Bonnen Proposes First Sales Tax Cut in Texas History: House Unveils s $4.87 Billion Tax Cut Plan

Franchise Tax Reduction offers Permanent Tax Relief for Individuals Business Texas Insider Report: AUSTIN Texas This is the biggest broadest and boldest tax relief plan of the legislative session" said State Rep. Dennis Bonnen (R-Angleton) chairman of the House Ways & Means Committee yesterday as he unveiled the Texas Houses sweeping tax relief plan to provide nearly $5 billion in permanent tax relief for every individual and business in Texas. If our experience in recent years has taught us anything its that property tax cuts are quickly swallowed by local rate hikes and rising appraisals" said Bonnen.    Our plan provides lasting tax relief to every family and business and it is fiscally responsible because it abides by the spending cap. Most importantly this tax relief is permanent" said Bonnen.

It cannot be eroded by local tax hikes or rising appraisals. In fact the only way these tax cuts can disappear is by a vote of the Texas legislature." Texans wont have to take our word for it that we cut their taxes. They will see it on every receipt" Bonnen said.

House Bill 31 offers the first state sales tax cut in Texas history reducing the rate from 6.25 to 5.95. The average family of four will save $172 per year. Employers which currently pay 40 of all sales taxes collected in Texas will realize substantial savings as well.

Our tax relief plan is the only one that has widespread support from business groups that represent a broad spectrum of the economy and it is the only one that will put more money into the hands of taxpayers stimulate the economy and limit the size of government" said Bonnen as the House stood at-ease to hold its press conference attended by dozens of members from the Texas House of Representatives. This is tangible tax relief that will benefit families and businesses of all sizes every time they buy something."

House Bill 32 cuts the franchise tax rate by 25 across-the-board for all businesses. Retailers and wholesalers will pay 0.375 and all other businesses will pay 0.75. The bill retains current exemptions that allow 900000 small businesses to pay no franchise tax. Bonnen noted that while the state controls the franchise tax and the sales tax it does not control property taxes. Any property tax cut passed without major systemic reform is guaranteed to meet the same fate. Taxpayers wont get the relief they were promised well see no real economic benefit and Texas will have abandoned one of the bedrock principles of fiscal responsibility by busting the spending cap" Bonnen said.