AUSTIN – Texas Public Policy Foundation’s Center for Fiscal Policy Economist Dr. Vance Ginn testified today before the Texas House Ways & Means Committee on Senate Bill 7, relating to decreasing the rates of the franchise tax.
“Given the substantial compliance costs and devastating nature of the business franchise tax, the Foundation’s research finds that Texans could have $2,400 more for families of four and 130,000 more private sector jobs available statewide within five years after elimination,” said Ginn. “Senate Bill 7 would provide a step toward these economic gains from full repeal by buying down this costly tax by 15 percent and reducing the compliance cost by raising the EZ filing revenue level to $20 million at a lower rate of 0.331 percent. If the Legislature can’t agree on which taxes to cut, property or sales, the biggest economic boost would derive from putting the almost $5 billion being discussed toward eliminating the franchise tax in the second year of the biennium.”
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.
The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin, Texas.