Issue Overview: Legislators are attempting to reduce property tax rates through the creation of new taxes on business to fund the state's education system. Proposals are as varied as payroll taxes, value-added taxes, business activity taxes or a reformed franchise tax.
NFIB Position: NFIB opposes any attempt to burden small business with increased taxation and regulation. Small business accounts for 98 percent of all business in this state, and it is the backbone of our economy. Our state's economic recovery is being buoyed by small business, and a new business income tax or tax on employment will cause irreparable harm to job creation, business growth and future tax receipts. Texas lawmakers seeking to reduce property taxes should look to consumption-based taxes rather than business-based taxes. Texas is already one of the 10 worst states for business taxation, and lawmakers should seek to improve our climate rather than worsen it.
As state legislators work to revamp our state's tax structure, they should be wary of saddling more of the tax burden on small business. We must have a system of taxation that takes into account the diversity of business we enjoy today without stifling growth, opportunity and harming the state's economy. Simply put, small business is the backbone of this state and nation's economy. Any additional burden placed on the "mom and pop" operations could have dire consequences on job creation and the future of small business.
What to Do: Call and write your representatives and senators and tell them to seek accountability and efficiency in current government services and hold the line on new or increased taxes to businesses. Tell them we must have a system of taxation that takes into account the diversity of business we enjoy today without stifling growth, opportunity and harming the state's economy. Remind them that small business is the backbone of this state and nation's economy. Any additional burden placed on the "mom and pop" operations could have dire consequences on job creation and the future of small business.
