Friday, April 18, 2014

Everything's Bigger in Texas, Except for the Taxes

Texas Sign

Our State's lack of individual income tax has certainly been a primary draw for many residents. Being one of only 7 states without any a personal income tax, it really outshines states like Oregon, which imposes an enormous income tax burden on its citizens. Plus, with 52 Fortune 500 companies in the state, and 12.9 million people constituting its workforce, Texas is keeping-- and strengthening-- its track record for being one of the most prolific business hubs in the nation.

Forbes Agrees: Can't Beat Texas Tax Law

Certainly there are lots of things that increase Texas' booming overall economy. Two of the most notable ones? Forbes says Texas' tax framework and the many different tax benefits that Texas presents to businesses. Actually, the Lone Star State has one of the smallest tax burdens in the country. Here's a more detailed look at the regulations that make Texas such a business-friendly state:/p>

-As a result of the Texas Tax Reform Commission, Texas changed out its franchise business tax in 2008 with a design that more adequately mirrored the structure of small companies and helps the state continue being a more competitive player in the U.S. economy.

-The revised margins tax replaced an out-of-date franchise business tax that was developed at a time when the state's economic situation was driven by products rather than services. With the latest law, the main franchise tax rate dropped from 4.5 % to around .5 and 1 %. Also, an exemption is provided to companies with a profit below $1 million-- a move that helps 40,000 local business in Texas.

The biggest initiative of this type in the U.S., The Texas Enterprise Fund was formed to catch the attention of out-of-state companies by incentivizing job creation and capital investment. Worth more than $410 million, the fund offers awards ranging anywhere from $194,000 to $50 million to eligible companies. The Texas Enterprise Fund has pulled in such operations as Bank of America, Fidelity Global Brokerage, Lockheed Martin and Frito-Lay. It has also caused a massive technology influx in Austin where companies like Apple, Facebook, Sematech, and Samsung have recently set up shop.

Texas Attorney: "Small Businesses Can't Afford Not to Partner with Texas"

"Texas grants a great number of tax incentives to its own businesses" states Joe Garza - Attorney and Chief Partner at Garza & Harris. "Incentives are given for everything from manufacturing to pollution control to renewable energy - these incentives make Texas a rock-solid partner for business owners operating in-state". For example, privilege from state sales and use tax on natural gas and electricity are provided to manufacturers. Additionally, enterprises that take advantage of renewable energy programs, such as solar and wind power, are eligible for a multitude of tax exemptions. Concessions such as these can really add up for business owners seeking to sustain and become a business in Texas.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.