As Each Day Passes, Support for the Senate Plan Grows Larger and Larger
An article showing my plan will better support homeowners.
A Tweet from RPT Chairman Matt Rinaldi.
An editorial in the Houston Chronicle.
Here’s part of an article by Jeff Schnick on why the Senate Plan is best for homeowners.
The Senate proposal isn’t anti-business, Patrick’s plan is remarkably uncomplicated, and it’s also a viable option for the business community. It’s not quite as generous as Abbott’s plan that was passed by the House, but that doesn’t mean businesses won’t significantly benefit if it’s signed into law.
Patrick’s plan provides ample compression of the rate – plus a sizable homestead exemption – making it the correct choice this year. Greedy and ill-informed tax assessment agencies in counties around the state continue to incorrectly assess home values in certain areas, applying broad swaths of values to homes that could never sell for the same valuation. Coupled with a robust housing market – our slowdowns in Texas are boom periods for most states – it’s becoming untenable for seniors and first-time homebuyers, particularly the most vulnerable among us.
Patrick’s proposal benefits companies and landowners while also throwing drowning rural and urban homeowners a life ring until the 2025 legislative session, when more relief can be applied.
Under the Senate plan, 70% of the $17.6 billion would be directed to compressing the rate, while 30% allow for the increase of the homestead exemption to $100,000.
“But what about renters?” critics of Patrick’s proposal have asked. I agree that they are also being pounded by increases, as landlords must pass them on to their tenants. However, I’m unconvinced that landlords will share any substantial savings with renters, or if they do so, it will take years for that reprieve to be realized. And under the Senate plan, landlords still benefit considerably, just not as much as the proposal pushed by the governor.
The key thing to remember is that businesses and large landowners don’t lose under the Senate plan. They just don’t get as much, but it’s still a tremendous amount of savings.
Just because the business lobby doesn’t get everything it wants doesn’t mean the plan isn’t a bargain. This isn’t a zero-sum game. Either proposal is a monumental victory and a tremendous step toward reining in taxes.
The Senate plan — crafted under the watchful eye of one of the country’s top financial legislators, Paul Bettencourt — is the more suitable alternative in that it offers short-term aid to homeowners without sacrificing the necessary (and substantial) compression of the tax rate.
Phelan told Patrick to take it or leave it, which is stupefying, frankly, on an issue this critical to taxpayers. Take a few more weeks to debate and find common ground between the two proposals.
I agree with Patrick that the governor is unlikely to veto a bill that has an increased homestead exemption in it, but who knows?
My unsolicited advice: Patrick should stand his ground, and Phelan should get back to work.
Thank you all for your support and everything you do to keep Texas red. May God bless you and your family, and may He continue to bless the greatest state of all—Texas.
Lieutenant Governor of Texas