$1 Billion to $1.5 Billion Tax Cut Bill in Texas House Senate This Week

By Jim Cardle Texas Insider Report: AUSTIN Texas Even as recently as last week with just 14 days remaining in the 2013 Legislative Session legislators in Austin were noticeably aware of the rapidly approaching deadlines through which their bills needed to move in order to have a chance of passing before the end of the Session. But some 10 days later Senators & House Members say there is plenty for conservatives to like not the least of which is a budget agreement House & Senate negotiators approved on Friday.   The session-long dcor & congeniality under a bit of duress last week with the expiration of each passing Legislative Day continues unless as State Rep. Dan Flynn (R-Van) noted recently

If your bill is not moving then things are not as congenial as youd like for it to be. But I think overall its been a Session where weve had a lot of bi-partisan support yet conservatives are continuing to push for the issues important to us.

Flynn who Co-Chairs of the House Transparency in State Agency Operations Committee said It seems like almost every bill that comes before the House somebodys mentioning the word transparency." First the budget will again be balanced without a tax increase. In fact the House and Senate are working toward somewhere between $1 billion and $1.5 billion in tax relief this week -- an important signal that Texas remains committed to a low-tax pro-growth job climate. The budget also stays beneath the constitutional spending cap again showing discipline in the face of calls for runaway spending. it includes cost-containment initiatives for Medicaid that will save hundreds of millions of dollars. And it does not open the door for Medicaid expansion. Texas House Speaker Joe Straus (R-San Antonio) said Wednesday after the House voted 130-16 in favor of Senate Joint Resolution 1:

The House took an important step today toward securing the reliable water supply needed for continued economic growth. In the coming days I expect the House to conclude a very successful session by taking the final votes necessary to address our water needs pass a balanced budget improve public education and make state government more transparent and efficient."

The economy has grown in Texas over the last two years and the budget wisely uses some of that growth on important priorities: It allows for a partial reduction of the money cut from public education two years ago puts more money toward student aid so that young Texans can lift themselves to success and delivers a well-earned pay raise to the states brave law-enforcement officers who risk their lives to keep Texans safe. The budget also takes important steps to reduce gimmicks and shell games reversing trends of the last 20 years by reducing the amount of dedicated revenue used for budget certification instead of its intended purpose. It also mention lawmakers uses more of the states gas-tax dollars for actual transportation costs reducing the amount of money that is diverted to other programs. In addition millions of dollars in fees will be reduced. Plenty of work for future legislators remains but each of these elements of the budget deal represent important steps toward taking the tricks and shell games out of the Texas budget. In other words the budget balances it increases transparency it allows for tax relief and it includes important cost-reducing strategies. Legislature approves $710 million in tax relief The Texas Legislature also approved sweeping tax reforms prior to adjournment passing a bill by House Ways & Means Committee Chairman Harvey Hilderbran (R-Kerrville) that delivers $710 million in relief to Texas businesses. House Bill 500 permanently exempts businesses that make less than $1 million from paying the Margins Tax guarantees a $1 million deduction to all businesses and cuts the tax rate 5 via a 2.5 reduction in each of the next two years. One of my key goals this session was to provide meaningful significant tax relief to small businesses" said Hilderbran. To do that we had to make the margins tax exemption permanent and Im proud to say that we accomplished that goal. The legislature first enacted the margins tax exemption for small business in 2009. Since its passage Texas has led the nation in job growth and it has been named the friendliest state for small businesses as well as the job creation capital" of the nation by numerous publications. Without legislative action this session the exemption was set to expire in 2014. Ive heard firsthand from business owners that the margins tax exemption allows them to hire more workers and invest more in their communities" Hilderbran said. The exemption has benefitted more than 29000 businesses across the state so letting it expire just wasnt an option." In addition Hilderbrans bill makes the tax fairer to all businesses by guaranteeing a $1 million exemption to those that gross over $1 million annually. H.B. 500 now moves to the governors desk for signature. Its also important to remember the good work of this budget in the context of other bills that are moving toward passage here in the Legislatures final days:

1. The House & Senate have passed important charter-school reforms to enhance choice in education;
2. Theyre working to strengthen 2nd Amendment protections for Texans;
3. Are cutting taxes;
4. They are targeting waste and fraud in the Medicaid program;
5. Are working to make our elections more secure;
6. Moving toward providing a reliable funding source for the water projects that are critical to economic growth;
7. And will leave the state with a strong healthy Rainy Day Fund to protect against future emergencies.

Said Flynn of the session-long effort to provide taxpayers with the ability to see continued transparency and legislative accomplishments

You know we found that one of our universities gave away a $500000 loan and yet it was not reported.

As you bring these things to the attention of taxpayers and various entities were finding you know what? Now we know thats stopped and in the future well have some changes being made." Add it all up and most Texas Legislators believe they have delivered a legislative record that reflects the desires and direction Texas taxpayers asked them to deliver.