PERRYMAN GROUP HIGHLIGHTS ECONOMIC BENEFITS OF SHARP TAX PROPOSAL
Dr. Ray Perryman
An analysis by The Perryman Group (TPG), an economic research firm based in Waco, reveals that a proposed tax reform measure could bring substantial benefits to the Texas economy. The plan put forth by the Texas Tax Reform Commission, chaired by former Comptroller of Public Accounts John Sharp, represents a substantial overhaul and modernization of the tax system in Texas. The plan would reduce school property taxes significantly, eliminate the current corporate franchise tax, and enact an "alternative margins tax" designed to offer a fair and equitable distribution of the business tax burden (as well as a few other items).
According to Dr. M. Ray Perryman, the President of the firm which conducted the analysis, "In addition to its role in helping to meet court-imposed mandates regarding the financing of public education, this proposal has considerable merit. By reducing property taxes and eliminating the current capital stock component of the franchise tax, it removes much of the penalty presently imposed on large, capital-intensive enterprises. As a result, it will serve as a stimulus to investment and economic development. Moreover, it spreads the burden of taxation more equitably across various sectors of the state’s business complex, thus making the system more responsive to future expansion in overall state performance and fiscal needs. The reductions in property taxes also serve as a catalyst to future real estate development. In essence, this measure, if enacted, would represent a notable milestone in moving the Texas tax structure away from an ‘industrial revolution’ model and more toward one suited for an information and technology society." More....
An analysis by The Perryman Group (TPG), an economic research firm based in Waco, reveals that a proposed tax reform measure could bring substantial benefits to the Texas economy. The plan put forth by the Texas Tax Reform Commission, chaired by former Comptroller of Public Accounts John Sharp, represents a substantial overhaul and modernization of the tax system in Texas. The plan would reduce school property taxes significantly, eliminate the current corporate franchise tax, and enact an "alternative margins tax" designed to offer a fair and equitable distribution of the business tax burden (as well as a few other items).
According to Dr. M. Ray Perryman, the President of the firm which conducted the analysis, "In addition to its role in helping to meet court-imposed mandates regarding the financing of public education, this proposal has considerable merit. By reducing property taxes and eliminating the current capital stock component of the franchise tax, it removes much of the penalty presently imposed on large, capital-intensive enterprises. As a result, it will serve as a stimulus to investment and economic development. Moreover, it spreads the burden of taxation more equitably across various sectors of the state’s business complex, thus making the system more responsive to future expansion in overall state performance and fiscal needs. The reductions in property taxes also serve as a catalyst to future real estate development. In essence, this measure, if enacted, would represent a notable milestone in moving the Texas tax structure away from an ‘industrial revolution’ model and more toward one suited for an information and technology society." More....
posted by Rusty @ 3/30/2006 11:37:00 PM
0 Comments:
Post a Comment
<< Home