FOR IMMEDIATE RELEASE 06/13/2013
Rep. Pat Fallon Calls for Additional Tax Relief
Asks Governor to Add Tax Relief to the Special Session
Austin, TX – In a letter to Governor Rick Perry, Representative Pat Fallon and 29 of his colleagues asked the Governor to add significant franchise tax rate relief to the ongoing special session of the Texas Legislature. The letter, coordinated by the Texas Conservative Coalition (TCC), the conservative caucus of the Texas Legislature, cites dynamic economic and fiscal modeling in calling for a 50 percent reduction in the rates of the franchise tax, which is levied on Texas businesses.
Fallon said, “In the regular session, we passed about $1 billion in tax relief. That was a strong start, but we can and should do more to allow businesses to invest, create jobs, and continue growing the Texas economy.”
For context, the tax relief passed by the Legislature in the regular session amounts to approximately 1.27 percent of General Revenue, or 0.6 percent of the entire budget. The revenue surplus at the start of the 83rd Legislature totaled approximately $8.8 billion.
Representative Fallon continued, “A 50 percent franchise tax rate reduction is an important step to counteract some of the looming federal tax increases. Right now, Texas is an economic leader, and we’re working to keep it that way.”
In a study for the Texas Conservative Coalition Research Institute (TCCRI), the Beacon Hill Institute at Suffolk University (BHI) estimated that, by 2017, a 50 percent rate reduction would lead to 16,200 new jobs, $1.9 billion in new investment, and $4 billion in real disposable income. According to the BHI/TCCRI data, reducing franchise tax rates by half would lead to a dynamic revenue loss to the state of only $1.3 billion in 2013, and falling to just $940 million by 2017 as revenue growth from the state’s other taxes begins to take up the slack.
State Representative Pat Fallon represents the newly formed Texas House District 106 in Denton County. He is a graduate of the University of Notre Dame and served as an officer in the United States Air Force. In 2009, he was elected to serve on the Frisco City Council, and in 2012 he was unanimously chosen by his fellow councilmen as the Frisco Mayor Pro Tem. Pat Fallon is the owner and CEO of Virtus Apparel and its companion companies, employing nearly 100 Americans. He lives in Frisco with his wife Susan and two sons. He and his family are members of Holy Cross Catholic Church in The Colony.
Contact: Caity Post