Gov. Perry Calls for $1.6 Billion Business Tax Cut
On tax day, Gov. Rick Perry called for tax cuts for businesses amounting to $1.6 billion over the biennium.
Perry called for $1 million tax deduction for business earning under $20 million annually. He also called for a five percent cut on the franchise tax, which all corporations chartered in Texas pay.
Additional tax cuts would go to businesses who cut down on paperwork by filing the federal EZ filing. And, any business that moves to Texas can deduct moving costs under Perry's proposal.
"This is about making Texas be more competitive," Perry said. "States that compete with us, our neighbors, they're not sitting on their laurels, they're looking at ways to be more competitive."
The tax cuts would cost Texas $1.6 billion over the next two years, but would apply to more than 100,000 businesses in Texas. Perry did not say how the tax cuts would be paid for, though his chief of staff said the governor's office preferred the general-purpose state revenue could cover any holes the tax cuts leave.