Texas House Shifts Focus To Tax Breaks
The Texas House will begin slowly and selectively whittling down the state business tax this week, as Republicans work to make good on a promise to cut taxes.
In the coming week, the House will consider at least $410 million in credits and exemptions to the state franchise tax, one of the most maligned sources of state revenue.
Liberals hate the franchise tax because it consistently delivers $4 billion less per budget cycle than promised when it was created in 2006. Conservatives hate it because it demands taxes from businesses that lose money. Businesses hate it because it adds on to the sales and property taxes they are already paying.
Many Republicans want to do away with it completely, but that would leave a $5.6 billion hole in state revenue.
Copyright 2013 The Associated Press.