Bill will reduce the business tax burden on the driving force of the Texas economy
AUSTIN - On Friday the final day bills could be filed during the 2009 Legislative session Senator Dan Patrick filed Senate Bill 19 that would provide permanent and real tax relief to thousands of Texas businesses.
The bill represents the culmination of months of negotiations between budget writers and business leaders. The bill which has bi-partisan support was first co-authored by Sen. Leticia Van de Putte (D-San Antonio).
I am thankful for Lt. Gov. Dewhursts support and for Sen. Van de Puttes help in working this bill to offer real tax reductions to Texas businesses. These businesses are the driving force of our economy Senator Patrick remarked.
SB. 19 will bring significant relief to 90 of the businesses now subject to the tax by eliminating or reducing the tax on up to 385000 Texas businesses. 266000 businesses with revenue under $1 million will now be free from the tax. The reduction by about a third in the EZ tax formulation will hopefully encourage more businesses with revenues between 1 and 10 million dollars to use this method. If they choose the EZ tax they will also eliminate their compliance (accounting) costs Senator Patrick added.
Small businesses are the most powerful engine driving the Texas economy and we must do everything we can to help them grow especially in this challenging economy. Senate Bill 19 would lower taxes on those businesses and allow them to re-invest their savings in people equipment and innovation said Lieutenant Governor David Dewhurst.
Senator Patricks Senate Bill 19 would greatly decrease the new Franchise Tax burden on small businesses that generate less than $10 million in total revenues. Those businesses would realize a reduction by eliminating the tax on businesses under $1 million in total revenues (up from $300000) and a reduction in the Tax Rate from .575 to .40 for businesses between $1 million and $10 million in total revenues.
Reducing and reforming the margins tax must be a top objective for the 81st Legislature. Senator Patricks legislation (SB 19) will help achieve those objectives by creating a needed incentive to keep Texas businesses on a sound footing stated John Colyandro Executive Director of the Texas Conservative Coalition Research Institute.
Will Newton Executive Director of the National Federation of Independent Businesses (NFIB) / Texas remarked Senator Patrick is a proven friend of the small business community. He understands the implications of over-taxing and over-regulating the very people who create jobs spur entrepreneurship and historically lead our economy out of recessionary times. Senate Bill 19 would reduce the franchise tax burden on the smallest of businesses; bring the kind of relief that will help them keep their doors open during these tough economic times.
