Floor Packet Page No. 905                                                   

	
Amend CSHB 3 by inserting the following new Section and 
renumbering any remaining sections accordingly:
	SECTION ___.  SPECIAL REPORT ON EFFECT OF CERTAIN TAX 
POLICIES ON PERSONAL INCOME AND BUSINESS.  No later than October 15, 
2006, the Comptroller of Public Accounts shall submit a report to 
the governor and each member of the legislature providing a 
comprehensive analysis of the effect of certain tax policies on 
personal income and business.  The report shall include, at a 
minimum, the following:
		(1)  the total amount of business taxes collected under 
Article 2, Reformed Franchise Tax;
		(2)  a profile of the businesses paying the reformed 
franchise tax by the number of employees, the amount of wages, the 
total amount of payroll taxes paid, the total amount of claimed 
credits, and the number and wages of employees over $90,000;
		(3)  a tax incidence analysis by income level on the 
increase in the sales tax rate on the sales tax base as that base 
existed prior to the effective date of this Act;
		(4)  a tax incidence analysis by income level on each 
sales tax exemption or exclusion repealed by this Act; and
		(5)  an analysis by income level of the Texans who 
itemize their federal income taxes and the amount of state sales 
taxes deducted from federal income taxes by income level."