Texas' Budget Issues Threaten Small Business Tax Break
Written by Ken Gaebler
Budget problems in the Lone Star State are threatening a small business tax break.
Legislators in Texas say the state's $18-billion projected budget shortfall over the next two years is threatening a current small business tax break.
"It's going to be very hard to maintain it," said House Ways and Means Committee Chairman Rene Oliveira. "We have a lot of problems ahead."
Last year, the state legislature exempted businesses with less than $1 million in revenues from the state's business tax for two years. Unless lawmakers act, that threshold will drop to $600,000 next year - meaning that approximately 25,000 companies would see a net tax increase - bad news for small business owners.
The Houston Chronicle says that the initial tax break last year was paid for in part by a hike in taxes on smokeless tobacco products.
The issue could have a significant role in the upcoming elections. Governor Rick Perry - who faces reelection this November - has supported making the tax break permanent despite the state's budget issues. His challenger - Democrat Bill White - has not spoken about his position on this specific tax break.
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