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500 will go far to improve Texas business tax climate and job creation, and it is Adidas Hat For Girls heartening to see it passed by the Legislature, Chuck DeVore, the vice president for policy at the conservative Texas Public Policy Foundation, said in a statement.

now as a retailer, for example.

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710 million tax break awaits Perry

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Dick Lavine, a senior fiscal analyst with the more liberal oriented Center for Public Policy Priorities think tank, said the money does less good for business than it would for government services that haven been brought back to pre recession levels.

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if there is enough money in the budget.

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Paying a 0.975 percent tax rate instead of a 1 percent tax rate may not have a notable affect on businesses, whereas putting the money in government so that it reaches a prekindergarten class would have a more notable effect, Lavine said.

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way the margins tax is set up now, a business could completely miss out on the exemption if they make just one dollar over that $1 million mark. Harvey Hilderbran, R Kerrville, said in a release.

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businesses and entrepreneurs shouldering almost two thirds of our state and local tax burden, what HB 500 accomplishes is nothing less than a direct boost to Texas jobs and prosperity. In making permanent the $1 million small business tax exemption, HB 500 frees up our smallest job creators to focus on growing their businesses instead of worrying about the Texas Tax Code. Will Newton, executive director for the Texas National Federation of Independent Business, said the bill makes few improvements and continues to convolute an already convoluted tax system.

The franchise tax was put in place in 2006, when lawmakers were trying to find ways to fund education. Increasing tobacco taxes and enacting the franchise tax on businesses were aimed at raising about $3 billion in new money for the state each year.

going to be good for some and not so good for most, Newton said of changes wrought by HB 500.

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Lawmakers have an exemption in place so that businesses with less than $1 million in total annual revenue are exempt from the tax. That exemption would decrease to those making under $600,000 if HB 500 does not become law.

500 would also make the $1 million exemption apply to businesses making more than $1 million.

type of taxation hits different industries in many different ways, making it difficult to tell the effect on businesses overall, Newton said.

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He did offer the example that an auto repair shop making $3 million could see taxes cut in about half, so that if they had $6,000 in tax liability before, they might now have around $2,500 to put back into the business.

His organization would rather phase out the franchise tax altogether, bringing an estimated 16,000 jobs, Newton said.

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HB 500, awaiting Gov. Rick Perry signature, would make permanent a $1 million deduction from Texas margins tax, giving a tax break ultimately worth more than $710 million.

One positively impacted industry includes auto repair shops, which would be able to take advantage of the tax exemption Jordan Cap Green

With the new exemption and a rate reduction for the next two years by 2.5 percent, possibly decreasing the rate reduction by 5 percent in the second year New Era Mexico Hat

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