Rick Perry Airs Misleading Ad

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.
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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

RankState

Average Salary

 U.S. AVERAGE47,808
33TEXAS41,009

(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-961.6160.1-801.5

(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

RankStateTax Rates
40NEW YORK4
29MASSACHUSETTS5
14MICHIGAN6
8TEXAS6.25

( 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

RankStateRate
13ALABAMA3.6
17OKLAHOMA3.9
19WEST VIRGINIA4.1
38TEXAS5.1

(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

RankState2004-05 Average Salary
1CONNECTICUT58,688

2

DISTRICT OF COLUMBIA58,456
3CALIFORNIA57,876
4MICHIGAN56,973
5NEW JERSEY56,682
6NEW YORK56,200
7ILLINOIS55,629
8MASSACHUSETTS54,325
9RHODE ISLAND53,473
10PENNSYLVANIA53,258
11ALASKA52,424
12MARYLAND52,331
13DELAWARE50,869
14OHIO48,692
15OREGON48,330
 U.S. AVERAGE47,808
16MINNESOTA46,906
17INDIANIA46,591
18GEORGIA46,526
19HAWAII46,149
20WASHINGTON45,724
21VIRGINIA44,763
22VERMONT44,535
23WISCONSIN44,299
24COLORADO43,949
25NEW HAMPSHIRE43,941
26NEVADA43,394
27NORTH CAROLINA43,348
28ARIZONA42,905
29SOUTH CAROLINA42,207
30IDAHO42,122
31TENNESSEE42,072
32FLORIDA41,587
33TEXAS41,009
34KENTUCKY40,522
35ARKANSAS40,495
36WYOMING40,392
37UTAH39,965
38MAINE39,610
39NEBRASKA39,456
40NEW MEXICO39,391
41IOWA39,284
42KANSAS39,175
43MISSOURI38,971
44LOUISIANA38,880
45MONTANA38,485
46WEST VIRGINIA38,360
47ALABAMA38,186
48OKLAHOMA37,879
49MISSISSIPPI36,590
50NORTH CAROLINA36,449
51SOUTH DAKOTA34,040

Claim 3

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

 Change in Liability under HB1Change in Liability under HB 3Net Change in Liability under HB1 and HB3
 (in $ Millions)(in $ Millions)in ($ Millions)
Agriculture, Forestry, & Fishing-86.898.311.5
Mining-256.7-22.1-278.8
Utilities & Transportation-387.5265-122.5
Construction-30191.3161.3
Manufacturing-502.2916.2414
Wholesale & Retail Trade-280.1136.3-143.8
Information-270.8508237.2
Finance, Insurance & Real Estate-961.6160.1-801.5
All Other Services-262.41,133.6871.2
Total Taxes on Businesses-3,038.13,386.7348.6

(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

RankStateTax Rate
50ALASKAnone
49DELAWAREnone
48MONTANAnone
47NEW HAMPSHIREnone
46OREGONnone
45COLORADO2.9
44ALABAMA4
43GEORGIA4
42HAWAII4
41LOUISIANA4
40NEW YORK4
39SOUTH DAKOTA4
38WYOMING4
37MISSOURI4.225
36NORTH CAROLINA4.5
35OKLAHOMA4.5
34UTAH4.75
33IDAHO5
32IOWA5
31MAINE5
30MARYLAND5
29MASSACHUSETTS5
28NEW MEXICO5
27NORTH DAKOTA5
26SOUTH CAROLINA5
25WISCONSIN5
24VIRGINIA5
23KANSAS5.3
22NEBRASKA5.5
21OHIO5.5
20ARIZONA5.6
19ARKANSAS6
18CONNECTICUT6
17FLORIDA6
16INDIANA6
15KENTUCKY6
14MICHIGAN6
13NEW JERSEY6
12PENNSYLVANIA6
11VERMONT6
10WEST VIRGINIA6
9ILLINOIS6.25
8TEXAS6.25
7MINNESOTA6.5
6NEVADA6.5
5WASHINGTON6.5
4MISSISSIPPI7
3RHODE ISLAND7
2TENNESSEE7
1CALIFORNIA7.25

Claim 5

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

RankStateRate
1HAWAII2.8
2FLORIDA3.0
3SOUTH DAKOTA3.0
4WYOMING3.2
5NORTH DAKOTA3.3
5VERMONT3.3
5VIRGINIA3.3
8IDAHO3.4
8NEBRASKA3.4
8NEW HAMPSHIRE3.4
11MARYLAND3.5
11UTAH3.5
13ALABAMA3.6
13IOWA3.6
13MONTANA3.6
16DELAWARE3.7
17CONNECTICUT3.9
17OKLAHOMA3.9
19MINNESOTA4.1
19NEVADA4.1
19WEST VIRGINIA4.1
22MAINE4.2
23ARIZONA4.3
23COLORADO4. 3
23NEW MEXICO4.3
23NORTH CAROLINA4.3
27GEORGIA4.6
27KANSAS4.6
27MISSOURI4.6
30PENNSYLVANIA4.7
30WASHINGTON4.7
32LOUISIANA4.8
32WISCONSIN4.8
34CALIFORNIA4.9
34INDIANA4.9
34MASSACHUSETTS4.9
34NEW YORK4.9
38ARKANSAS5.1
38ILLINOIS5.1
38NEW JERSEY5.1
38TEXAS5.1
42RHODE ISLAND5.4
42TENNESSEE5.4
44DISTRICT OF COLUMBIA5.5
44OHIO5.5
44OREGON5.5
47KENTUCKY6.1
48SOUTH CAROLINA6.6
49ALASKA7.0
50MICHIGAN7.2
51MISSISSIPPI7.7

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)

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