Gov. Perry Moves to Make Texas More Tax Friendly
Americans for Tax Reform sent a letter to Texas legislators today, urging them to support the $1.6 billion tax cut for Texas employers proposed by Gov. Rick Perry yesterday. The proposal outlined by Perry would provide relief to over 100,000 Lone Star State businesses.
Perry’s proposal, if adopted by the legislature, would ensure that Texas remains the economic envy of the nation. Gov. Perry’s plan calls for lowering the franchise tax rate by 5%, making moving expenses deductible for companies that relocate their business to Texas, and expanding the $1 million business tax deduction to companies with gross receipts up to $20 million. In his letter to Texas legislators, ATR president Grover Norquist stated the following:
“While Texas has outperformed others state economically due to its low-tax, pro-growth, free-enterprise approach to governance, other states are moving to catch up in Texas and more must be done this session to ensure that Texas remains the most conducive state for job creation and the most attractive location for companies seeking to escape high tax states. The tax reform proposed by Gov. Perry yesterday would ensure that Texas remains the economic envy of the nation for years to come. “
If Perry’s proposal or the margin tax elimination bills introduced by Sens. Paxton, Patrick, and Estes were to be passed into law before the legislature adjourns next month, Texas would significantly increase the comparative economic advantage it has over other states.
Meanwhile, in neighboring Louisiana, Gov. Bobby Jindal has put forth a pro-growth plan to eliminate the state’s income tax in order to make the state more economically competitive with other states and especially the neighboring state on its western border. There are currently ten bills pending in the Louisiana legislature that would repeal the personal or corporate income tax. Unfortunately, it looks as though the effort to repeal the Louisiana income tax has been sidelined by short-sighted legislators in the Louisiana House.
Louisiana legislators who want to table income tax relief are causing their state to be left behind. Texas already has a significant advantage over the Pelican State due to its lack of a personal and corporate income tax. If Texas legislators are successful in reducing the state’s franchise tax and lawmakers in Baton Rouge continue to twiddle their thumbs, the Lone Star State will only extend its advantage over Louisiana.
Gov. Perry is putting up billboards in Illinois to encourage companies there to consider moving to Texas. If Louisiana lawmakers continue to sit back while other states make their tax climates more hospitable, Perry might want to consider putting up some billboards along the stretch of I-10 running through Louisiana. ATR will continue to follow both issues closely, and will be educating taxpayers in Texas and Louisiana as to how their representatives in Austin and Baton Rouge vote on the important tax relief plans put forth by Govs. Perry & Jindal.
For a copy of the letter that ATR sent to TX legislators today, click here.