I don’t have to convince you that there is no political party that wants lower taxes than the Libertarian Party. That might make you think we like it when politicians say they are going to eliminate your property taxes. Never mind that many of those politicians are not running for the state legislature, which sets tax policy.
It is important to understand that there is no state property tax. In Texas, property taxes are for local government entities such as counties, cities, school districts, and emergency services. If a politician says they are eliminating the funding for these entities, are they anarchists?
A few people are suggesting property taxes can be replaced with increased sales and consumption taxes. Is that better? Will local entities be able to set those tax rates? I served on city council where we set our retail tax rates already. A potential downside is tying revenue to a single source. Most businesses like to have diversified revenue sources so that they are not entirely dependent on one product. If your school funding shrinks because there is less retail activity in your area, is that better than having some revenue diversity from property values which may tend to be less volatile?
Notice that the politicians that are charging the castle with promises of property tax relief don’t say anything about spending. Anyone talking about taxes while remaining silent on spending should be ignored. When I was on city council we addressed tax policy in our budget discussion, which is both revenue and spending. Politicians must think we are stupid when they promise lower taxes without identifying the spending cuts.
You should also ignore any politician that advocates across the board spending cuts. It is very easy to promise a 5% across the board cut. It is much harder to identify what departments will close and what services are no longer offered. As an example, the Texas Agriculture Department inspects scales at BBQ restaurants to make sure you don’t get a skimpy plate of brisket. This is one of over 200 statutory requirements of that department. We can cut spending, but it takes courage to identify what is being cut.
I recognize that the appraisal system seems burdensome, bureaucratic, and byzantine. Tax policy should be simple and fair. I am fully in favor of reform where possible. Texas has it better than most since we avoid income tax, which clearly is the worst approach.
The governor of Texas can be a leader on a responsible budget. Last year it was $321 billion. If I am elected governor, I will work on identifying spending cuts first, which will lead to lower taxes. I will also respect local control and the ability for political subdivisions of the state to implement reasonable and responsible tax policy.
Beware of those who make popular promises with no detail. Honesty is the best policy.