Four point plan to reduce Texas business taxes by nearly $1.6 billion
Four point plan to reduce
business taxes by nearly $1.6 billion
On April 15, 2013 Gov. Rick
Perry announced a four-point plan to provide nearly $1.6 billion in tax relief
to all Texas
businesses currently subject to the state's franchise tax. The governor was
joined by lawmakers, the Texas Association of Business (TAB), National
Federation of Independent Business (NFIB) and Texas Conservative Coalition
Research Institute for the announcement.
"By cutting taxes for
businesses, we are helping job creators in our communities and promoting
economic growth across the state," Gov. Perry said. "Businesses that keep more
of their money can pass savings on to consumers, hire more workers, offer
greater employee benefits or reinvest it into their companies and grow their
business - all of which are good for Texans and our growing economy."
Gov. Perry's plan would
reduce business taxes by:
Reducing the franchise
tax rates by 5%
Providing a $1 million
deduction for businesses with revenue up to $20 million
Lowering the rate for EZ
relocating to Texas
from out of state a one-time deduction of moving expenses in the first year
they pay the franchise tax
Gov. Perry's business tax
relief plan would also have the effect of making permanent the current small
business tax exemption. That exemption currently impacts 29,000 businesses and
is set to expire in 2014.
"Business is the economic
engine of our state and Gov. Perry's plan will only serve to fuel that engine,"
TAB President Bill Hammond said. "Government doesn't create prosperity, business
does. By reducing the tax burden on Texas businesses,
businesses will keep hiring more workers, reinvesting in their companies and
driving the economic success of our state."
"Gov. Perry's tax relief
proposals will go a long way in helping entrepreneurs and smaller businesses
grow during this period of economic recovery," NFIB Texas Executive Director
Will Newton said. "These four specific points demonstrate an understanding of
the kind of relief small business owners have said they want. We applaud the
governor's willingness to prioritize economic development and provide relief to
our state's job creators."