The following statement was released today, May 15, 2013 by NFIB/Texas Executive Director Will Newton.
Today small business owners across the state will remit their franchise tax. It is on their behalf that NFIB/Texas asks the Legislature to support meaningful and lasting reforms.
Small business accounts for more than 2/3 of all net new jobs created. Yet a February 2013 survey of NFIB/Texas members revealed more than half of those job creators (57%) have been forced to pay the state’s business tax in years when their business did not make a profit.
Our Legislature has the opportunity to lessen the impact of the tax on small businesses. Legislation is working its way through the process that will provide relief for some businesses – both large and small – but there is no legislation on the table that will provide meaningful and lasting tax relief to a majority of businesses in the state.
Governor Rick Perry has proposed a tax relief plan that would provide meaningful and lasting tax relief for small businesses. The plan includes several reforms but two specific reforms would bring meaningful and lasting tax relief to small businesses. Those reforms include allowing a $1 million deduction for all businesses under $20 million in gross receipts and an across the board 5% rate reduction.
Freeing small business owners from even a portion of the state’s burdensome franchise tax will allow their businesses to grow which, in turn, grows the Texas economy. Although Texas enjoys a better business climate than most states, the franchise tax is an impediment to being even stronger. The Governor’s proposals take us one step closer to reducing those barriers to business growth, increased employment, increased spending and increased revenue for the state.
The National Federation of Independent Business is the nation’s leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists sends their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information about NFIB is available online at www.NFIB.com/newsroom.