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.
Should HJR87 be enacted, it would fundamentally alter the legislative process regarding franchise tax increases in Texas. This amendment would ensure that any attempts to increase the franchise tax would not only require approval from a simple majority but would instead necessitate broad bipartisan support, effectively making tax increases more challenging to enact. The implications of this change could lead to a more stable tax environment, potentially attracting businesses concerned with fiscal unpredictability.
HJR87 is a joint resolution proposing a constitutional amendment that mandates a two-thirds majority approval from both houses of the Texas Legislature for any increase in the franchise tax rate. The amendment aims to enhance the scrutiny of tax increases by ensuring that a substantial consensus is necessary for approving such changes. This proposed measure underscores a push for more stringent legislative processes concerning tax matters, reflecting the sentiment to limit government capacity for tax hikes without significant legislative support.
The discussions surrounding HJR87 have likely revealed points of contention among lawmakers. Proponents argue that requiring a two-thirds majority will prevent sudden and potentially harmful tax increases that could negatively affect businesses and the state economy. Conversely, opponents may view this amendment as a hindrance to necessary fiscal policy adjustments, arguing that it could lead to legislative gridlock and limit the state's ability to respond effectively to financial needs. This debate encapsulates broader concerns about fiscal policy and governance in Texas.