AUSTIN (KXAN) — Gov. Greg Abbott signed more than $4 billion in tax cuts for business and homeowners into law Monday morning. The bill cuts the business franchise tax by 25 percent and also send billions of dollars toward local school districts so property taxpayers don’t have to pay as much.
This comes a week after Abbott sent a letter to Connecticut-based General Electric hoping that these tax cuts lure the huge business to Texas.
“Have not heard back from GE yet,” said Abbott. “I look forward to visiting with them in person soon to explain to them how much more affordable Texas is than Connecticut, how much better Texas is as a state to do business in than Connecticut.”
Afterward, the governor got to try the latest in virtual reality — built at AMD Technology. He also hopes these cuts bring more tech companies to Texas.
What this means for you
Most taxpayers will get a break in some form. Nearly two-thirds of Texas families live in homes they own; this cut would save them an average of $125 a year.
Two-thirds of businesses paid the franchise tax last year. This proposal saves each, on average, about $10,000.
Everybody else will see no change, and this plan does not cut the sales tax.