By Senator Ken Paxton
Texas Insider Report: AUSTIN Texas This past week
NFIB Texas released a study which found that phasing out the franchise tax will lead to 16000 new private sector jobs in Texas. Earlier this session
I filed Senate Bill 179 which would phase out the franchise tax over the next four years by reducing the tax by 25 each fiscal year.
Reducing and ultimately eliminating the franchise tax will allow Texas businesses to retain more of their pre-tax income thus allowing them to better invest and grow their businesses.
Texas is known as a business friendly state and because of that states around us are beginning to follow our lead.
In order to stay ahead of the curve and continue to attract businesses to our great state we need to find new ways to encourage business development.
The NFIB study findings show that the combination of private sector demand and the phase-out of the tax will allow businesses to reinvest in the economy by producing more goods and growing their business.
The franchise tax was originally established to generate approximately $6 billion per year in revenue to the state. However it has historically failed to generate revenue at that level.
The phase-out plan would allow businesses to keep more of their income and reinvest it directly into the economy instead of sending it to the state government.
I am encouraged by
the findings of the NFIB study and believe that this phase-out plan is a great way to create jobs
and encourage business development across our state.
State Senator Ken Paxton was elected to the Texas Senate in 2012 after serving five terms in the Texas House of Representatives. His Senate District 8 includes the majority of Collin County including the cities of Allen Frisco McKinney Plano Richardson and part of Dallas County.
