Texas continues to enact free market economic policies, which undoubtedly will continue to improve the state’s position vis a vis the other 49 states. This session, the state legislature passed, and Governor Perry signed, a small business tax cut.
In an interview with the AP (courtesy of Forbes), Governor Perry said, “Texas small businesses are the essential gears of our economic engine. They employ millions of Texans. This bill represents leadership paying attention.”
The tax cut bill, called a “small business stimulus package” by the director of the Texas office of the National Federation of Independent Businesses in the AP story, extends a tax exemption to small businesses making less than $1 million in annual revenue.
During the last several years, Texas has led the nation in job creation, exports, and business climate. Recent analyses indicate that Texas was one of the last states in the country to enter the national recession and will be one of the first states to emerge from it.
With no state income tax and competitive small business taxes, expect Texas to outpace the other 49 for years to come.