Gov. Perry Proposes Tax Relief for Texas Businesses
Its Tax Day again, a reminder to everyone that they have to take some time out of their busy schedules and make sure the federal government has gotten its share of their hard-earned money for the year.
They'd better pay up, too.
Judging by the budget President Obama finally got around to filing a couple weeks ago, he has big plans for that money, not to mention the money of our children and our grandchildren, too.
In Texas, we're dedicated to the idea that money does more good in the hands of taxpayers than in the hands of government.
That's why we consistently hold the line against calls for more taxes and insist upon balancing the budget the right way, by limiting spending.
If you're new to Texas this year, and with our population growing by 1,000 a day, I know a lot of people are, you can stop trying to file your state income taxes because you don't owe any.
Our low tax burden is one of the main reasons Texas has been such an attractive destination for people chasing their ambitions, employers and employees alike.
Our dedication to low taxes, reasonable regulations, fair courts and cultivating a world-class workforce has helped our state become the epicenter for job creation over the last decade.
If we're going to keep it that way, however, we need to continue working hard to make it easier for businesses of all sizes, from garage-office startups to Fortune 500 firms to thrive and excel in the Lone Star State.
To that end, today I am calling for a collection of tax cuts, focused on relieving the burden on employers in our state, leaving them with more of their own money to invest in new equipment and to hire new workers.
To begin with, I'm calling for a five percent, across-the-board cut to existing franchise tax rates.
This will apply to every business, large or small, currently paying the franchise tax.
Secondly, I'm calling for a million-dollar business tax deduction for any company with annual total revenue of $20 million dollars or less.
This effectively makes permanent the temporary $1 million franchise tax exemption we've been passing session after session.
It also greatly lessens the burden on companies that barely missed the cut on that exemption.
In total, this deduction will keep close to $1 billion in the hands of small and medium-sized companies to add more workers and equipment.
I'd also like to see a rate deduction for companies that cut down on paperwork by utilizing our EZ File system.
I'm also proposing to make Texas even more appealing to outside businesses by allowing firms to deduct the cost of moving to the Lone Star State.
These moves will contribute to a climate of job-creation and continued prosperity for all Texans.
Economic Development »