AUSTIN – The Conservative Texas Budget Coalition and its fifteen members issued the following statements on the Texas Legislature’s final version of the $3.8 billion tax relief package. The package will cut the business franchise tax $2.6 billion by permanently reducing the rates 25 percent and increasing the ceiling to $20 million to file the EZ form. It also includes $1.2 billion in property tax relief by raising the homestead exemption $10,000. Finally, it would require a super majority vote of 60 percent by a governing body to raise property taxes above the effective tax rate, which is the rate that would produce the same tax revenue if applied to the same properties taxed in consecutive years.
“We applaud the Legislature for developing the historic $3.8 billion tax relief package that benefits homeowners, businesses, and all Texans,” said Texas Public Policy Foundation Center for Fiscal Policy Director Talmadge Heflin. “We are pleased that the largest portion of the package follows our research showing that cutting the onerous business franchise tax most benefits Texas from more prosperity and jobs. The package also includes much needed relief for homeowners who face the 14th most punitive property tax nationwide. Combining this with a requirement that governing bodies statewide must have a 60 percent vote to raise property taxes above the effective rate, homeowners will benefit from lowering the mounting burden of property taxes. Holding spending in check while providing these large tax cuts looks to make Texans the winner this session.”
“We look forward to continued efforts toward lasting property tax reductions and total repeal of the franchise tax,” said Grassroots America Executive Director and Chair of the TX Legislature's TEA Party Caucus Advisory Committee JoAnn Fleming. “This was a significant first step.”
“Texas is already a low tax state, but I'm delighted that the Texas Legislature is living up to its commitment to further reduce the state's take from the growing Texas economy,” said Institute for Policy Innovation President Tom Giovanetti. “It's crucial that Texas policy makers continue to invest in growth by keeping taxes low and regulations minimal. Having done so, we have every reason to expect that the economic future will continue to be bright in Texas."
"Texas is poised to take a big bite out of the business franchise tax,” said R Street Institute Texas Director Josiah Neeley. “Hopefully this will whet the Legislature’s appetite to come back next time and finish the meal."
"Texas families will benefit from each reform that reduces the scope and size of government,” said Texas Eagle Forum President Cathie Adams. “We elect conservatives do just that; NOT to just talk conservatively."
“The reforms made to the state’s business franchise tax and the homestead exemption are nothing short of a win for conservative activists around the Lone Star State who have kept up the fight for tax relief this session,” said Empower Texans President Michael Quinn Sullivan. “However, the deal is not done and Texans must stay vigilant."
The Conservative Texas Budget Coalition members include:
Americans for Prosperity – Texas
Americans for Tax Reform
Grassroots America – We The People
Heritage Alliance
Institute for Policy Innovation
National Federation of Independent Business – Texas
National Taxpayers Union
Our America Initiative
R Street Institute
State Budget Solutions
Tea Party Caucus Legislative Advisory Committee
Texas Eagle Forum
Texans for Fiscal Responsibility
Texas Public Policy Foundation
Young Conservatives of Texas
The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin, Texas.