(AUSTIN) - Gov. Rick Perry announced a four-point plan to provide nearly $1.6 billion in tax relief to all Texas businesses currently subject to the state's franchise tax. The governor was joined by lawmakers, the Texas Association of Business (TAB), National Federation of Independent Business (NFIB) and Texas Conservative Coalition Research Institute for the announcement.
"By cutting taxes for Texas businesses, we are helping job creators in our communities and promoting economic growth across the state," Gov. Perry said. "Businesses that keep more of their money can pass savings on to consumers, hire more workers, offer greater employee benefits or reinvest it into their companies and grow their business - all of which are good for Texans and our growing economy."
Gov. Perry's plan would reduce business taxes by:
Reducing the franchise tax rates by 5%
Providing a $1 million deduction for businesses with revenue up to $20 million
Lowering the rate for EZ Form filers
Giving companies relocating to Texas from out of state a one-time deduction of moving expenses in the first year they pay the franchise tax
Gov. Perry's business tax relief plan would also have the effect of making permanent the current small business tax exemption. That exemption currently impacts 29,000 businesses and is set to expire in 2014.
"Business is the economic engine of our state and Gov. Perry's plan will only serve to fuel that engine," TAB President Bill Hammond said. "Government doesn't create prosperity, business does. By reducing the tax burden on Texas businesses, businesses will keep hiring more workers, reinvesting in their companies and driving the economic success of our state."
"Gov. Perry's tax relief proposals will go a long way in helping entrepreneurs and smaller businesses grow during this period of economic recovery," NFIB Texas Executive Director Will Newton said. "These four specific points demonstrate an understanding of the kind of relief small business owners have said they want. We applaud the governor's willingness to prioritize economic development and provide relief to our state's job creators."