Perry calls for $1.6 billion in business tax cuts

[TexasTowelie]

Gov. Rick Perry on Monday called for $1.6 billion in tax relief for small businesses, allowing companies with less than $20 million in gross receipts to exempt their first $1 million.

His proposal is a major expansion of the existing small business exemption for the state’s primary business tax, commonly called the margins tax.

The law now exempts a firm with $1 million or less in gross receipts from paying the tax. An estimated 40,000 companies take advantage of the current tax break.

The governor’s proposal also includes some minor cuts in the tax rate for some business taxpayers and a deduction for companies relocating to Texas.

More at http://www.statesman.com/news/business/perry-calls-for-16-billion-in-business-tax-cuts/nXMmk/ .

[Ilsa]

1. I can see a benefit to a graduated tax structure,

But the lost revenue needs to be made up by larger, more profitable companies.