Jose Navarro Balbuena
For Texas Governor 2030 • Katy Mayor 2028
Texas workers cannot survive on $7.25 an hour, yet small mom-and-pop shops cannot absorb sudden, unfunded wage spikes overnight. My policy creates an 18-month co-funded bridge: a $7.50/hr state indirect subsidy matched with a $7.50/hr employer contribution into a dedicated Texas Workforce Commission (TWC) Trust Fund to guarantee every worker a dignified $15.00/hour baseline. During the first 12 months, TWC pays and files all employer payroll taxes (FICA, FUTA, SUTA), with employer training in months 13–18 and free lifetime digital filing platform access for small businesses.
Bridging worker dignity with small business survival through the Texas Workforce Commission (TWC) Livable Wage Trust Fund:
"As a self-educated tax strategist and Texas solopreneur, I understand the everyday reality that corporate politicians in Austin ignore: Texas working families cannot survive on an outdated $7.25 minimum wage, but independent mom-and-pop shops cannot survive sudden, unfunded wage spikes and payroll tax burdens overnight.
Corporate monopolies like Amazon, Walmart, and Target can absorb higher wage mandates instantly using multi-billion-dollar balance sheets—and they use that leverage to bleed neighborhood businesses dry of talent. If Austin politicians simply mandate $15/hr without a bridge, our local mechanics, bakeries, medical billing offices, daycare centers, and family trades will shutter, handing our entire economy to Wall Street.
I don't manage corporate taxes, and as a solopreneur, I don't run a corporate payroll. I file individual and small business taxes, and I see firsthand how the crushing barrier of payroll taxes, reporting liabilities, and mandatory software subscriptions prevents solopreneurs and micro-enterprises from ever hiring their first employee. I see the truth every day: employer payroll taxes (FICA, FUTA, SUTA) and mandatory software subscriptions (ADP, Gusto) add an extra 10% to 15% cost per hour, paralyzing solo operators and small shops from hiring. My platform solves both sides: an 18-month co-funded partnership splitting the wage 50/50 between the State ($7.50/hr) and the employer ($7.50/hr). During the first 12 months, the Texas Workforce Commission pays and files 100% of employer payroll taxes. During the final 6 months, TWC trains the business on state filing procedures and gives them permanent, free lifetime access to a state digital filing and payment platform. We lift workers out of poverty from Day One, give solopreneurs and micro-businesses an affordable runway to scale, and build genuine, long-term generational wealth.
Crucially, because I file individual and small business taxes, I know exactly how dishonest operators attempt to game government programs. That is why I wrote strict anti-fraud and anti-nepotism guardrails directly into the statute: members of the same tax family are legally disqualified. Under federal tax law (IRC § 3121(b)(3)(A)), minor children working for their parents are already statutory FICA-exempt. We will never allow business owners to siphon public subsidies to artificially reduce their taxable business income or offload phantom wages onto non-working relatives. Every dollar of this subsidy is strictly reserved for genuine, arm's-length Texas workers acquiring legitimate trade careers."
A disciplined 3-phase public-private co-investment combining wage dignity, a 12-month payroll tax shield, and permanent small business infrastructure.
For the first full year of employment, the small business pays strictly the base wage share of $7.50/hour. The business is completely insulated from employer payroll tax liabilities and reporting red tape.
Zero software fees: Saves micro-businesses from forced $50–$150/month subscriptions to private payroll corporations (ADP, Gusto, Paychex).
During the final 6 months of the apprenticeship, the state continues funding the $7.50/hr indirect subsidy, guaranteeing the worker's $15/hr living wage without interruption while the employer transitions.
Financial empowerment: Builds authentic bookkeeping confidence, shielding entrepreneurs from IRS audits, late penalties, or predatory consultants.
The worker graduates to a permanent, fully proficient employee earning a living wage of $15.00+/hour, seamlessly absorbed by the small business's expanded customer capacity and revenue.
Generational retention: Over 80% of workers trained on-site remain with the small business as high-earning lead technicians and shop managers.
Micro-businesses and mom-and-pop shops receive an 18-month trial period with a dedicated worker at a net labor cost of only $7.50/hour ($300/week for full-time work). This eliminates the upfront cash-flow risk of expansion, allowing local shops to compete with corporate monopolies without risking payroll default.
Workers are legally guaranteed an unbreakable $15.00/hour floor from Day One while acquiring career-defining trade skills. Because the state’s $7.50 share is deposited directly by the TWC, the worker has a protected financial safety net even if a small business encounters seasonal cash flow slowdowns.
Unlike traditional corporate handouts (like Abbott’s Enterprise Fund) or unconditional stimulus checks, public funds are strictly conditioned on active work, certified trade skill acquisition, and mandatory 50% co-investment from local employers. True accountability with corporate skin in the game.
To ensure large corporate chains do not exploit public funds, and to prevent dishonest employers from gaming tax loopholes to self-deal or displace staff, my policy establishes ironclad statutory safeguards enforced by the Texas Workforce Commission:
Unlike programs that reward bigger companies with more slots, our apprentice cap is inverse to the owner’s Take-Home Income (Net Profit): (a) Under $50K Take-Home Profit (0–5 staff, ≤$1M sales): up to 4 apprentices (even starting from 0 employees with the working owner as hands-on mentor; max 2 per mentor) + full 18 months of 0% employer payroll taxes; (b) $50K up to $100K Single / $150K HOH / $175K Married (0–9 staff, ≤$2.65M sales): up to 3–4 apprentices + 12 months of 0% payroll taxes; (c) $100K/$175K to $250K Take-Home (1–15 staff): stepped down to max 2 apprentices; (d) $250K–$480K Crossover Zone (16–24 staff, $2.65M–$5M sales): max 1 transitional apprentice; and (e) Over $480K Take-Home Profit, 25+ staff, or >$5M sales: 0 apprentices (100% graduated/barred).
Dual verification required: Both the worker and the employer must log into the digital TWC portal monthly to certify verified hours worked and evaluate curriculum and skill milestones. Funds for the subsequent month are only unlocked after mutual verification.
Employers are strictly prohibited from firing, laying off, or reducing the hours of existing staff to hire subsidized apprentices. Any business violating non-displacement rules faces immediate removal from the program, 100% wage clawbacks, and statutory labor penalties.
Members of the employer's tax household are legally barred from qualifying (spouses, dependent children, or any individual claimed on the business owner’s tax returns). Under federal tax law (IRC § 3121(b)(3)(A)), minor children employed by parents in unincorporated businesses are already statutory FICA-exempt. We strictly prohibit business owners from exploiting public subsidies to artificially reduce their taxable income by off-loading wages onto non-working relatives or children. Every apprenticeship must be a verified, arm's-length Texas hire audited through TWC and Comptroller records.
| Economic Metric | Current Texas Law ($7.25 Federal) | Unfunded $15 Mandate (Big-Box Model) | My 50/50 Co-Funded Model (TWC + Small Business) |
|---|---|---|---|
| Worker Wage Floor | $7.25 / hr ($290/wk) | $15.00 / hr ($600/wk) | $15.00 / hr ($600/wk) |
| Small Business Hourly Wage Share | $7.25 / hr | $15.00 / hr (+107% sudden spike) | $7.50 / hr (Affordable runway) |
| Employer Payroll Taxes (FICA, FUTA, SUTA) | Employer pays ~7.65% FICA + FUTA/SUTA (~$0.65/hr) | Employer pays ~8.25%+ (~$1.25–$1.50/hr added tax) | $0 for Months 1–12 (100% Paid by TWC); employer transitions in Months 13–18 |
| Tax Return Filing Responsibility | Small business 100% liable for IRS 941, 940, and TWC C-3 | Small business 100% liable with zero assistance | Directly Prepared & Filed by TWC (Months 1–12); hands-on TWC training in Months 13–18 |
| Payroll Software & Platform Costs | $50–$150/mo mandatory fees (ADP, Gusto, Paychex) | $50–$150/mo ongoing commercial software fees | $0 • State Digital Platform during apprenticeship + Permanent Free Lifetime Access |
| State Investment & Support | $0 directly (Billions in emergency Medicaid & SNAP) | $0 (Unfunded government mandate) | $7.50 / hr Direct TWC Trust Fund Deposit + 12-Mo Tax Coverage |
| Apprenticeship Duration | None | None | 18 Months (Technical skill mastery) |
| Corporate "Skin In The Game" | Low (Exploits poverty wages) | Favors mega-chains with billions in capital | 50% matching co-investment by local employers |
| Protection Against Wage Theft | Weak regulatory enforcement | Standard payroll disputes | Direct electronic state deposit bypassing payroll |
| Anti-Fraud & Nepotism Guardrails | None (Pervasive audit exposure for informal family shifting) | None (Businesses pressured into under-the-table arrangements) | Strict Tax Family Exclusion: Zero FICA exploit for minor dependents (IRC § 3121(b)(3)(A)); no offloading income; 100% arm's-length verified hires |
| Impact on Mom-and-Pop Shops | High worker turnover & talent loss | Severe risk of small business closures | Empowers expansion & long-term solvency |
Compare the Status Quo (Texas Constitutional Ban on State Income Tax Art. VIII, § 24-a which I 100% support, 2023 SB 3 / Prop 4 CPI-adjusted to $2,650,000 for 2026–2027, and 2025 ballot amendments), expose why a "state $25/hr wage tax credit" is false promising ($0 state tax under $2.65M to credit against), and calculate exact tax & non-compliance exposure across Single-Member LLC, Multi-Member LLC, S-Corp, and C-Corp entities.
| Owner Take-Home Income & Shop Scale | Max Apprentices (Inverse Ladder) | TWC $15/hr Co-Funding & 0% Payroll Tax Shield | How It Crosses With the $2.65M Business Standard Deduction |
|---|---|---|---|
| Tier 1: Startup & Low Take-Home Solopreneurs Take-Home Profit <$50K/yr • 0–5 Staff • ≤$1.0M Sales |
★ Up to 4 Apprentices (Even with 0 W-2 staff; working owner is mentor, max 2/mentor) |
★ Maximum Help: $7.50 State + $7.50 Employer (18 mos) + Full 18 Months of 0% Employer FICA/FUTA/SUTA paid & filed by TWC. | 100% Tax-Free ($0 Franchise Tax) under $2.65M + $150 flat Schedule C fee + 0% federal income tax under my $100K/$150K HOH/$175K Personal Standard Deduction so a 1-person hustle can grow into a 3–5 person shop. |
| Tier 2: Working-Class Micro-Shops Take-Home $50K up to $100K Single / $150K HOH / $175K Married • 0–9 Staff • ≤$2.65M Sales |
Up to 3–4 Apprentices (Max 2 per working owner or W-2 mentor, max 4 total) |
$7.50 State + $7.50 Employer (18 mos) + 12 Months of 0% Employer Payroll Taxes (Months 13–18 TWC training). | 100% Tax-Free ($0 Franchise Tax) under $2.65M + 0% federal income tax within the owner’s Personal Standard Deduction. |
| Tier 3: Growing Small Shops (1% Bracket Zone) Take-Home $100K/$175K to $250K/yr • 1–15 Staff • ≤$2.65M Sales |
Stepped Down: Max 2 Apprentices | $7.50 State + $7.50 Employer (18 mos) + 12 Months of 0% Employer Payroll Taxes. | 100% Tax-Free ($0 Franchise Tax) up to $2.65M + 1% federal marginal rate under $250K. |
| ★ Tier 4: THE CROSSOVER ZONE Take-Home $250K–$480K/yr or $2.65M–$5.0M Sales (16–24 Staff) |
Stepped Down: Max 1 Apprentice (Final transitional slot) |
Final transitional slot before full graduation + Free Lifetime TWC Filing Platform. | The Exact Crossover: As payroll pushes sales across $2.65M, my $2.65M Business Standard Deduction + 3% Take-Home Cap kicks in immediately (zero Dollar-One Cliff), deducting 100% of out-of-pocket employer wages without double-dipping TWC’s $7.50 share. |
| Tier 5: Graduated / High-Profit / Big Business Take-Home >$480K/yr or 25+ Staff or >$5.0M Sales |
0 Apprentices (100% Graduated / Barred) | 0% Cash Subsidy (Keeps Free Lifetime TWC Filing Portal if graduated from Tiers 1–4) | Relies on $2.65M Business Standard Deduction + 3% Take-Home Cap + 100% W-2 Wage Deductibility up to $10M (phasing out $10M–$20M; $0 deduction above $20M). |
1040-X, 1065-X, 1120-X, or amended Texas Franchise report) to retroactively lower its Take-Home Income or Gross Sales below $480K, $250K, $5M, $10M, or $20M to claim TWC apprentice slots, the $2.65M Standard Deduction, or the 3% Take-Home Cap.
Section 179 / bonus depreciation paper write-offs to pretend they made “under $50K Take-Home Profit.” Take-Home Income counts Net Profit + Owner/Officer W-2 Pay + K-1 Distributions + Related-Party Rent/Fees + Accelerated Depreciation above cash outlay.
§ 171.1013)—never the State’s $7.50/hr TWC subsidy or TWC-paid payroll taxes.
Form 941-X / TWC C-3 payroll amendments or 1099/PEO reclassifications to fake small headcount (locked at 12-month peak headcount), and any downward Franchise Tax amendment >25% yields $0 cash refund (future credit carryforward only).
§ 171.255 personal liability piercing, and $50 report penalties for $0-tax-due small businesses.Art. VIII, § 24-a) while eliminating the 15.3% IRS Self-Employment tax on Single-Member & Multi-Member LLCs.