This brief is based on testimony presented before the Senate Finance Committee, March 15, 2006. Foundation chief economist Byron Schlomach, Ph.D., provides a sound case for why Texas should move more toward consumption taxes and away from distorting taxes like the franchise tax.
Taxes & Spending
Throwing Cold Water on Kendall County’s HOT Idea
Despite persistent affordability concerns, the Kendall County Commissioners’ Court is once again flirting with the idea of creating a controversial new tax to benefit select businesses at the expense of virtually everyone else. The tax in question is the hotel occupancy tax (HOT) and, if ultimately approved, officials would place another financial strain on any person who pays for a hotel room or other lodging, including inns, motels, and short-term rentals. The cost could be significant too. According to one recent report presented to the Court (see pgs. 133...
July 7, 2026