Tax corporations, not the common man

The legislative proposal to permanently abolish property taxes, on its face, sounds good, but we agree with the critical assessment that, if passed, the accompanying bill to raise the sales tax would both negatively impact working-class and poorer families, and also bring additional shortfalls for critical funding.

Our legislators are right when they say something has to give – our state ranks in the lower half of median income per household, according to U.S. News and World Report, consistently hovering around the 30th rung, which makes affording steep property taxes a dim possibility for many. But why should the burden fall to the common man to account for this by hiking sales tax? Why, too, is our choice to slash property taxes or abolish them and raise sales tax, making already inflated goods even more inaccessible for people in need, such as our elderly neighbors choosing between foodstuffs and medications?

The adverse impact this would have on the average household budget aside, the proposal still short-changes communities. Already, with property taxes slashed by just 50%, we’ve seen warnings of budgetary shortfalls and hiring freezes put into place.

The state department of revenue’s forecast for what the sales tax increase would pull in ($475 million) pales in comparison to both the current budget and demand. Yes, we could all do well to tighten our belts. Certainly, there is wasteful spending in government, but that evaluation requires surgical precision, not a rough gutting.

Why not, instead, build a backstop that taxes the energy corporations at a marginally higher rate to provide the necessary revenue? Why not devise a Robin Hood tax plan that recaptures the excess gains of one district and allocates them to another district that is unable to raise the necessary revenue? Texas did it successfully, so why not make our own plan?

In 2024, the state generated $5.7 billion in revenue in mining and extractive industries, half of which went toward the budget. The resources are here and corporations want them, so why not tax it for the betterment of our communities, including our police and fire departments, and our local school districts? The property tax swap for a sales tax plan will only harm these public goods and services, not help.