They Call This News?Sharp: Business tax should encourage hiring, manufacturing in Texas:
A new state business tax could offer deductions for hiring and manufacturing in Texas, the head of a panel studying the state's tax structure said Tuesday.Panel weighs 1% business tax:
Texas Tax Reform Commission Chairman John Sharp said the 24-member committee appointed by Gov. Rick Perry might recommend a new franchise tax levied on gross receipts or some other measure of business activity instead of net income, which the tax now covers.
The governor's tax-reform commission is considering a new state business tax of around 1 percent on the gross income or gross receipts of all corporations and partnerships on their business in Texas, the panel's chairman said Tuesday.This is all Mr. Sharp has been talking about since he was knighted to head a corporate/business run commission on how to "reform" our tax system in this state. I don't know why they are going to waste more time and taxpayer money by continuing the "go-thorough-the-motions" meetings when they've already made up their mind. Mr. Sharp and his crony commission will surely put forward this weak attempt at changing the system that will hopefully give his friend Gov. Perry a plan that will get him reelected or at least a scapegoat.
[UPDATE] OffTheKuff has much more, TTRC considers new business tax proposal, which includes a clarifications from Mr. Sharp:
Just as a quick point of clarification, there have been several references to the third option of taxes that I and my commission are considering as a gross receipts tax. That particular option can no more be called a gross receipts tax than a sales tax can be called an income tax. Although they use a similar basis, a gross receipts tax to business connotes a tax on the entire gross receipts of a company. That is far from the case with this option. It is accurate at this stage to say it is an option under consideration. It is also accurate to say it is a revision of the state's franchise tax and some people have referred to it as a tax dealing with margins, but it is not and never will be a gross receipts tax. Thank you for your time.Gross, huh?
More on taxes soon.