margin tax

Eliminate Texas' 
margins tax

The Facts

  • Texas' margin tax is complex, costly, and difficult to comply with, giving rise to a less competitive state business climate.
  • The margin tax has consistently underperformed. Collections have fallen below expectation in most years since its inception, partially resulting from legal tax avoidance strategies, a common issue with complex tax schemes.
  • Texas does not have a revenue problem. From the 2004-05 to the 2016-17 budget cycle, the state's estimated total tax collections is 75 percent, much faster than the 55 percent growth rate of population plus inflation.

Recommendations

  • Eliminate the margin tax.

Increase investment and boost jobs by eliminating Texas' business tax.

For a more prosperous Texas, last session’s progress of cutting the margin tax by 25 percent should be continued by putting the margin tax on a path to elimination.
— Vance Ginn, Ph.D.
The 85th Texas Legislature has an opportune moment in the state’s history to solidify Texas as the leader in America — and the world — for her tax environment.
— The Honorable Talmadge Heflin