Office of the Governor Rick Perry

Texas Budget Compact, Pt. 3: No Tax Hikes

Monday, May 21, 2012  •  Austin, Texas  •  Noteworthy

One of the principles that separates Texas from the rest of the pack is our steadfast refusal to overburden taxpayers.

That’s why, when other states crank up taxes, employers and employees alike turn their eyes to the Lone Star State, confident in our dedication to the idea of letting Texans keep more of their own money.

Keeping our state taxes low is a critical element in keeping our state on top of the national economy, whether we’re talking about creating a new tax or increasing the rate on taxes already in place.

One of the best ways to keep our taxes low is to make the small business tax exemption permanent. This exemption, which spares businesses with revenues of less than $1 million from paying the state margins tax, is critical to the livelihood of some 40,000 small business owners across Texas.

Over the past two sessions, small business owners had to wait and see if their tax cut would pass. It’s time their waiting ended.

Making the cut permanent would also have the benefit of giving them the confidence they need to invest in new hires, or new equipment.

Remember, money does more good in the pockets of business owners and their employees than it does in the state coffers. If we forget that, we run the risk of falling into the "also-ran" status of our competing states.

Gov. Perry is pledging his commitment to the following principles, and asking lawmakers to do the same:

The five simple yet effective principles of the Texas Budget Compact:

Practice Truth in Budgeting
Support a Constitutional limit of spending to the growth of population and inflation
» Oppose any new taxes or tax increases, and make the small business tax exemption permanent
Preserve a strong Rainy Day Fund
Cut unnecessary and duplicative government programs and agencies