fair. That’s why Americans for Tax Reform (ATR) and the American Legislative Exchange Council (ALEC) have endorsed this approach. If the state is applying a tax – and, for the record, the Texas Association of Business, has an unmatched history of opposing tax increases in this state – common sense says the tax must be applied evenly. Government cannot be picking winners and losers.
So I am going to have to disagree with my friends who posted editorial commentary on The Texas Insider trying to tar those House Republicans with the tax-increase brush. I’m sorry but when you try to portray Republican Rep. Warren Chisum as a tax-and-spender … I just can’t go there.
Closing the excise tax loophole on smokeless tobacco is not a tax increase. The excise tax on smokeless tobacco already exists in state law. HB 2154 simply applies the exact same tobacco excise tax on all smokeless products. That’s good, because every time, we close a tax loophole, it’s a victory for all taxpayers.
Finally, the claim that voters are going to punish lawmakers for treating all smokeless tobacco products the same, is patently absurd. I find it hard to imagine that Republican voters want to punish lawmakers for closing a tax loophole to fund a program designed to help attract doctors to medically underserved areas.
Rep. Warren Chisum, and others, identified a great way to help attract physicians to rual Texas, and the 114 Texas counties that are currently underserved. That’s why TAB was proud to get behind this legislation early on. We salute all the members who rose above misleading claims to support this measure, now contained in HB 2154.
Let’s be consistent in our anti-tax rhetoric. If new taxes are bad, tax loopholes are just as evil. Conservatives need to oppose both, and quit cutting each other up.
12 Comments
Dan
2:19 pm CST
May 14, 2009
Well when you have been burned as many times as we have by so called “Conservative Republicans” you can not blame us for being skeptical. I am going to investigate this more and see if what you are saying holds true.
Thank you.
Clay
2:56 pm CST
May 14, 2009
The government does not need to pay for medical school for doctors. The government does not need to get involved in the distribution of doctors. The market allocates cost effectively while the government allocates based on political correctness and raises the cost for everything. It just shifts those costs over to the taxpayers. This would make endentured servants out of doctors who agreed to this scheme. It is wrong on all fronts.
Mike
4:00 pm CST
May 14, 2009
Loophole or not, it was just another politian finding a way to get more dollars from Texans. Sending doctors to BFTexas will only cause more problems. They will set up shop and as soon as they can, they will leave. Austin could then come up with a new tax to keep the doctors there.
Paul
4:02 pm CST
May 14, 2009
Basically what this article says is that “true conservatives” like to create government programs and then scheme as many ways as possible to tax something or someone to pay for it.
I don’t know who Bill Hammond is, but you can bet that when you see or hear the term “Texas Association” of anything, you can bet that they have paid a pretty penny in lobbying to get certain things accomplished via legislation….there’s something in it for them.
Does the last sentence make sense to anyone at all….
If conservatives are supposed to oppose new taxes and also oppose tax loopholes, and this new bill closes a tax loophole by creating a new tax, why didn’t we just do away with the original tax, thus doing away with the original tax loophole…..THAT WOULD BE TRULY CONSERVATIVE.
Drifter
4:17 pm CST
May 14, 2009
More of the same government absurdity: Financing healthcare with something you are, simultaneously trying to preserve as a tax base and abolish.
And if you finally abolish tobacco, who picks up the tab for healthcare. I think we know…
Pathetic public insanity!
Anna Sentari
4:22 pm CST
May 14, 2009
Dan is right – too many instanced of ’smoke and mirrors’ around here to believe ANYthing we hear from these inbedded politicians.
Harold
4:59 pm CST
May 14, 2009
I guess I need to study up on being conservative. So we are going to raise taxes on every smokeless tobacco user in the state so we can help the rural counties get a doctor. This is the same as the pos Robin Hood plan for schools. The rural people sit out there in their low polution, low crime, utopias, but then you expect the rest of the state to provide your education and now your doctor needs. I don’t blame you for living there but why should the rest of the state be taxed to help you. Raise your county taxes and buy your own doctor. Oh, and Mr. Hammond, Like I said yesterday, Why don’t you get to work on the real loophole. The ag exemptions and hunting land exemptions.
John Wareagle
5:14 pm CST
May 14, 2009
BULL HOCKEY!!! The Tax Money will end up in the General Fund.
Sam
8:48 pm CST
May 14, 2009
I find it “patently absurd” that you’d believe voters will buy your skewed logic.
Paying for physician education ultimately benefits only the teaching institutions and the politicomedical staffs … and the governmental agencies that get to regulate the poor endentured doctors.
Closing a loophole in a law that punishes law-abiding citizens is nothing to be proud of … unless, of course, you’re a liberal.
James P. Smith
9:55 pm CST
May 14, 2009
Does he think BHO closing the offshore loophole for American business is a good idea?
Gregory
7:50 am CST
May 14, 2009
The extremely high tobacco and cigarette taxes in this country are nothing short of DISCRIMINATION against a small minority of people.
What other small minority will they go after next? Will it be a product you enjoy?
Julie
9:06 am CST
May 14, 2009
First…I have to say that these responses to this stupid bill are so right on. Any one of you want to run for office? I would vote for you!
) I agree with ALL OF YOU! I enjoy real conservative ideas and common sense. Nope, that last paragragh does not make sense. Our govt. trying to place doctors? Hello? What do they not get about free market? And I thought our state is run mainly by conservatives and against big govt.? Frustrating isn’t it? They create more problems by getting involved and should stay out of it. I agree with Harold:
“Raise your county taxes and buy your own doctor.”
Simple solution. The way it is supposed to work. Little town wants a doctor? Little town comes up with a solution to solve THEIR problem. Instead we must involve all people who smoke? Smokers who have nothing to do with the little town needing a docto!!! Yes DRIFTER….the word is: “insanity”……
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