The Texas Chapter of the National Federation of Independent Business, a group that represents small business, recently began a radio ad blitz across the state. The ads, which are airing in Houston, Austin, and all other major cities in the state decry the state’s franchise tax, also known as the margins tax.

The tax, which was implemented in 2006, has drawn wide criticism ever since, primarily due to its structure. Because it taxes companies based on their revenue, small business is often stuck with a tax burden even if they didn’t turn a profit that year.

“In this session, we are supporting full repeal of the tax.” said a spokesman for the NFIB. “We are in favor of any and all legislation that works to reform the tax and raise the exemption threshold, offering relief to the small business community.”

An effort to combat the onerous tax is already underway, with more than a dozen bills already pre-filed to reduce or repeal the franchise tax. State Sen. Craig Estes is expected to be the leading advocate for full repeal. The Wichita Falls Republican even flew to Nevada earlier this year to speak against the tax being exported from the Lone Star State.

With incoming Texas leaders addressing a “clear mandate” for tax relief earlier this week, the question is not if taxes will be cut, but when.

Cary Cheshire

Cary Cheshire is the executive director of Texans for Strong Borders, a no-compromise non-profit dedicated to restoring security and sovereignty to the citizens of the Lone Star State. For more information visit