KEY VOTE ALERT SB 1, SJR 1, SB 7 and SB 8
Americans for Prosperity-Texas will key vote
SB 1, SJR 1, SB 7 and SB 8 Tax Cut bills
Americans for Prosperity-Texas supports SB 1, SJR 1, SB 7 and SB 8 – legislation which provides substantial tax cuts for Texas taxpayers.
SB 1 and SJR 1 provide the largest of the Senate Finance Committee tax cut measures and would spend about $2.4 billion to increase the homestead exemption for school property taxes (the largest property tax for most property taxpayers) from $15,000 to 25% of the state median home value. The homestead exemption in SB 1 is a direct tax cut for individual homeowners.
SB 7 would cut the rate of the margins tax, also known as the business franchise tax, by 15 percent, which would translate into a savings of $1.4 billion to small businesses over the next two years, according to state estimates.
SB 8 is the Small Business Relief Act. It increases the franchise tax exemption from $1 million to $4 million. Small businesses make up 96% of the state’s employer base. The franchise tax is complicated, taxes a company even if they don’t make a profit and costs businesses valuable financial and human resources just to file the paperwork to prove they don’t owe the tax.
While we at AFP-Texas are on record with our position that Texas should work to repeal the franchise tax, we will support amendments that reduce the franchise tax and/or provide a pathway to elimination.
Texas has been a beacon for job creation and capital investment. And while our performance has been good, we are competing with other states. Some states including Michigan, Kentucky, New Jersey, and Indiana have repealed their franchise tax. Others are moving to do so.
Reducing the tax liability on Texans will grow our economy, jobs and bring more businesses to our Great State and opportunities for all Texans.
We at AFP-Texas encourage the Texas Senate to vote in favor of SB 1, SB 7 and SB 8 and will include these bills in our AFP-Texas Legislators’ Report Card to Texans.
Jerome Greener, State Director
Peggy Venable, Policy Director