Businesses in Texas shoulder a much bigger share of the state-local tax burden than do businesses in other states, according to a new report from the Texas Comptroller.
As a percentage of all state and local business taxes-including the property tax, the sales tax, and the margin tax-Texas businesses paid 64.8 percent of the total load in fiscal 2011, a relatively high mark compared to other large states and the national average (47.9 percent). What’s more, Texas businesses have seen their share of the tax load increase in recent years, up 4.5 percent since fiscal 2007.
If steps are not taken to reverse this trend, Texas risks putting its business sector at a further competitive disadvantage nationally and internationally, as well as potentially driving up the cost of goods and services here because, after all, businesses don’t pay taxes, people do. That’s why it’s critical that the legislature make it a priority this session to lighten the load on Texas businesses by eliminating the margin tax, a reform that the Tax Foundation has already said will improve the state’s business competitiveness immensely.