Texas Insider Report: AUSTIN Texas Theres some talk of repealing & then replacing the Margins Tax which is the Business Franchise Tax we have in Texas but quite frankly Im worried we might end up with something even worse. Im starting to lean toward the idea of lets tweak it lets refine it lets do some things like specifically address the Small Business Exemption. Lets make the small business exemption permanent but we also need to expand it State Rep. Harvey Hilderbran (R-Kerrville) tells Insiders Jim Cardle. Hilderbran chairs the Texas Houses tax-writing Ways & Means Committee. Tax Reform is something were already looking at and were looking at every aspect of the Tax Code said Hilderbran. We want to make the Tax Code simple and create incentives for busineses to invest in Texas. We want them to expand those businesses they already have in the state and hire more people" Hilderbran said. Im a small businessman I come from a small business background. Small business is the backbone of this state and of this country. Were already more competitive (than most other states) and we need to attract all sizes of business to invest in Texas. To do that we need a tax policy that incentives all sizes of business to invest" Hilderbran said.
To do that we need to address the pass-through making sure all businesses are treated equal making sure on gross revenue when they pay out a sub-contractor or they pay an expense it needs to be allowed to be deducted. Right now some businesses get to deduct it some dont. Thats not fair. We need to make sure that all businesses are treated the same on pass-through issues" says Hilderbran.Hilderbran also addresses the issues of Cost-of-Goods Sold and the Retail Definition of business in Texas. I for one dont accept a Projected Deficit because a projected deficit means youre going to spend exactly what youve spent the Session before and you have less (tax revenue) coming in says Hilderbran.
I say we have to tighten our belts make government even more efficient & get more value out of the dollars we spend and weve had a history of doing that.Weve been working for the last 10 months on our Interim Studies" which means the Ways & Means Committee meets in between Sessions weve had public testimony & well have more public testimony in September & October… We work with our constituents year-round … to get ready for what were going to do next Session. Were doing the work we need to do now in order to be prepared to do that job (of addressing Texas Tax Code reforms) next Session" said Hilderbran. Dont miss the 1st of Chairman Hilderbrans 2-Part Tax Reform Preview on Texas Insider.