AUSTIN, Texas – With the early morning passage of CSHB3, the Texas Senate set the right direction for conference committee negotiations with the state house, according to the Texas Public Policy Foundation’s chief economist.
“Taken on the whole, the Senate’s tax bill represents a good policy direction for the state. It’s not perfect, but it represents a big win for everyone who cares about economic growth, tax transparency and good government,” said Byron Schlomach, Ph.D. “Consistent economic analysis demonstrates that when you create an attractive environment for business investment, job growth occurs rapidly benefiting everyone, and particularly people at the lower income brackets and the entry-level positions.”
Like the House, Schlomach said the Senate was wise to reject a proposal that would impose a tax based on employee wages.
“That is a well-known job killer that greatly distorts the market, and like all the other so-called business taxes obfuscates the real cost of government to the people.”
Schlomach praised Lt. Gov. Dewhurst and Senate Finance Committee chairman Steve Ogden for bringing the measure to the floor for debate.
“It was encouraging to hear senators Brimer and Janek clearly articulate economically prudent tax policy as they offered their comprehensive amendment,” added Schlomach.
One facet of the amendment places a “sunset” on the current business franchise tax, forcing the state to consider the best way to replace that revenue in the near future.
“This sets the stage for rational, sound discussions on long-term economic policy for Texas.”
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