Representative Debbie Riddle Email letter to Constituents on Interim studies

The Honorable Joe Straus

Speaker, Texas House of Representatives

2W.13

 

Dear Speaker Straus,

Thank you for the opportunity to share my constituents’ suggestions regarding study charges for our House committees during this interim period. As I’ve shared with you, the taxpayers of my district are very pleased with the outstanding accomplishments of the session regarding voter photo ID and balancing the budget with no new taxes.  However, they are not the least bit pleased about the fact that many of their top legislative priorities once again failed due to the Democrats’ strong opposition and clever blocking of bills in committees, especially in the Senate.

We can remedy these problems with your leadership and careful study and consideration of these issues during the interim. With the proper attention in the coming months, the House can be poised to score key conservative victories through the introduction of well researched, well publicized bills as soon as early filing is permitted in November of next year, with no need for time consuming negotiations or compromises. In other words, we can hit the ground running and never look back if we use our time wisely now.

To that end, I would like to suggest the following topics for further study this interim:

1) Joint-Select Interim Committee on Border Security and Illegal Immigration

Border Security

If our border were truly secure, then there would be no illegal persons, weapons, drugs, or any kind of contraband whatsoever crossing into or out of Texas. Law enforcement has repeatedly testified to various committees that it is absolutely possible to achieve this level of border security, but it requires a real commitment from our legislature.

However, it is not something that can be achieved simply by throwing money at the problem. It requires precision, and precision requires a thorough understanding of all the underlying questions and issues. Questions like:

• What kinds of resources would law enforcement need to fully secure our border? Raw manpower? Increased technology? Increased training? Greater cooperation with federal resources?
• What issues are currently keeping our border less than secure, and how much of those issues are within the control of the state legislature?
• What is the threat to Texans posed by organized crime in Mexico, and how do we confront that as a state government? What is the threat to Texans posed by other foreign dangers, such as international terrorist cells rumored to be functioning in Mexico and South America?
• What needs to be done to address human and drug trafficking across our southern border?

A thorough investigation and report by a joint-select interim committee would yield the answers to these difficult questions and many more, and position both the House and Senate to act on those findings so that results could finally be realized in this upcoming session.

Illegal Immigration

When your house is flooding, the first thing to do is turn off the water. That’s what border security does: it shuts off the flow of illegal immigration and other issues related to it. But just like a flooded house, once you stop the flooding, you still have a mess to clean up. And even if we fully stop all the illegal immigration that is coming into the state, we still have to deal with more than a million illegal immigrants who are already here in Texas.

But we never solve anything in our sessions because of disagreement and speculation over what illegal immigrants contribute to the economy versus what costs they incur. There’s rampant speculation about the legal consequences to addressing the illegal immigration population in Texas. There’s even confusion about how much authority a state really has to address it in the first place. These questions all have answers, and it is the state’s responsibility to find the answers during the interim so that we can introduce legislation that clearly and concisely addresses these issues once and for all.

The people of Texas will not tolerate further inaction on this essential policy issue. We must take action this interim or risk the consequences. Please give the people what they are demanding and allow the House to make the detailed inquiry into this issue that is so necessary. I would be honored to chair the committee if you would allow me to do so.

2)  Margin Tax/ Franchise Tax reform

Back in 2006, I was one of the most vocal opponents to the creation of the margins tax. I warned that it would stifle economic development for small businesses and it was doomed to underperform its projections. Five years later, I am sorry to say that I was correct. Much of our school finance crisis this session was the result of this ill-conceived tax, and it is past time for it to be retired in favor of a broad-based tax that more closely resembles the previous business tax structure in place previous to 2006. This is an essential area of study for the Ways and Means committee this interim.

3)  Swapping Property Taxes for Sales Taxes

There is no form of taxation more fair than a consumption tax. In essence, the taxpayer is in charge of what their tax bill will look like when you tax only what is consumed. Property taxes are by their very nature unjust, because they tax you year after year on something you may have already paid for in its entirety. It makes true property ownership impossible, because in the end, the state continues to charge you rent for your most prized personal possession. There is no reason to continue this system, when we can generate the same revenue, if not even more, through a consumption tax that effects all taxpayers the same whether they rent an apartment or own a mansion. Much of the research has already been done here in Texas by political think-tanks. All the state needs to do is invite this research in through an interim study by the Ways and Means committee so it can be put forward publicly and agreed upon before the next session begins. It may very well be the school finance solution we’ve been looking for.

 4)  Joint-Select Interim Committee on Long-Term Care

From 1997 to 2005, there was a Legislative Oversight Committee on Long-Term Care established in the Health and Safety Code. I chaired this committee in 2004, but it was abolished through legislative action in 2005. But now the state is facing a Medicaid crisis, and our greatest generation is at risk of being left out in the cold if we don’t attend to the funding problems facing nursing homes and other issues inherent in long-term care. It is important that create a joint-select interim committee to study these issues as they pertain specifically to long-term care before we are swallowed by the imminent storm that is approaching.

5)  School Choice/ Vouchers

The future of our state and nation depends on the quality of education we provide for our children. Yet we require parents to send their children to schools that don’t meet their needs, because that’s where their zipcode says they must go. Any attempt to address this issue in session is met with concerns over the impact of school choice and vouchers for private schools on our existing educational infrastructure. But if the Public Education committee were to spend the interim separating truth from fiction, the full legislature would be able to make informed decisions regarding the best way to provide the highest quality education to the largest number of students. It is plainly obvious how this could result in significant cost savings to the state, as well as significant long-term gains to our state’s economy as our quality of education continues to increase.

6)  Eminent Domain

The state is forcing a large number of senior citizens in my district out of their homes through the power of eminent domain. Many of these individuals are on a fixed income, and their property taxes are frozen at their current residence. However, they will not be able to take their frozen tax rate with them to their new residence in many cases. In fact, for so many of those affected, they won’t even be able to buy a new home for the price of “fair market value” paid to them by the state. We need to take a hard look at providing fair, financially viable solutions for our Greatest Generation, solutions that will allow them to maintain their same standard of living, after they are thrown out of their own homes by the state.

In addition to these six broad legislative priorities, one more item is very important me and my constituents this interim.

I filed HB 19 in the previous session to address the growingproblem of unlicensed drivers causing accidents in Texas and then simply disappearing, leaving the victims to literally pick up the pieces. This behavior cannot be tolerated. I would like the Committee on Homeland Security
and Public Safety to examine this issue in more detail during the interim.

Thank you for your consideration of these topics. If you have any additional questions, please do not hesitate to contact me or my staff
at either my Capitol or district offices.

Sincerely,

Debbie Riddle

State Representative

District 150

DISTRICT 150 HURRICANE RELIEF UPDATE, SEPTEMBER 16

HURRICANE RELIEF UPDATE, SEPTEMBER 16

 

AUSTIN – It has been brought to our office’s attention that some of the information in yesterday’s release may not have been accurate or may already be outdated.  Reprinted with permission from the Tomball Potpourri website now is a list of PODs at which ice, water, and food are available as of 1:45 C.S.T. on Sep 16:

 

• Old Kroger Location, FM 2920 at Highway 249 in Tomball
• Greenspoint Harvest Time Baptist Church, 17770 Imperial Valley
• Community of Faith, 1023 Pinemont
• Fountain of Praise, 13950 Hillcroft
• Texas Southern University, 3600 Rosewood at Scott
• Ripley House, 4410 Navigation
• Zion Lutheran, 3606 Beauchamp
• Jim Ponteno Courthouse Annex, 14350 Wallisville, Channelview
• PAL Gym, 2910 E. Southmore, Pasadena
• Baker Junior High, 9700 Spencer Highway, La Porte
• San Jacinto Community Center, 604 Highland Woods, Highlands
• West Town Mall, 4100 Decker, Baytown
• Baytown Courthouse Annex, 710 West Baker, Baytown
• Windsor Village, 6000 Heatherbrook
• Greater Jerusalem, 8901 Jensen
• Raul C. Martinez Annex, 1001 S. Sgt. Macario Garcia
• Football Stadium, Center & Augustine, Deer Park
• Second Baptist, 6400 Woodway
• Bay Area Community Center, 5002 NASA Road One, Seabrook

 

Additionally, a Red-Cross shelter is open in Tomball at Christbridge Fellowship Church.  The Red Cross asks that those who wish to stay at the shelter bring pillows and bedding; diapers and formula for your children; prescription medicines; toiletries; food to meet any special dietary needs they may have. These current shelters can not accommodate pets.

 

Our office has been receiving calls from constituents requesting a POD site to be open in Spring.  Representative Riddle has been working throughout the day to attempt to secure a site in Spring, and our office will send out a press release as soon as that information is available. 

 

We have also been receiving several phone calls about power outages and water outages.  It is our understanding that in some areas, water service may actually be active but not accessible due to power outages.  Some areas will require the restoration of their power before they will see a restoration in their water service.  We have been assured by all management districts and power providers that they are working as quickly as possible.   

 

If you are attempting a return back to the Houston area or have family or neighbors who are thinking of making the return, this is still not in the area’s best interest.  We are receiving calls from stranded motorists who do not have any fuel or any way to obtain additional fuel at this time.  If you must return to the area, please make sure that you are self sufficient for UP TO ONE WEEK, including plenty of food, fresh water, fuel, and any other supplies you might need. 

 

The wait for gas in the district is still as long as three hours at the few stations that are currently operational.  Please do not leave your house if at all possible, as it will consume valuable fuel. 

 

Every hour, more residences and businesses are having their power and water restored.  Progress is being made, and there are countless volunteers working without sleep and without supplies to get the area back on its feet absolutely as fast as possible.  Please do not hesitate to contact our office in Austin at 512-463-0572 with any additional questions or concerns.  When our district office is operational again, we will alert the public. 

Stay up to date with Spring Texas Information at ExploreSpring.com.

Rep. Riddle on Margin’s Tax

While browsing the blogs today (Thursday, June 05), I found myself lingering over Jason Embry’s “Postcards from the Lege” regarding the state’s margins tax.  His overall assessment of the attitudes regarding the margins tax were generally right on.  He did, however, breeze straight through a point I think could use a little more discussion.  He wrote “in the end, the plan was a net tax cut, because it cut more money in property taxes than it was projected to raise.”

True, the Texas Tax Reform Commission made all kinds of claims about the vast savings  both businesses and citizens would realize under this new, magical margins tax when it was pressed upon legislators in 2007.  But even in the midst of the campaign to earn votes for the plan, legislators like myself, who opposed the tax from its inception, knew the estimates were inaccurate and the rhetoric was skewed. 

The state never had in mind a goal of achieving a net tax cut, because that would mean that the state would have less to spend.  In fact, lawmakers created two other taxes, the cigarette tax and the motor-vehicle tax, just to make sure we didn’t create a deficit.  Despite repeated promises from the Commission that most businesses would somehow end up paying less while the state would end up reaping more, the math never made sense.  All the while, we were sitting on top of an $8 billion surplus with only $6 billion needed to pay for property tax reductions. Yet the legislature chose to create new taxes rather than giving back what the state had overcharged. 

Now, with ten days left before businesses have to write a check for their new taxes, it’s obvious that someone in the state has to be seeing a huge net tax increase.  The comptroller estimates that this new margins tax is going to generate $11.9 billion dollars, more than twice what the old franchise tax would have generated. 

So whose footing the bill?  Not the big corporations who were exploiting the loopholes in the old franchise tax.  This time around, it’s small business owners, who make up 97 percent of the all the businesses in Texas.  Recent surveys by the National Federation of Independent Business indicate that as much as 84 percent  of small business owners are going to see their tax burden increase by more than 100 percent, and more than 40 percent of those who saw an increase in their state tax liability will now face an increase of more than 500 percent over their previous bill.   

But businesses will see a huge reduction in property taxes, right?  Doesn’t look like it.  In Harris County alone last year, commercial appraisals were up more than 30 percent, already wiping out any supposed savings from the tax-swap.  Dallas County reports increases of more than 20 percent.  In Travis County, as reported by the Statesman, commercial appraisals are up almost 10 percent.  No net reductions to be found there.  Just more fuel added to a Texas-size tax-and-spend machine.

With an overall budget of more than $160 billion and surpluses that constantly hover in the tens of billions of dollars, Texas has had every opportunity to create real net tax cuts for both our small  businesses and our private citizens by identifying government waste and reducing how much the state spends.  Instead, the legislature has chosen to single out the very backbone of our economy, the small businessperson, and ask them to give 500 percent more than they are already contributing to state coffers.  If we don’t see the error of this new tax and take steps to fix it, or better yet, repeal it altogether, there won’t be any small businesses left to tax. 

 

Debbie Riddle

State Representative

District 150