Austin — Texas Association of Business (TAB) released a preliminary report it commissioned stressing the negative economic impact of the proposed changes to the Global Intangible Low-Taxed Income (GILTI).
The report found that the proposed changes could cost Texas as many as 107,000 direct and indirect jobs, resulting in $3.1 billion in lost wages and $6.5 billion in lost gross state product if the proposed GILTI tax changes are enacted. “At a time when we are struggling to recover from a global pandemic, we need incentives for businesses to create jobs and ramp up production. This drastic increase to the GILTI rate would slash Texas jobs and hurt the ability of American companies to compete internationally. We need to support economic and business recovery and relief, and any proposed tax changes must further that shared goal and certainly do no harm,” TAB CEO Glenn Hamer said.
This preliminary report prepared on behalf of TAB by EY’s Quantitative Economics and Statistics (QUEST) group and the Bureau of Business Research, University of Texas at Austin can be found here.
TAB is the voice for Texas businesses, representing more than 1,500 members and 200 local chambers. United to protect the business-friendly climate, TAB works on the frontlines, in a bi-partisan manner, to deliver real solutions that promote economic development in Texas. Follow TAB on Facebook, Twitter, and LinkedIn.