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Lone Star Project Report

Rick Perry Airs Misleading Ad

Facts Dispute Perry Claims

Last week, Rick Perry began airing a television ad bragging and taking credit for everything from tax cuts to teacher pay. The Lone Star Project analyzed the ad and found that it simply does not stand up to close scrutiny. Perry's comments are consistently deceptive and incomplete.

A video "fact check" of the Perry ad can be viewed below. We have also included a written transcript of the Perry ad with each claim "fact checked" by the Lone Star Project.

Perry Ad Fact Check

Claim 1 - Deceptive

Rick Perry: A fifteen billion dollar tax cut and more money for our schools. We kept our promises to you. The average homeowner will receive a two thousand dollar tax cut.

Fact: The average Texas homeowner will receive only a $150 property tax cut this year.

Source: "[John] Sharp [Perry appointed Chairman of the Texas Tax Reform Commission] said the owner of an average home, which he described as appraised at about $118,000, would save about $150 in property taxes in the first year." (Source: Austin American-Statesman, Friday, May 26, 2006 )

Claim 2 - Deceptive and Incomplete

Rick Perry: Every teacher will receive a well deserved pay raise.

Fact: Texas Teachers will still be paid $4,000 less than the national average.

Source: Average Salaries ($) of Public School Teachers, 2004-05 National Education Association

Rank State

Average Salary

  U.S. AVERAGE 47,808
33 TEXAS 41,009

(Source: National Education Assn. Statistical Ranking of the States http://www.nea.org/edstats/images/05rankings-update.pdf)

Claim 3 - Deceptive

Rick Perry: We closed corporate loopholes

Fact: Big banks, insurance companies and large landowners will receive more than $800 million in tax cuts.

Source: Texas Legislative Budget Board Tax/Fee Equity Note HB1 and HB3

  Change in Liability Under HB 1 [in $ Millions] Change in Liability Under HB 3 [in $ Millions] Net Change in Liability Under HB1 and 3 [in $ Millions]
Finance, Insurance & Real Estate -961.6 160.1 -801.5

(Source: Texas Legislative Budget Board Tax/Fee Equity Note HB1 and HB3)

 

Claim 4 - Deceptive and Incomplete

Rick Perry: and created new protections to keep taxes low.

Fact: Texas has the 8th highest sales tax rate - higher than New York, Michigan and Massachusetts.

Source: Federation of Tax Administrators, State Sales Tax Rates January 1, 2006

Rank State Tax Rates
40 NEW YORK 4
29 MASSACHUSETTS 5
14 MICHIGAN 6
8 TEXAS 6.25

( Source: U.S. Department of Labor, Unemployment Rates for States Apr. 2006)

Claim 5 - Deceptive and Incomplete

Rick Perry: And we're protecting our job climate. The best in the nation.

Fact: Texas unemployment ranks 38th - worse than Oklahoma, Alabama and West Virginia.

Source: Unemployment Rates for States Monthly Rankings Seasonally Adjusted April 2006 U.S. Department of Labor, Bureau of Labor Statistics

Rank State Rate
13 ALABAMA 3.6
17 OKLAHOMA 3.9
19 WEST VIRGINIA 4.1
38 TEXAS 5.1

(Source: U.S. Department of Labor, Bureau of Labor Statistics http://www.bls.gov/web/laumstrk.htm)

Rick Perry: Lower property taxes, higher teacher salaries, and the largest tax cut in history. That's good for Texas.

Summary: Claims made in Perry ad are consistently deceptive and incomplete.

Check the Lone Star Project Sources for Yourself

Claim 1

Austin American - Statesman

CAMPAIGN WATCH

Friday, May 26, 2006

Expect $1,350 in savings for average home, Sharp says

The owner of an average-value home will save about $1,350 in school property taxes over the next three years, former Comptroller John Sharp said.

Gov. Rick Perry tapped Sharp to head a commission that authored an overhaul of state taxes, which lawmakers passed in their recent special session. That overhaul reduced school property tax rates by one-third over the next two years while expanding the business tax and increasing cigarette taxes.

Sharp said the owner of an average home, which he described as appraised at about $118,000, would save about $150 in property taxes in the first year and about $600 per year over the next two years. His explanation splits the difference between Perry and Comptroller Carole Keeton Strayhorn, who is running for governor.

Perry says in television commercials that the average homeowner will save $2,000 over the first three years. Strayhorn said this week that the average homeowner would save about $598 in that time.

The gubernatorial rivals came up with different figures by using different average home values and different assumptions about how far school district tax rates would inch back.

- Jason Embry

Claim 2

Average Salaries ($) of Public School Teachers, 2004-05

National Education Association

Rank State 2004-05 Average Salary
1 CONNECTICUT 58,688

2

DISTRICT OF COLUMBIA 58,456
3 CALIFORNIA 57,876
4 MICHIGAN 56,973
5 NEW JERSEY 56,682
6 NEW YORK 56,200
7 ILLINOIS 55,629
8 MASSACHUSETTS 54,325
9 RHODE ISLAND 53,473
10 PENNSYLVANIA 53,258
11 ALASKA 52,424
12 MARYLAND 52,331
13 DELAWARE 50,869
14 OHIO 48,692
15 OREGON 48,330
  U.S. AVERAGE 47,808
16 MINNESOTA 46,906
17 INDIANIA 46,591
18 GEORGIA 46,526
19 HAWAII 46,149
20 WASHINGTON 45,724
21 VIRGINIA 44,763
22 VERMONT 44,535
23 WISCONSIN 44,299
24 COLORADO 43,949
25 NEW HAMPSHIRE 43,941
26 NEVADA 43,394
27 NORTH CAROLINA 43,348
28 ARIZONA 42,905
29 SOUTH CAROLINA 42,207
30 IDAHO 42,122
31 TENNESSEE 42,072
32 FLORIDA 41,587
33 TEXAS 41,009
34 KENTUCKY 40,522
35 ARKANSAS 40,495
36 WYOMING 40,392
37 UTAH 39,965
38 MAINE 39,610
39 NEBRASKA 39,456
40 NEW MEXICO 39,391
41 IOWA 39,284
42 KANSAS 39,175
43 MISSOURI 38,971
44 LOUISIANA 38,880
45 MONTANA 38,485
46 WEST VIRGINIA 38,360
47 ALABAMA 38,186
48 OKLAHOMA 37,879
49 MISSISSIPPI 36,590
50 NORTH CAROLINA 36,449
51 SOUTH DAKOTA 34,040

Claim 3

Texas Legislative Budget Board
Tax/Fee Equity Note HB1 and HB3

  Change in Liability under HB1 Change in Liability under HB 3 Net Change in Liability under HB1 and HB3
  (in $ Millions) (in $ Millions) in ($ Millions)
Agriculture, Forestry, & Fishing -86.8 98.3 11.5
Mining -256.7 -22.1 -278.8
Utilities & Transportation -387.5 265 -122.5
Construction -30 191.3 161.3
Manufacturing -502.2 916.2 414
Wholesale & Retail Trade -280.1 136.3 -143.8
Information -270.8 508 237.2
Finance, Insurance & Real Estate -961.6 160.1 -801.5
All Other Services -262.4 1,133.6 871.2
Total Taxes on Businesses -3,038.1 3,386.7 348.6

(Source: Texas Legislative Budget Board Tax/Fee Equity Note HB1 and HB3)

Claim 4

Federation of Tax Administrators,
State Sales Tax Rates
January 1, 2006

Rank State Tax Rate
50 ALASKA none
49 DELAWARE none
48 MONTANA none
47 NEW HAMPSHIRE none
46 OREGON none
45 COLORADO 2.9
44 ALABAMA 4
43 GEORGIA 4
42 HAWAII 4
41 LOUISIANA 4
40 NEW YORK 4
39 SOUTH DAKOTA 4
38 WYOMING 4
37 MISSOURI 4.225
36 NORTH CAROLINA 4.5
35 OKLAHOMA 4.5
34 UTAH 4.75
33 IDAHO 5
32 IOWA 5
31 MAINE 5
30 MARYLAND 5
29 MASSACHUSETTS 5
28 NEW MEXICO 5
27 NORTH DAKOTA 5
26 SOUTH CAROLINA 5
25 WISCONSIN 5
24 VIRGINIA 5
23 KANSAS 5.3
22 NEBRASKA 5.5
21 OHIO 5.5
20 ARIZONA 5.6
19 ARKANSAS 6
18 CONNECTICUT 6
17 FLORIDA 6
16 INDIANA 6
15 KENTUCKY 6
14 MICHIGAN 6
13 NEW JERSEY 6
12 PENNSYLVANIA 6
11 VERMONT 6
10 WEST VIRGINIA 6
9 ILLINOIS 6.25
8 TEXAS 6.25
7 MINNESOTA 6.5
6 NEVADA 6.5
5 WASHINGTON 6.5
4 MISSISSIPPI 7
3 RHODE ISLAND 7
2 TENNESSEE 7
1 CALIFORNIA 7.25

Claim 5

Unemployment Rates for States Monthly Rankings
Seasonally Adjusted April 2006
U.S. Department of Labor, Bureau of Labor Statistics

Rank State Rate
1 HAWAII 2.8
2 FLORIDA 3.0
3 SOUTH DAKOTA 3.0
4 WYOMING 3.2
5 NORTH DAKOTA 3.3
5 VERMONT 3.3
5 VIRGINIA 3.3
8 IDAHO 3.4
8 NEBRASKA 3.4
8 NEW HAMPSHIRE 3.4
11 MARYLAND 3.5
11 UTAH 3.5
13 ALABAMA 3.6
13 IOWA 3.6
13 MONTANA 3.6
16 DELAWARE 3.7
17 CONNECTICUT 3.9
17 OKLAHOMA 3.9
19 MINNESOTA 4.1
19 NEVADA 4.1
19 WEST VIRGINIA 4.1
22 MAINE 4.2
23 ARIZONA 4.3
23 COLORADO 4.3
23 NEW MEXICO 4.3
23 NORTH CAROLINA 4.3
27 GEORGIA 4.6
27 KANSAS 4.6
27 MISSOURI 4.6
30 PENNSYLVANIA 4.7
30 WASHINGTON 4.7
32 LOUISIANA 4.8
32 WISCONSIN 4.8
34 CALIFORNIA 4.9
34 INDIANA 4.9
34 MASSACHUSETTS 4.9
34 NEW YORK 4.9
38 ARKANSAS 5.1
38 ILLINOIS 5.1
38 NEW JERSEY 5.1
38 TEXAS 5.1
42 RHODE ISLAND 5.4
42 TENNESSEE 5.4
44 DISTRICT OF COLUMBIA 5.5
44 OHIO 5.5
44 OREGON 5.5
47 KENTUCKY 6.1
48 SOUTH CAROLINA 6.6
49 ALASKA 7.0
50 MICHIGAN 7.2
51 MISSISSIPPI 7.7

NOTE: Rates shown are a percentage of the labor force. Data refer to place of residence. Estimates for the current year are subject to revision early in the following calendar year.

(Source: U.S. Department of Labor, Bureau of Labor Statistics http://www.bls.gov/web/laumstrk.htm)