AUSTIN – Today, the Texas Public Policy Foundation’s Center for Fiscal Policy Director Talmadge Heflin and economist Dr. Vance Ginn issued the following statements on House Bill 28, which would use certain surplus state revenue to phase out the franchise tax until it is eliminated.
“We commend the efforts embodied in HB 28 to eliminate the onerous business franchise tax as quickly as possible,” said Mr. Heflin. “By killing this burdensome tax, Texas will increase its economic competitiveness so that Texans have more opportunities to flourish.”
“Eliminating the costly business margins tax would provide a boost to economic activity in the form of more personal income and job creation,” said Dr. Ginn. “HB 28 is a great example of returning surplus revenue to taxpayers instead of using it to increase government spending.”
The Foundation recently released the paper Unleashing Economic Growth: Eliminating Texas’ Business Margins Tax that highlights the research on the economic gains from eliminating this tax.
The Honorable Talmadge Heflin is Director of the Center for Fiscal Policy at the Texas Public Policy Foundation, a non-profit, free-market research institute based in Austin. In the 78th Session, Heflin served as chairman of the House Committee on Appropriations and navigated a $10 billion state budget shortfall through targeted spending cuts that allowed Texans to avoid a tax increase.
Vance Ginn, Ph.D., is an Economist in the Center for Fiscal Policy at the Texas Public Policy Foundation.
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