CBS 7 - Your Eye on West Texas

UPDATE 11:10AM Texas Business Group Offers Tax Cut Suggestions 1/16/13

UPDATE: 11:10AM

Austin - A top state business organization has presented a proposal on how it wants to see Texas cut taxes.

An improving economy has sparked a sunnier budget outlook. Gov. Rick Perry has urged the state Legislature to lower taxes while holding down government spending.

The Texas Association of Business offered Wednesday its suggestions for "tax relief."

It would like to make permanent a temporary exemption from the state business tax for firms making less than $1 million.

The group also wants lawmakers to let businesses exempt from taxation their first $1 million in gross receipts and decrease the quarterly franchise tax rate by a quarter percent.

Its plan would also create a research and development tax credit and exempt the purchase of things like college textbooks and computers from sales tax.

AP-WF-01-16-13 1704GMT

CBS7 News
January 16, 2013

Austin - The proposed state budget is suggesting it may become harder for some people to start up private companies in the Lone Star State.

According to the Associated Press, budget proposals in Austin include no money for Governor Rick Perry's signature business incentive programs, the Emerging Technology Fund and the Texas Enterprise Fund.

Nor is there money earmarked for the beleaguered Cancer Prevention and Research Institute of Texas, which has given about $96 million since 2010 to private startups, in addition to hundreds of millions more for research.

Lawmakers also froze out the tech and enterprise funds in the 2011 session, but did let the programs carry over unused money.

Lt. Gov. David Dewhurst on Tuesday downplayed the significance of both the House and Senate beginning budget talks this time with no new dollars in the pipeline again.

"I think there's an appetite among our Texas lawmakers to continue to provide the adequate business incentives so that companies continue to locate here and that new technology is delivered," Dewhurst said. "I understand there has been criticism of different programs - some of which I think is unwarranted, and some of which I think could use some more transparency."

The Texas Legislature is taking a week off, just a week after opening for business.

Both the House and the Senate stand adjourned until January 23.

Both chambers are taking the extended break to accommodate lawmakers attending President Barack Obama's inauguration in Washington.