There’s been a lot of talk about tax cuts around the Capitol. Which taxes should be cut will be hotly debated, but at the end of the day, it’s pretty likely that there will be some major cuts considered and probably passed.
On the Senate side, Lt. Governor Patrick unveiled a proposal that would cut taxes by about $4.5 billion through changes to residential property taxes and by limiting the number of businesses required to pay the franchise tax. Regarding the latter, by early calculations, it would mean that only 55,000 of Texas’ one million businesses would have to pay. As a quick reminder, this tax is used to generate some much needed revenue to help pay for public education.
In response to Patrick’s plan, major players in our state’s business community, including the Texas Association of Business and the Texas Association of Manufacturers, sent a letter listing several concerns. Included in the letter was a well-penned reminder that before we talk about cuts, we must address the needs of our state. Here’s what they said:
“For once in a generation, you have an opportunity to make progress on the issues that confront our state – congested roads, educational challenges, obsolete infrastructure, high debt and underfunded pensions to name a few. To continue our economic success and job creating machine, we need to address those challenges and protect our business climate. If there is money left over, it is appropriate to consider tax relief.”
I couldn’t agree more.