AUSTIN – The Texas Public Policy Foundation today released the paper Unleashing Economic Growth by Eliminating Texas’ Business Margins Tax by the Center for Fiscal Policy’s economist Dr. Vance Ginn and research associate Malcolm Dang. The paper summarizes the economic research findings that Texas would benefit in terms of higher personal income and more job creation after eliminating the state’s business franchise tax, often called the margins tax.
“Research shows that Texas should eliminate the business margins tax or the Texas miracle will quickly fade,” said Dr. Ginn. “Simply put, businesses don’t pay taxes, people do—in the form of higher prices, lower wages, and fewer jobs available. Research results indicate that Texas forgoes billions of dollars in personal income and tens of thousands of jobs each year it fails to eliminate the margins tax. By eliminating this tax, Texas would gain in economic competitiveness by joining only South Dakota and Wyoming as states that do not impose a gross receipts tax nor a corporate income tax.Although there may be less revenue available in the 85th Texas Legislature, a path towards the ultimate goal of eliminating the margins tax should remain.”
To read the full report, visit: http://txpo.li/2jHbFS9
To schedule an interview with Dr. Ginn, please contact Caroline Espinosa at [email protected] or 512-472-2700.
Vance Ginn, Ph.D. is an Economist in the Center for Fiscal Policy at the Texas Public Policy Foundation, a non-profit, free-market research institute based in Austin.
The Texas Public Policy Foundation is a non-profit free-market research institute based in Austin.
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