Court Hears Challenge to State Business Tax
A successful challenge to the state's primary business tax would throw lawmakers into special session to try to find enough money to pay for public schools, a lawyer for the state told the Texas Supreme Court today.
Allcat Claims Service and John Weakly are suing the state over the franchise tax, saying it violates a constitutional ban on personal income taxes in Texas because it taxes the business income of business partners as well as corporations.
The state's argument is that the tax doesn't tax the partners themselves — individuals who are protected from state income taxes — but ...
Comments (5)
Rick Scott McGuckin via Texas Tribune on Facebook
when will we put our priorities in order? How can we compete when globalization has offshored the low-paying jobs, and no effort to educate people for STEM jobs- only if they take on crushing debt?
Fernando Perez via Texas Tribune on Facebook
Excuses, excuses !
Dale H Curry via Texas Tribune on Facebook
Another failed Perry initiative loudly touted as part of "The Texas Miracle" or "No Fry Cook Left Behind"
Another stunning Perry initiative. Loudly touted as part of the "Texas Miracle".
jpt51
End the current charade that Texas has equitable method to finance state government. We need a source that ensures all Texans pay their fair share to support this great state. It’s time to force the Ledge and Gov Perry to end the many loopholes that allow the wealthy to avoid their responsibility.
dormand long
The Texas Franchise Tax is dysfunctional by any measure.
The tax is administratively unwieldy, and fails to be usable on the business software that most small businesses use to manage their financial affairs, the ubiquitous Quick Books.
The categorization of business type, as opposed to following the federal and very commonly used classification format, is a capricious and abitrary clumping together of business types which defies logic.
A primary failure of the Texas Franchise Tax is that it fails to raise sufficient revenues to replace those taxes which were lowered when this alabatross was implemented.
If Texas seeks to be a haven for small, innovative businesses, it should do a national search to find the best practice process for sustainable, fair and intuitive taxing of businesses, then emulate it for Texas and eliminate the collosal failure: The Texas Franchise Tax.