NFIB Texas appears on ‘Let People Prosper Show’ podcast, highlights push for regulatory consistency, cut to the inventory tax
AUSTIN (April 4, 2023) – In an interview with Vance Ginn, Ph.D. on the ‘Let People Prosper Show’ podcast, NFIB State Director Annie Spilman outlined why job creators support the Texas Regulatory Consistency Act (SB 814 / HB 2127), legislation that would ensure small businesses only have one set of rules to follow statewide. CLICK HERE to listen to the full interview. Excerpts of the conversation are below.
Texas cities will retain their governing powers over their communities:
“This bill would restore the regulatory powers that have always traditionally been encompassed within the state and federal government, back to the state and federal government,” Spilman said. “Texas cities will still keep their local control powers over zoning, public safety, public health, overgrown lots, door-to-door sales, water restrictions, you name it. This bill will not strip cities of any of their governing powers over their communities.”
READ: Fact Check: Local Control Is Alive and Well in Texas
The trend of Texas cities stepping out of their jurisdiction and attempting to regulate private employment practices puts small businesses at risk:
“Cities are passing ordinances with no stakeholder input, in a matter of a week, if that,” Spilman said. “They have not thought through them. They have not thought through the cost to the business owners or the implications for business owners doing business across county lines.”
Regulatory consistency is crucial for employers, their employees, and the economic vitality of Texas:
“[The Texas Regulatory Consistency Act] creates some sort of consistency in a world of uncertainty,” Spilman said, “When we poll our members, they cite uncertainty over government action, uncertainty over government regulations, and uncertainty over economic conditions as their top five biggest problems and priorities. What happens when a business owner, especially a small business owner, is uncertain about anything? They cannot invest back into their business. They cannot invest back into their employees in the forms of benefits and bonuses and wage increases. They can’t hire more people. They’re completely hamstrung by the uncertainty of what’s going to happen next.”
The inventory tax is a form of “double taxation” that disproportionately hurts small businesses:
“The inventory tax is super burdensome in Texas. It’s very regressive,” Spilman said. “We’re really pushing for inventory tax relief this legislative session. […] When you drive around some of these mid-sized towns and urban cities, you see these mom-and-pop shops with their doors shut and they’ve been emptied out. And the absolute number one reason that they were forced out is they could not afford their property taxes. That is unacceptable.”
CLICK HERE to listen to the full interview.
Background:
Today, Tuesday, April 4, NFIB is testifying before the Senate Business & Commerce committee in support of SB 814 / HB 2127. Last month, the House State Affairs Committee considered HB 2127. CLICK HERE and HERE for our member testimony before the House State Affairs Committee.
NFIB supports SB 5, introduced by Sen. Tan Parker (R-Flower Mound), which would increase the inventory tax exemption and offer a credit toward the franchise tax. To learn more about NFIB’s ‘Cut the Inventory Tax,’ visit NFIB.com/TexasTaxCut.
