The Canadian Record (Canadian, Tex.), Vol. 98, No. 50, Ed. 1 Thursday, December 15, 1988 Page: 33 of 36
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STATE CAPITAL
HIGHLIGHTS
By Lyndell Williams
TEXAS PRESS ASSOCIATION
AUSTIN-Only a few days after
Speaker Gib Lewis’ prediction
that House members won’t raise
taxes, the specter of a new tax bill
raised its ugly head, only to draw
fire from Gov. Bill Clements.
Meanwhile, a blue-ribbon panel
issued its final report which leaves
the door open to a state income tax
for all Texans.
However, the Select Committee
on Tax Equity concluded last
week that Texans are not ready
for personal or corporate income
taxes, but that those measures will
be needed in the future.
The mini-skirmish over new
taxes arose after the Legislative
Budget Board revealed that its
proposed spending plan exceeded
the revenues that Comptroller Bob
Bullock said were available.
No big deal, said LBB chairman
Lt. Gov. Bill Hobby. It happens
every year and we’ll look at
trimming $2 billion off the
proposed spending.
The panel of lawmakers drafts
the budget each interim and is
likely to build “fat” to cushion
state agency inteicsts against the
legislative meat cleavers.
In essence, the lawmakers must
trim $2 billion or raise taxes,
and that, after all, is the central
issue of the coming session. Gov.
Clements jeered at the spending
plan and said he will veto any
new tax hike approved in the next
session.
Out in Capitol halls, some tax
advocates scoffed at his threat,
reminding that they made him cat
similar words the session after he
was re-elected.
But wise heads are convinced
Clements will veto a tax bill this
time, because:
• Texas is past the economic
crunch which enabled Democratic
senators to force his feet to the fire
and sign; and
• The governor would jump
at the chance to veto a tax bill
and even the score for the earlier
coercion.
Tax Illegal Drugs
Never say never? One new
tax bill which Clements might
willingly sign is one provocatively
called the “Al Capone Tax” by its
author, state Rep. Billy Clemons,
D-Pollok.
The bill requires a tax stamp
from the comptroller’s office on
controlled substances and mari-
juana, said Clemons, who built in
a tax rate of $200 per gram of co-
caine and $3.50 per gram of mar-
ijuana.
Thus, when drug dealers are
arrested and their cache of illegal
drugs is found with no tax stamps,
they face the additional charge of
felony tax evasion.
Clemons said Al Capone was
never busted for bootleging, but
was nabbed on tax evasion. He
said Minnesota has had such a law
in place for two years.
The bill failed last session
through a misunderstanding that
it would legalize drugs, Clemons
said, which is absolutely not the
intent.
Instead, it aims to help law
enforcement officers in the war
on drugs. Clemons is expected to
have the support of several anti-
drug groups.
Bingo IVobe
Amid charges some of his staff
grant special favors to bingo op-
erators, possibly in exchange for
kickbacks, Comptroller Bob Bul-
lock launched his own investiga-
tion of his bingo division.
Although the investigation has
produced no evidence to substanti-
ate the charges, polygraph exams
are being offered to all 25 employ-
ees of the bingo division.
Bullock also sought to close
three bingo halls in the Houston
area for violating state bingo
laws, and recommended that bingo
licenses be pulled for 21 charitable
groups.
Legal bingo games have gen-
erated nearly $1.4 billion since
1981, including about $7 million
in state taxes and $25 million in
local taxes.
Richards Hits Million
State Treasurer Ann Richards
reported she had passed the $1
million mark in contributions for
her expected governor’s race in
1990.
Her likely opponent, Attorney
General Jim Mattox, responded by
saying he will probably have $3
million raised in 1988.
Regents Approve Merger
The University of Texas System
regents voted as one to merge with
Pan American University.
If the legislature approves it, the
move could ward off a lawsuit ac-
cusing the state of funding dis-
crimination for higher education
in Hispanic South Texas.
Short Takes
• The Texas Supreme Court
ruled last week that illegitimate
children can sue over the wrongful
death of their biological father.
Previously, they could sue only in
the case of their mother’s death.
• With a population of 7,429,
the city of Breckenridge has hired
former Speaker’s aide, Gordon
(Doc) Arnold as an “economic
consultant,” preferring the term
to “lobbyist.” His salary: $24,000
a year, plus $200 per month
expenses.
• Port of Galveston officials
approved a letter of intent with
Pride Cruise Lines for one-day
“cmises to nowhere” featuring
casino gambling.
• Ochiltree County takes the
honors as Most Republican County
in Texas, with 83 percent of the
vote last month going to George
Bush.
jtlaking
a list . . .
9nb (Checking
3lt Ctuicc
Texas Coalition for Safetv Belts
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THURSDAY 15 DECEMBER 1988
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Ezzell, Ben & Ezzell, Nancy. The Canadian Record (Canadian, Tex.), Vol. 98, No. 50, Ed. 1 Thursday, December 15, 1988, newspaper, December 15, 1988; Canadian, Texas. (https://texashistory.unt.edu/ark:/67531/metapth520210/m1/33/: accessed July 10, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Hemphill County Library.