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Franchise Tax Cuts Could Endanger Federal Economic Recovery Aid

  

Author:
Dick Lavine /(512) 320-0222 x 101

May 4, 2009

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On Monday, May 4, the House will consider HB 4765 by Representative Rene Oliveira, which would reduce franchise tax revenue available to fund the 2010-11 budget by $172.1 million. Bills that reduce franchise tax revenue, which is dedicated to replacing school property tax revenue lost to the tax cuts enacted in the 2006 special session, could endanger the state's receipt of federal stimulus money that is intended to restore state support for education by signaling that the state does not need the federal aid for this purpose. In any event, now is not the time to cut business taxes. Texas needs to focus on protecting families.