Texas’ margins tax: principles for reform
Feb 1, 2012
This policy brief, co-authored by R Street President Eli Lehrer and Texas Director Julie Drenner, was issued by the Heartland Institute in February 2012. The pair looked at Texas’ franchise tax, a 1% levy on businesses’ “taxable margins” that operates much like an income tax. Since its introduction, the tax has fallen far short of lawmakers’ intended revenue targets, while also imposing a wasteful and needlessly complex reporting and filing system on the state’s business community.