Texas Legislators and Associations are working together to make cut the first budget priority.
AUSTIN On the second annual deadline for Texas businesses to file their franchise tax payments Senator Dan Patrick (R-Houston) and Representative Rene Oliveira (D-Brownsville) have joined together to encourage the legislature to pass House Bill 4765.
House Bill 4765 by Representative Oliveira increases the small business tax exemption from businesses making less than $300000 to those making less than $1 million for the years 2010 and 2011. The effect of this bill is to remove the franchise tax burden on approximately 40000 businesses that paid franchise tax in 2008.
As the 81st Legislative Session slowly begins to wind down and the budget nears completion legislators and associations are pushing for the business tax cut to be the top budget priority.
Today businesses across the state are writing their franchise tax payment checks and once again putting off the bonuses capitol purchases and growth that make the Texas economy strong said Senator Patrick. House Bill 4765 must pass to help Texas businesses recover from this recession.
In these toughest of times it is wise to help the small business sector our states leading creator of jobs said Representative Oliveira. We can help them get back on their feet through this temporary tax relief until the economy is projected to rebound.
Four out of five small business owners saw their business tax double or more last year. Chances are its even harder to write that check this year" said Will Newton NFIB/Texas executive director. Just as it is their duty to balance the budget and keep spending in check it is our lawmakers duty to provide relief from a tax that is now well regarded as unfair and harmful to the small business community and our states economy."
House Bill 4765 will be carried by Senator Dan Patrick in the Texas Senate and should be heard in Finance Committee next week. Senator Patrick carried a similar bill Senate Bill 19 that sought to enact the $1 million exemption along with lowering the EZ tax rate.
