A new proposal from the Texas Tax Reform Commission is being discussed around the Capitol.
To read a summary of this new proposal, click here.
It’s important to note that under the proposal as currently drafted, the so-called margin tax would apply to all business entities, including accounting firms and services.
There is indication that some professional organizations are already expressing opposition to the $300,000 threshold on compensation deductions – the preference is that figure be higher.
Now here’s what we’re hearing from the rumor mill: the margin tax proposal has opposition from within the Tax Reform Commission, specifically from members who would seek to
- raise all sales tax to a flat 10%
- broaden the sales tax base to include services – including accounting/professional services
- eliminate the franchise tax completely.
What are your thoughts?
Do you support the $300,000 threshold for compensation deduction? If you don’t, would you support raising that threshold amount?
And what about raising the sales tax rate to 10% and adding services – including accounting services – to the tax base in exchange for elimination of the franchise tax?
To participate in a TSCPA member survey about the proposal, click here.