Texas Politics

Blogging politics, elections and the Capitol with the Austin bureau

Businesses’ tax relief idea: We’ll take it


The Texas Association of Business has an idea for how best to deliver tax relief called for by Gov. Rick Perry: Give it to businesses.

The group announced an on-line petition drive to encourage the passage of $1.8 billion in tax relief targeted at Texas small business.

Its proposal would make permanent the current $1 million exemption from the state business tax, which allows small businesses to avoid the levy entirely. It also would allow businesses to deduct their first $1 million in taxable income.

That means if a business is paying taxes on $2 million annually now, their tax bill would be cut in half, pointed out Bill Hammond, president and CEO of the group.

Hammond said the plan would provide stimulus for businesses whose taxes are cut and “rev up the job creation engine in this state.”

Peggy Fikac