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March 11, 2005

Vo Calls For Constitutional Ban On Taxing Food, Medicine

This just in from Hubert Vo's office. He has proposed a constitutional amendment banning regressive taxes on food and medicine. Way to go Hubert!

FOR IMMEDIATE RELEASE: CONTACT:
Thursday, March 10, 2005 David Holmes, 512-463-0568

VO CALLS FOR CONSTITUTIONAL BAN ON TAXING FOOD, MEDICINE

(AUSTIN) -- With state lawmakers scrambling to find the money to fund a
variety of new and existing programs, State Rep. Hubert Vo today proposed an
amendment to the Texas Constitution that would put one potential revenue
source off limits forever: a state sales tax on basic food and medicines.

"Putting food on the family table is tough enough for many working Texans,"
Vo said. "The least we can do is take the notion of taxing that food off
the table."

Vo said legislative proposals as recently as 1997 have attempted to expand
the state sales tax, including one that year by his predecessor to tax basic
food and over-the-counter medicines.

Lawmakers in Austin this week are again considering a vast expansion of the
sales tax that would make Texas' sales tax rate the highest in the nation by
far. The latest proposal includes expanding the sales tax to soft drinks
and other so-called "snack foods."

Vo's proposal would amend Article VIII of the Texas Constitution to prohibit
the taxation of any food, drink, or medicine not already taxed under Chapter
151 of the state tax code.

Vo said his proposed amendment would guard against any temptation by the
current or future legislatures to tax basic foodstuffs, broaden the
definition of "snack foods," or draw distinctions between over-the-counter
and prescription medicines.

"Finding state revenue is never easy in the legislative process," Vo said.
"Let's not make those who are working hard and playing by the rules pay for
our inability to get the job done."

Posted by Lyn Wall at March 11, 2005 12:53 PM | Permalink

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Comments

Good job, Hubert! The dirty secret about the junk food tax is that it would be incredibly difficult and expensive for businesses to implement, because it would a different tax than for other items. Anyone involved in sales tax reporting knows that it is already impossibly difficult to make appropriate distinctions between taxable and non-taxable items.

A snack tax would be opening the door to a full-fledged multi-tiered sales tax. It would be expensive and nightmarish for retail businesses but I must say, excellent for my computer consulting business.

My only question is, why is Hubert the only Democrat in the House to think of this?

Posted by: Dale Napier at March 11, 2005 02:42 PM

I believe our state representatives (both Dems and Reps) are missing a huge fact on the school funding issue. In my school district in northeast Harris County, the actual collection rate runs about 56 to 60% of the total tax revenue due to the district. That means almost half of the property owners (residential and business) are not paying in, and not being pursued or penalized until they choose to sell. Schools need more money now, so to get more, they keep raising the tax rates or property appraisals. In effect, they increase the taxes only on taxpayers who pay on time, letting delinquent tax payers skate or settle up years down the road.

I would suspect if a study was done on all the collection agencies for school taxes in Texas, the true collection figure would astound our legislators.

We need legislation that requires all school tax collection agencies to collect at least 90% (or more) of the revenues due for the previous tax year. Until they meet that goal, they should not be allowed to raise tax rates or property appraisals. If after say 3 years straight of 90% collection amounts and the districts need more money for growth, then tax increases can be warranted or other avenues sought out. Let’s make the existing system work before we start major changes with sales tax, etc.

We have the laws and structures in place but we need someone to enforce them and represent honest tax payers. Any Democratic Legislator up for

Posted by: Mary Westemeier at March 11, 2005 08:50 PM

I am for implementing a true "sin tax" on cigarettes by adding an additional $5.00 tax per pack and $50.00 per carton. The City Council and our Mayor should have "had the balls" to ban smoking in ALL public places. Smoking is not only highly offensive, but it is a proven killer to those who smoke and those who are forced to breathe their fumes. Something drastic has to happen to help people quit smoking.
Thank you for the opportunity to express my view.
Also, I was near Crawford today coming home from visiting an uncle up near Hico/Iredell and the thought of having Bush in The White House until January 2009 continues to make me sick. We all need to contact our Democratic members of the House and Senate in Washington DC and urge them to renew the art of "filibustering" (sp) and stop passing any of the idiotic Bush proposals. Does anyone watch the news? Have you seen what has happened to your rights to file class-action lawsuits against companies that knowingly continue to harm the public? Does anyone pay attention to what is about to happen to our Bankruptcy laws? Continue to keep silent and sit on your hands and you'll be rewarded with some other Republican asshole in another 4 years!!! Get with the program. The time is now.
Wouldn't it be something to REPLACE Governor Perry, and US Senators Cornyn and Hutchinson? Because, quite frankly I am tired of Republicans and it is time now - moreso than ever before in our history - to get these bozos out of office!
2008 IS NOT TOO LATE TO SAVE TEXAS AND SAVE AMERICA!!!!!!!!!!!!!!!!!

Posted by: Charles D. Mize, Jr. at March 11, 2005 09:12 PM

Is Vo a Houston rep? What part of Houston? Are you sure that this jumk food tax is better than the property taxes? I am sure that we need a PROGRESSIVE income tax here in Texas, but how can we get it?

Posted by: randy at March 12, 2005 01:06 PM

Yes. He is the representative for District 149 (after fending off an election challenge by Talmadge Heflin), on the west side of Houston. You can see a map of his district here: http://www.hubertvo.com/district.htm.

Posted by: Lyn Wall at March 12, 2005 01:27 PM

Sometimes a regressive tax program can be insignificant within an entire tax scheme. If you can add a new progressive tax program, it's easier to argue for across the board rate cuts on the regressive tax.

At the national level the r's led the politically popular rate decreases of the income tax. They are careful not to talk about payroll taxes, which they know are regressive. Who could be against cutting the payroll tax rates? It would benefit workers and it would benefit business. But shouldn't all payroll income be taxed? Cut the rate and make every person be taxed for every dollar.

Talking points: Make payroll tax into a flat
tax. Remove the loopholes. Reduce the tax rate. Wealthy people pay a smaller % of income than most of the population.

Posted by: jaybird at March 13, 2005 09:55 AM

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