Texas House OKs bill to eliminate franchise tax

[TexasTowelie]

A plan to eliminate the state’s main business tax won initial approval from the Texas House late Thursday, despite arguments from opponents that the move is short-sighted at a time when lawmakers already are struggling to bridge a multibillion-dollar funding gap with deep budget cuts.

The House voted 98-45 to approve House Bill 28, which would phase out the state franchise tax, also called the margins tax, that brings in an estimated $8 billion to state coffers each two-year budget cycle.

The bill, sponsored by state Rep. Dennis Bonnen, R-Angleton, still must be approved on a final procedural vote, but it is expected to be sent to the Senate.

The bill “puts the franchise tax on the correct path, and that is the path of going away,” Bonnen said. “This is the appropriate thing to do to eliminate this bad tax, that was created largely to do property tax relief” that hasn’t been fully realized.

Read more: http://www.statesman.com/business/texas-house-oks-bill-eliminate-franchise-tax/BVZ5ei4EO2xAT9izEU7laO/

[PoindexterOglethorpe]

1. Ahhh, Texas. A state which prides itself (among other things)

on having no income tax. Which means most of its taxes are highly regressive. Some years back on a visit to that great state, I was astonished at the cost of gasoline. A lot higher in my home state, which had a state income tax. Gosh, might there be a connection?

[Gothmog]

2. It is actually called the margin tax and this is really stupid move by the Texas legislature