The conservative makeup of the 83rd Texas Legislature seems to guarantee that there will be no new taxes or tax increases passed during the 2013 legislative session, but until now no one has suggested reducing taxes.
Three organizations are now talking about eliminating the much-maligned Margin Tax. Sen. Craig Estes (R-Wichita Falls) has actually filed a bill (the only bill he has filed to date) to repeal the Margin Tax effective Jan. 1, 2014. The National Federation of Independent Businesses, the Texas Public Policy Foundation (TPPF) and the Texas Conservative Coalition Research Institute (TCCRI) are all calling for repeal of the tax.
Quitting cold turkey on Jan, 1, 2014 might be too ambitious for some. TPPF calls for a phase-out of the tax by 2018, starting by raising the minimum revenue exemption immediately from $1 million to $10 million. RCCRI suggests a seven- to ten-year phase out. The Texas Association of Business calls it a good idea, but questions whether the state can afford the $5 billion or more revenue loss.
For a more thorough discussion of the possibility, read the Austin American-Statesman’s article Eliminating business tax on the agenda?