David Guenthner From The Texas Public Policy Foundation Says Margin Tax Has Got To Go [AUDIO]
On the Tuesday edition of The Chad Hasty Show, David Guenthner from the Texas Public Policy Foundation talked with Chad Hasty about the latest coming out of the state legislature.
This week is the final week for the legislature to file bills, and many of these bills are starting to come out of committees and onto the floor. Guenthner said one bill he'll be keeping an eye on will be the budget. He said that although the budget looks good right now, education and health care funding are sure to be flashpoint issues for both the Senate and the House.
Guenthner said another matter of concern for the Texas Public Policy Foundation is the margin tax, and he is encouraging people to write in to their representatives in the legislature to abolish this tax. Guenthner explained what exactly the margin tax was, wand why it was so detrimental to business in Texas.
"What happened was they created this experimental margin tax where there's three different formulas for what a business might owe. And you have to pretty much run all three different scenarios in order to figure out how much of the tax you owe. Beyond that, what companies are finding is that because, among other things, the cost of goods calculations and the definitions are different in state law as opposed to federal law. Accounts have to keep two different sets of books, so that you've got one set of books that is for your federal tax obligations, and then a separate set of books for the Texas tax.
Guenthner went on to say that this tax hurts the "business-friendly" image Texas has, and that the economy in Texas is doing so well now that there's no need for such a "failure" of a tax.
Throughout the legislative session, you can listen to David Guenthner Tuesdays at 9:05 during The Chad Hasty Show on NewsTalk 790 KFYO. For more information of the Texas Public policy Foundation, visit their website at texaspolicy.com.