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Lone Star Project Report

Konni's 25 Percent Sales Tax on Texans

Burton wants Texans to Pay Higher Sales Taxes than California

Today, the Lone Star Project released an online video exposing State Sen. Konni Burton’s (SD10- Colleyville) plan to impose a 25 percent sales tax on nearly everything Texans purchase.  Burton’s massive increase in taxes charged to Texans would be three times higher than the sales tax rate in California.

On multiple occasions, Burton has said that Texas should replace our current tax structure with a massive consumption/sales tax on virtually every purchase made by Texans. Former Republican State Rep. Jim Keffer called this proposal a “wolf in sheep’s clothing.”

Nearly every independent study says that exchanging our current tax structure with an across-the-board sales tax system would make purchasing everyday goods far more expensive for all Texans. Former Deputy Comptroller Billy Hamilton said “Many working and retired Texans would end up paying a lot more in tax on items they buy everyday.”

But Burton’s plan goes even further.  Burton leaves open the possibility that the 25 percent sales tax would be applied to home purchases, which the Texas Association of Realtors says would “destroy the state’s real estate economy” and “disproportionately affect lower- and middle-class Texans.”

The video is running online in SD10 on multiple social media platforms. 

Transcript and Sources:

Text Facts
Konni Burton’s “Konni Tax”
A MASSIVE STATEWIDE SALES TAX INCREASE ON YOU
Konni Burton has proposed swapping the current property tax system with a statewide consumption tax, “What I have said for years and years is what I’d like to see Texas go to is totally get rid of the property tax system we have and go to a consumption tax.” [WBAP, 6/13/2017]
KONNI’S PLAN: IMPOSE A 25% SALES TAX ON TEXANS According to Dale Craymer of the Texas Taxpayer and Research foundation, a switch to a consumption tax would increase the sales tax rate to 25% [Texas Tribune, 2/5/2018]
KONNI’S PLAN: HIGHER SALES TAXES THAN CALIFORNIA According to the Tax Foundation, a 25% sales tax would give Texas the highest sales tax rate in the  nation [Tax Foundation, Accessed 8/18/2018]
Her plan: a 25% sales tax on clothes
25% sales tax on school supplies
 
A switch to a consumption tax would increase the sales tax rate to 25%, according to Dale Craymer [Texas Tribune, 2/5/2018]
New sales taxes on pickups According to Dale Craymer, the options to make up for a tax swap would be a 25% sales tax, driving most business out of business, or closing sales tax loopholes, such as increasing sales tax in items like cars, to close the gap, “Among the items that then would be taxed: groceries; gas, water and electric bills; and services from a long list of providers including doctors, dentists, nurses, other health care professionals, lawyers, accountants, real estate agents, architects, auto mechanics and construction laborers.
 
Unfortunately, taxing all those items would only generate $12 billion, cutting your property tax bill by only 20 percent, leaving $44 billion in property taxes still to pay.
 
What other exempt items could be taxed? Cars? Motor fuels? Insurance premiums? That’s double taxation as all those are currently subject to a different tax. Manufacturing materials? That could add another $12 billion or so, but it would be a huge blow to the state’s business climate as Texas would be the only state taxing raw materials.” [Texas Tribune, 2/5/2018]
Konni's plan could create a sales tax on new home sales On Inside Texas Politics, Konni Burton was asked if a statewide consumption tax would include home sales and Burton said “that’s the debate we need to have” [WFAA, 2/4/2018]
STOP THE KONNI TAX
PROTECT TEXAS FAMILES