As a member of the Conservative Texas Budget Coalition (CTBC), and as the nation’s oldest taxpayer organization, National Taxpayers Union (NTU) applauds the Texas Legislature’s recently passed budget for the next two fiscal years. The $209.4 billion plan keeps spending in check; the budget will grow at less than the rate of population growth in Texas plus inflation, which was a key marker established by the CTBC. This is an important step toward fiscal discipline in the state of Texas.
NTU was pleased with much-needed business and property tax relief included in the budget that is headed to Governor Abbott’s desk. The budget package cuts the business franchise tax by 25 percent while increasing the threshold to file an EZ form to $20 million. Likewise, the homestead exemption was increased by $10,000, which will help homeowners in the Lone Star state. Finally, the budget contains a provision requiring a super majority of a governing board to raise property taxes above the effective rate. These reforms go a long way toward making Texas an attractive state to start a business or raise a family.
Though the Texas budget is not perfect, state and federal budgets never are. The fiscal restraint coupled with sensible pro-growth tax reforms are positive steps on behalf of taxpayers in the Lone Star state. Accordingly, Texans can be proud of the Legislature’s efforts.