Nothing could be more discouraging to the business community of Texas
By State Senator Dan Patrick
Texas Insider Report: AUSTIN Texas During the last legislative session I passed a bill that exempted businesses grossing under $1 million from paying the states gross receipts tax.
Although it was a historic tax cut that helped about 40000 businesses weather the economic storm I only had enough votes to pass a two year exemption.
Unfortunately our economy is not out of the woods and the small businesses of Texas are doing their best to survive.
As Texas continues to lead the nation out of our economic slump the worst thing we can do is raise taxes on small businesses. I have proposed
Senate Bill 125 to retain this exemption and allow the small businesses of Texas to help us grow out of our recession.
When the exemption was enacted last session it was fully funded through a dedicated revenue stream that continues today. Sadly some members of the legislature feel like new funds must be identified to allow this exemption to continue.
Requiring small business proponents to find new revenue to cover this exemption ignores the economic realities that we face today.
The small business franchise tax exemption has spared approximately 40000 small businesses from either closing their doors or laying off workers. Failing to renew this exemption amounts to turning
our back on the entrepreneurs that have led us through the economic malaise.
Nothing could be more discouraging to the business community of Texas than raising taxes at a time when we need them most.
The State of Texas must pass a permanent business tax exemption for small businesses in order to continue our path to prosperity. I hope you will join me in support of
Senate Bill 125 or any of the bills that make this exemption permanent.
Texas State Senator Patrick is Vice Chair of the Education and Higher Education committees. He also serves on the Health & Human Services Criminal Justice and two other committees.
