68
      Wednesday
      93 / 68
      Thursday
      92 / 67
      Friday
      90 / 67

      Law softens 'tax cliff' for many small businesses

      AUSTIN, Texas (AP) - As many as 26,000 companies statewide - or almost one in four across Texas - will see tax savings this year thanks to a major new deduction passed by the Legislature.

      The Austin American-Statesman repots the law approved last year softens what small business owners used to call "the cliff" for the franchise, or business margins, tax.

      Since 2006, earning anything over $1 million in gross annual receipts suddenly meant a tax bill for businesses that shot from zero to thousands of dollars.

      Now, the cliff has become something of a slope. Businesses making between $1 million and $3.3 million in gross receipts in 2014 will face a more gradual tax bill.

      But critics note that the change will mean less state revenue for things like public schools.

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      Information from: Austin American-Statesman, http://www.statesman.com

      (Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)