The Wall Street Journal on Monday reported that the Trump administration is pushing ahead with the tax overhaul that has already prompted concern in Texas, but also an array of companies that could be harmed by the plan.
The Wall St. Journal article quoted officials in the Texas Department of Commerce and Industry, which oversees Texas’ tax and other tax policies, as saying that tax reforms will make the state’s economy stronger and will result in job creation.
“We have seen that for the last couple of years, and we think it’s a strong model,” said Tom Lutz, the director of the department’s economic development.
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But the report said that the tax reform could be devastating for the state as it attempts to attract and retain business investment and keep its economy humming.
“The big question is: Will the new tax reform help the state, or will it hurt it?” said David Weigel, the chief economist for the Texas Association of Business, a trade group.
“This is a very, very expensive tax reform for Texas and the rest of the country.”
Lutz said the state will have to rely on other states to help it deal with the fallout from the tax bill, including a potential federal government shutdown that could leave the state without revenue to pay for its social safety net.
“You have to do something to make sure that it doesn’t impact Texas.
It’s not going to impact our economy,” Lutz told The Texas Observer.
“But I think that’s where Texas will be in the future if it’s forced to go out of business, in terms of investment, because the tax system is just so bad.”
The report cited a report from the nonpartisan Congressional Budget Office that estimated that the Republican tax overhaul could cost Texas an additional $4 billion over 10 years, largely because of higher state taxes on businesses.
But Lutz and others said that could have been offset by higher federal tax revenues that the new system will generate.
“I think we will see that there is some benefits to a lot of companies in the state,” Luttisaid.
But they’re not going have to change how they operate.” “
For businesses that are going to be impacted, they’re going to have to look at their tax structure, how they’re structured and how they pay their taxes.
But they’re not going have to change how they operate.”
The Texas Association also said that Texas’ unemployment rate, which was 5.4 percent last year, would increase by about a percentage point under the new reforms.
The nonpartisan Legislative Fiscal Bureau estimated that tax cuts would cost Texas $4.2 billion over the next decade, which would be a net loss of $4,400 per employee, the Tribune reported.
“If Texas had a budget that was actually balanced, that we could see that $4 million decrease, that’s a net reduction in revenues of $1,300 per employee,” Luthisaid, the former governor of Texas, told the newspaper.
“And that is what we’re looking at.”
But Lutysaid added that the state could be able to absorb the loss of revenue by cutting other taxes.
“It’s just going to increase their taxes, it’s going to make it harder for them to hire people, it is going to hurt their growth,” he said.
“So it’s not just that they’re losing money.
It will be a significant net loss to the state of Texas.”
Luthsaid said that, while the tax cuts were designed to boost economic growth, the state is still going to see some of the economic damage from the legislation, including the loss in tourism and the loss to business.
“Texas is a state that’s really going to suffer if it becomes less competitive,” he told the Tribune.
“That’s the reality of the bill.
It doesn’t work for everybody.
“There are a lot more businesses that will leave the Texas economy because of the tax plan.” “
Our economic development is really the only thing that has not changed in Texas,” he added.
“There are a lot more businesses that will leave the Texas economy because of the tax plan.”
A number of other business leaders, including leaders of major construction companies and energy companies, have also expressed concern about the impact of the proposed tax reform.
Texas Tribune reporter Mark Bierko contributed to this report.
The Associated Press contributed to the story.