From Bob Owen CPA, of the Texas Society of CPAs:
- Many taxpayers have complained about the tax to their legislators.
- Some of those legislators have contacted TSCPA to ask: “Can we save the margin tax?”
- Some legislators have not received any complaints.
- The National Federation of Independent Business wants substantial revisions to the tax to help small businesses.
- The Business Tax Advisory Committee has issued its first report which says, among other things, that small businesses experienced a drop in taxes. Click here to learn more about the BTAC and its first report.
- The margin tax calculations have proven to be complex. To see the results of a TSCPA survey on cost and complexity, click here.
- The margin tax collected about $1.6 billion less than anticipated.
- Big businesses are not complaining about the margin tax (see previous item).
- Rumors persist that some want to raise the margin tax rate, but I can’t find anyone willing to admit it.
- Almost all suggested changes to the margin tax (except for the above rumors) would further reduce state revenue.
- The state doesn’t have enough projected revenue to meet projected budget needs.
- A group of conservative legislators are interested in repealing the tax and replacing it with an alternative business tax.