No matter how you evaluate Texas’ business franchise tax, commonly called the “margins tax,” it fails the least-burdensome-tax test and fails to allow Texans the opportunity to flourish. This broad-based, gross-receipts-style margins tax is far more complex and unique among all taxes nationwide—with only Nevada having a similar gross-receipts-style tax. Eliminating this onerous tax would best serve Texans.
Recommendations
- Spur economic growth and create more jobs in Texas by eliminating the Texas business margins tax.