A sound tax system is simple to understand, not overly costly to implement, and minimizes economic distortions. Compared to other states, Texas’ current tax system can be improved by repealing property taxes and replacing the revenues with a reformed sales tax.
Taxes & Spending
An Overview of the Business Franchise Tax: 2023 – 2027
Texas’s business franchise tax is costly, complicated, and time-consuming to observe. Its negative and distortionary effects should motivate policymakers to eliminate it entirely. Key points: Because of the substantial costs, large and small business owners can often spend more on compliance than on paying the franchise tax itself. Phasing out or repealing the tax altogether...
June 25, 2026