Yesterday the Texas Senate approved a bill that would gradually phase out taxes levied on businesses during future legislative sessions. Such as; the state has potentially shaken off the oil price slump and seen its economy begin booming again.
The bill was quickly approved and with very little debate. The bill now heads to the House of Representatives.
The measure mandates cuts to the franchise tax during future budget cycles when the Texas economy is projected to grow by at least 5 percent. Low oil prices means the state wouldn’t qualify this year, but the proposal could have a huge impact on future budgets.