FOR IMMEDIATE RELEASE 04/14/2015
$4.87 Billion Tax Cut Plan
AUSTIN- Representative Dennis Bonnen (Angleton) today unveiled a sweeping tax relief plan that will provide nearly $ 5 billion in permanent tax relief for every individual and business in Texas.
"This is the biggest, broadest and boldest tax relief plan of the legislative session," said Bonnen. "It provides lasting tax relief to every family and business, and it is fiscally responsible because it abides by the spending cap."
The tax relief plan would be permanent and would not be eroded by local tax hikes or rising appraisals. House Bill 31 offers the first state sales tax cut in Texas history, reducing the rate from 6.25% to 5.95%. The average family of four will save $172 dollars per year and employers which currently pay 40% of all sales taxes collected in Texas will realize a significant savings as well.
"As one of the Co-Authors of Chairman Bonnen's bill, I am very supportive of Chairman Bonnen's efforts to meet the desires to begin limiting government's role and offering tax deductions to the people of Texas and House
District 2," said Dan Flynn
House Bill 32 cuts the franchise tax rate by 25% across-the-board for all businesses. Retailers and wholesalers will pay 0.375%, and all other businesses will pay 0.75%. The bill retains current exemptions that allow 900,000 small businesses to pay no franchise tax. Bonnen noted that while the state controls both the franchise and sales tax, it does not control property taxes.