In honor of Tax Day, Gov. Rick Perry announced this afternoon his specific proposal for tax cuts—calling for permanent exemptions and lower rates for the state’s business tax.
The Austin-American Statesman reports that Gov. Perry specifically called for expanding the business tax exemption for small businesses, allowing all companies with less than $20 million in gross revenue to exempt the first $1 million.
Gov. Perry is also calling for a cut in the rate of the tax.
While full repeal of the business tax is still the best alternative to promoting economic growth, a substantial expansion of the small business exemption and a rate reduction is the boldest reform proposed so far with a chance of making it through both chambers.
Currently no bill related to the elimination or eventual phase-out of the franchise tax bill has been heard in committee on either side of the Capitol. House Ways & Means Chairman Harvey Hilderbran has left pending in his committee a handful of bills relating to the $1 million franchise tax exemption. All franchise-tax reform bills in the Senate have thus far been referred to the Finance Sub-committee on Fiscal Matters, chaired by Sen. Glenn Hegar, and have yet to be scheduled for a hearing.
You’ll have an opportunity to hear more from Gov. Perry on this subject and more on tonight’s tele-townhall hosted by us at Texans for Fiscal Responsibility. You can listen in live tonight (Monday, April 15th) at 7:00 p.m. by clicking here.