Texas Legislators Discuss Tax Changes, Not Hikes

Top lawmakers are discussing changes to the Texas business tax, but they promise not to use the reforms to raise revenue to battle the state's budget woes.

Gov. Rick Perry, Lt. Gov. David Dewhurst and House Speaker Joe Straus -- all Republicans -- met for breakfast Wednesday in Austin.

The leaders later told reporters that they'd balance the strained Texas budget without new taxes.

But Perry held the door open to legislation reforming the state's business tax, which has provided far less revenue than originally projected.

The governor says he'd consider reforms aimed at "fixing any inequities" in the tax system.

Texas lawmakers, according to projections released Monday, face a possible revenue shortfall of at least $15 billion for the next two-year budget, compared to current spending.

Copyright AP - Associated Press
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