Dear Representative:
On behalf of the more than 28,000 Texas members of the National Taxpayers Union (NTU), I write to urge that you support House Bill 735. Sponsored by Representative Joe Straus (R-San Antonio), HB 735 would eliminate the Telecommunications Infrastructure Fund (TIF) program. The TIF is a 1.25% tax on phone service that was created in 1995. Though advertised as a temporary tax to fund broadband Internet services for libraries and other institutions, it still drains money from Texans' wallets today. The time has come for this tax to be eliminated once and for all.
The TIF was originally scheduled to last only 10 years, in the process raising the tax burden on Texans by $1.5 billion. Twelve years later, the tax persists and its revenue is simply being dumped into the General Fund. The Legislature has played games with this taxpayer-funded slush fund for too long. If this tax isn't repealed, an additional $211 million will be taken from the phone bills of hard-working Texans this year.
With the state facing a massive budget surplus of $14 billion, there is absolutely no excuse to perpetuate this unfair tax. In good economic times, the state shouldn't continue to collect a tax that should have been terminated long ago.
HB 735 would eliminate the TIF and deserves your unqualified support. We look forward to working with you in the future to continue an informed dialogue over proposals that protect and expand taxpayers' rights.
Sincerely,
Andrew Moylan
Government Affairs Manager