The Dreaded, Unspeakable "I" Word

Yes, according to the UT/Texas Tribune Poll, only six percent of Texans favor an income tax.

However, with rising property taxes at the local level of government--primarily to support public education, the legislature would do well to think the unthinkable--an income tax. Why?

In Article VIII of the Texas Constitution, an amendment, passed in 1993, required that if the Texas legislature created a personal income tax and voters approved it, the revenues would have to be distributed to reduce the property tax for public education (two-thirds of the revenue) and to support public education (one-third of the revenue). 

The combination of rising property taxes to fund public schools, the decline in the percentage of funding for public education that is provided by the state--approximately 36 percent, and the growing number of school districts that are required to share their property tax revenue with poor districts under Chapter 42 has created a perfect storm for a consideration of a personal income tax.

How would it work? In 2005, Representative Eddie Rodriguez (D-Austin) offered an income tax bill (HB 33) during the first special session of the 79th Legislature. Borrowing the tax rates from that proposal, the chart displays how various income levels would be affected by an income tax.




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