Tyler

By BRIAN PEARSON
Business Editor

Businesses can expect the Texas Legislature this year to address the pesky state franchise tax that has kicked up a whirlwind of criticism, state Rep. Leo Berman said during a Tyler luncheon Tuesday.

"A lot of companies are paying twice what they paid before," Berman, R-Tyler, said at a Tyler Area Builders Association luncheon at the Hollytree Country Club. "In the near future, we're going to see a good franchise tax that is fair and equitable for everyone."

Under the current franchise tax, the small-business tax exemption is $300,000, and Berman said that could be pushed up to $1 million.

He added that proposed revisions to the franchise tax are a product of legislators meeting with business representatives statewide.

Renewing a battle cry from the previous legislative session, Berman also addressed an illegal-immigrant problem he said continues to be swept under the legislative carpet.

In addition to spending $40 million a year on illegal immigrants in prison, the annual health care cost for illegal immigrants in Texas totals about $4 billion, he said.

"There are very few legislators who want to deal with it," Berman said. "They're afraid of losing Hispanic votes."

He said an ideal way to stem the problem is to not allow children of illegal immigrant to get birth certificates and be U.S. citizens.

He said the 14th Amendment, which addresses citizenship, was created to guarantee citizenship for slaves. The amendment contains the wording "and subject to the jurisdiction thereof," which would not apply to those who can't vote, can't be drafted for military services and do not meet the jurisdictional definition.

Berman said that if the state passes a law that keeps children of illegal immigrants from getting a birth certificate, a legal challenge is sure to follow. The law likely would hold up all the way to the Supreme Court, he said.

In other action at the builders association lunch, Nancy Barron was welcomed as the 2009 president, replacing Vic Thompson.

Ms. Barron urged the builders at the luncheon to remain optimistic even in troubled economic times.

"I encourage you this year to try to be positive," Ms. Barron said.