Carole Keeton Strayhorn (Candidate for Governor) Talks to Houston Business Connections: Tells Publisher Aubrey R. Taylor why Harris County voters should choose her in the Nov. 7, 2006, General Election STRAYHORN: "Texans are growing outraged as they learn the details of the largest tax increase in Texas history—the one that Governor Rick Perry proposed, imposed and finally signed into law. Gov. Perry's tax is a massive increase in business taxes that will add $6 billion dollars a year to the state's budget, and includes an unconstitutional income tax on partnerships and unincorporated associations. It creates a $23 billion hot check, increases the number of businesses that will have to pay or file taxes by 200,000 organizations and increases business taxes by an unbelievable 200 percent. What do Texans get for all that? Not much. The average homeowner will see a $52 reduction in school property taxes for one year only. That $52 will buy one more Coca-Cola from a vending machine once a week for one year. Furthermore, most of our senior citizens and Texans with disabilities will receive no property tax cut at all. The Governor's tax provides a paltry pay increase for teachers and a pittance of property tax relief that will evaporate almost immediately; it postpones only temporarily additional court action; and merely punts our state finance and budgetary problems just past the November elections. The Governor is bankrupting our children's education and their future for his own political future, and there is no economic miracle that will close the financial gap this plan creates. There are only two ways to close a chasm of that magnitude: future tax increases that Gov. Perry is hiding from Texans until after the November election; or massive cuts in essential services like education already devastated by this administration's fiscal indifference and dismantling of our public schools. Under this Governor, the state's budget has increased $44 billion or 45 percent. Spending is at its highest level ever, while dollars going to our children and our educators are at their lowest level ever. Never have Texans seen such fiscal irresponsibility. To help business owners estimate how much more they will pay in taxes under Governor Perry's plan, I recently unveiled a tax calculator on my website: www.window.state.tx.us. The calculator is a way all businesses can get accurate and confidential estimates of their taxes to prepare for the future. • For example, a small manufacturer that had gross revenue of $10 million last year will see a 50 % increase in taxes, from $21,400 to $32,000. • A convenience store that had $10 million in gross revenue last year will see a 207 % increase in taxes, from $3,700 to $11,500. • A dry cleaner (considered part of the service industry and not subject to the state's old franchise tax) with $1 million in gross revenue last year previously paid no taxes, but will now pay $6,120. As these taxes are passed on, Texans will inevitably pay more for most everything they purchase and every service they use from dry cleaning to hair cuts, landscaping to doctor's office visits. Texas business men and women need to know how much more they will be paying. In virtually all cases, business owners who did not make any money will still have to pay taxes because the tax is based largely on a portion of gross receipts, not profits. To use the tax calculator a business owner will have to know their company's gross annual receipts and either the costs of goods sold or payroll. As Governor, I will repeal the largest tax increase in Texas history and we will implement "Strayhorn Solutions," my long-term plan that will not increase taxes, but will provide revenue for the state. According to Strayhorn Solutions, I will: • Reinstate e-Texas Performance Reviews and the Texas School Performance Reviews to the Texas Comptroller's Office. If that is done immediately, an additional $3 billion in taxpayer savings can be found. • Implement Video Lottery Terminals in racetracks where gaming has already been approved. This change could provide $2 billion in new money to meet the state's needs. • Close old corporate loopholes in the franchise tax law to provide another $1 billion without raising taxes on our service industries; and • Eliminate the taxpayer-funded corporate welfare slush funds in the Governor's Office. At the moment, there are $300 million in those funds. Texas is great, but we can do better. Our tax dollars can be better used to cut property taxes, to educate our children and to protect their health. And in a Strayhorn Administration, we will." | 
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