Proposing a constitutional amendment requiring any increase in a franchise tax rate to be approved by two-thirds of all the members elected to each house of the legislature.
The potential impact of SJR20 on state laws is significant, as it would alter the current legislative process concerning franchise tax rate increases. By mandating a two-thirds majority for approval, this bill could effectively shield taxpayers from sudden tax hikes that might arise from political maneuvering. This shift seeks to promote fiscal responsibility and greater accountability among legislators, compelling them to garner broader support for tax increases, which could lead to more deliberative and considered legislation.
SJR20 is a joint resolution proposing a constitutional amendment to the Texas Constitution that would require any increase in the franchise tax rate to be approved by a two-thirds majority vote of all members elected to each house of the Texas Legislature. This proposed change aims to provide stricter controls over tax increases, thereby ensuring that any efforts to raise the franchise tax are met with substantial legislative support. The amendment would prevent straightforward legislative passage of such tax increases without significant consensus among lawmakers.
Notably, SJR20 may provoke debates around fiscal policy and governance. Supporters of the bill are likely to argue that it enhances transparency and restricts hasty decisions that could burden taxpayers. Conversely, opponents might contend that the two-thirds requirement could hinder necessary funding for public services and infrastructure projects, particularly during economic downturns when such revenues might be critical. The resolution's traction will depend on how these competing perspectives resonate with legislators and the electorate, particularly in relation to tax reforms and government funding priorities.