Gov. Perry is looking to have the small business tax cuts made a permanent fixture in an effort to further stimulate the economy and kick start job creation. If successful, the tax measures will help Houston-based owner-operators no matter whether they employ other trucker drivers or operate as sole operators.
The Governor made his announcement at a recent visit to the Ols Maintenance Supply facility in Houston, with the hot topic being the state of the Texan economy. Small business owners have long been identified with job creation, and in a lean economy just shaking off the effects of a really bad recession, a lot of hope is placed on the dynamism of the Houston small business sector.
Keeping tax rates low for small businesses is considered to be a key tool for assisting small businesses to get their feet off the ground, to take on more business as they thrive and more staff to service it. Preserving a beneficial economic environment which rewards small business owners who take risks, by letting them keep more of the rewards from their efforts. In addition, as entrepreneurs, small business owners are in a far better position to decide whether the profits which are free of taxes should be reinvested back into the business, further stimulating the economy and leading to more opportunity for job creation.
Gov. Perry reiterated that the state must keep within its financial means during these harsh financial times with budgets realistically representing what the state can afford. That means preserving essential services whilst not raising taxes. The threat of tax hikes will stifle economic development and cause businesses, especially small businesses to hold back on vital reinvestment which in turn will lead to delays in creating jobs.
So far, the policies appear to have been working with Texas leading the rest of the US in job creation within states. A key element of this rejuvenation is the stable tax and regulatory regime which is in force, and which also strongly argues for no further changes in the tax rates for small businesses.
There were some other issues Gov. Perry touched on including:
- Loser pays all in law suits to stop mischievous or frivolous filing of lawsuits;
- Expedited process for lawsuits for amounts between $10,000 and $100,000; and
- Early dismissal filters to stop frivolous lawsuits clogging up the legal system.
The idea behind this is it will make it simpler and easier to file claims for non-payment of invoices and allow small businesses to get money they are owed faster.
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