AUSTIN, Texas (AP) _ Texas’s businesses think the state’s tax system is mediocre and best and disastrous at worse.
Business owners and lobbyists on Tuesday shared their views with the House Ways and Means Committee on how to improve the way the state taxes businesses.
The Texas margins tax, also known as the franchise tax, levies a tax based on company’s revenue, after some exclusions. Big capital-intensive businesses say the current tax is barely acceptable, while service industries complain the system is unfair to them.
Since the Texas Constitution bans income taxes, that means some companies that lose money have to pay taxes anyway.
Democratic lawmakers complain that because the business tax consistently underperforms. Republicans have promised to improve the system. The Legislature meets again in January, when they will likely amend the tax.
(Copyright 2012 by The Associated Press. All Rights Reserved.)