If you've got an IRS letter on your desk right now, you have a decision to make, and the clock matters. I'm Darrin Mish. I've spent 32 years helping people with exactly this kind of situation. Here's what you should do.
Since December 2007, Texas has created more jobs than all other U.S. states combined. Further, recently proposed policy changes are expected to help fuel continued economic growth by cutting taxes and associated expenses. The changes will provide an estimated nearly $4 billion in tax relief.
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One proposed change is a 25% reduction of the business franchise tax.This tax is a burden because even unprofitable companies must pay it and because compliance costs are excessive. If this tax were eliminated, Texas would jump from the 10th best business tax state to third best.
Property tax relief was also part of the tax relief package. If approved by voters, the homestead exemption will go up to $25,000. In spite of being a low tax state to begin with, Texas was not content with business as usual. Instead, they proactively pursued improvements to an already good tax climate. They are not repeating the mistakes made by nearby states this year that blocked pro-growth tax cuts and fell further behind as a result.
Texas legislators also resisted temptation to ramp up spending that some special interests were advocating. The state budget will rise, but it will do so at a reasonable rate, not an exorbitant one. Although they did not go through, for the first time, spending caps were proposed.
These developments grew in part out of important recent rules changes. In January, the Texas Senate agreed to changes that effectively prevents bills from being blocked by a small minority of senators.
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