AUSTIN, Texas – Governor Rick Perry today announced his tax proposal as lawmakers convene on the first day of the special session. The president of the Texas Public Policy Foundation, Brooke Rollins, offered the following statement.
“The governor’s plan recognizes that we cannot stifle economic growth by applying burdensome new taxes, but we still need to abolish the franchise tax altogether,” said Rollins. “The governor’s plan neither creates a new class of taxes nor lends itself easily to increases in the future. His plan avoids harmful business activity and wage-based taxes. It’s a good economic middle ground for generating revenue without harming Texas.”
The Texas Public Policy Foundation has advocated a plan that would cut school M&O property taxes 25 cents by way of a half-cent increase in the sales tax and modestly broadening the base, while completely eliminating the franchise tax, and reducing general revenue spending by one-percent across the board.