With the comptroller having now forecasted that lawmakers will have $113 billion in general revenues, Texans should expect meaningful tax breaks from the Legislature.
As Cary Cheshire reported yesterday, this forecast includes an 8.9% increase in sales tax revenues.
These dollars represent more than the legislature can actually spend even with the state’s flimsy spending limit.
Rather than find creative ways to blow the cash without touching the limit, or hoarding the dollars, lawmakers should be encouraged to return the funds to the productive economy through tax relief.
Abolishing the gross margins tax would send a serious message to entrepreneurs in Texas and to those looking to move here. Likewise, chiseling away at the property tax would offer a direct benefit to residential and business property owners alike.
Whatever the specifics, significant and meaningful tax relief should be first on the agenda for the 84th Legislature.