Posted on 06/09/2015 5:40:07 AM PDT by SeekAndFind
When a state success story is as big as Texas’ is, the good news needs sharing beyond the immediate borders. When an already business-friendly state becomes even more hospitable to growth and innovation, that message needs to go worldwide. That’s exactly what Texas Governor Greg Abbott plans to do in the coming months. Already playing from a position of strength, the governor shored up Texas’ positive reputation even further this week, by securing a new business tax cut. In the legislative session that ended in Austin last week, legislators approved a 25 percent reduction in the state business franchise tax.
Of course, this newly approved cut is not the only economic enticement luring new businesses to Texas. The Lone Star State levies no personal income tax and no corporate income tax. Additionally, the franchise (or “margins”) tax will be cut by $2.56 billion over the next two years, according to Governor Abbott. Texas is also making new investments in roads and education.
In a legislative-session recap for reporters, the Governor told reporters, “When you consider what we achieved during this session, as well as the challenges other states are facing, I think we have a tremendous opportunity to capitalize on our current position.”
Beginning in July, Abbott will begin a series of strategic trips around the United States with the goal of closing economic development deals with corporate leaders. Rather than stick Texas taxpayers with the bill, Abbott will pay for the travel with money from the nonprofit TexasOne, a group that his gubernatorial predecessor (and now 2016 presidential hopeful) Rick Perry helped create.
(Excerpt) Read more at forbes.com ...
They should cut the state taxes everywhere except Austin. Since all of the liberals there really believe higher taxes create wealth, they really would have no argument.
Sound like Texas is flush. Guess they won’t be needing that Federal flood aid after all.
Meanwhile other states nearby are raising taxes making Gov Abbott’s task even easier when it comes to luring business. Texas, how long will you be among us???
“Sound like Texas is flush. Guess they won’t be needing that Federal flood aid after all.”
That is quite the statement.
Texas may or may not be “flush.” They may just believe that by lowering their tax RATE they will attract more businesses to relocate, thus increasing their tax BASE resulting in greater revenues.
You add the concept that, since they are “flush” they should not get the same return of their federal taxes paid as, say, California for its drought, since Texas more wisely managed its budget and it does not, therefore, “need” the flood aid. Texans get flood aid from the feds because they pay federal taxes, not because they squandered their money on luxuries and stupidity and can’t afford to weather a simple crisis.
They ought to invest a billion of that in more people-proof fencing on the southern border.
1. Straus in the Texas House was insistent on sales tax reductions instead of property taxes. I’d rather pay a higher sales tax in exchange for reducing or eliminating the property tax. The compromise is better than nothing but conservatives could have made great gains in changing tax code except that the Texas House is anything but conservative.
2. The margins franchise tax represents 5% of state revenue and comes at an extremely high compliance cost for small businesses. 25% is a start. They should have reduced it by an additional 75% this session.
The franchise tax needs to go.
3. The legislature seems intent on turning most Texas roads to toll roads. Oh well, there are special interests spending tons of PAC money to make it so. The fuel taxes should be dedicated to roads and tolls should be a non-starter.
4. Protections against the pending supreme cabal decision on gay rights were ignored. So were protections for home schoolers. The open carry law passed stripped language preventing police from stopping carriers solely to check papers (or more accurately, plastic).
Bottom line of the session: with a conservative Lt Gov and Gov, the House’s liberal leadership was playing defense. Gains were made as a result, but changing the Texas House leadership has the potential to cause a true conservative revolution.
Straus and his lieutenants like Byron Cook need to go.
They're cutting business taxes. They aren't cutting sales taxes or any of the taxes individuals pay.
I think overall the legislature did a good job despite having to battle RINO Joe Strauss.
I am disappointed they didn’t do more to gain control over these appraisal districts that are literally taxing folks out of their homes.
I think the average homeowner will realize...up to $125 in tax savings from the increase in homestead exemption.
$10.42 savings per month. Whelp, guess it’s a start. Guess it’s better than a sharp stick in the eye.
Thanks for the info!
“... I’d rather pay a higher sales taxin exchange for reducing or eliminating the property tax. ...”
I agree on the above!
>>I’d rather pay a higher sales tax in exchange for reducing or eliminating the property tax. ...”<<
I thought going into the legislative session this was the plan Lt Gov. Dan Patrick was seeking. Kinda fizzled.
Now, we will have to wait a couple of years till they meet once again.
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