Texas Adds Tax Break for Retailers

Texas legislators have created a law that allows Texas cities of all sizes to offer retailers sales tax breaks in special investment zones. Why? One reason is Texas relies heavily on retail sales taxes and therefore its economic development organizations work to attract more retail.

Not all agree this is a good idea. From where I sit, it does not strike me as the right thing to do.

I guess some in Texas would with me. "San Antonio sees sales tax incentives as the recirculation of existing money, Cavazos said, and prefers to target its incentives at new economic projects such as Washington Mutual's planned financial center or the Toyota supplier park."

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