Personal Income Tax in Texas

When it comes to implementing a personal income tax in Texas, many have differing opinions. Some say it is beneficial because it brings jobs to the state, while others believe it is hurting the poor.

Opponents to bringing a state personal income tax say that not having an income tax brings innovation and job growth. They often compare Texas to the rest of the country during the recent recession as back up to their argument. They also say having no income tax helps keep young, educated individuals in the state to work.

People who want Texas to implement a state tax say not having a personal income tax hurts the poor. Studies have shown the poor is taxed a greater amount, as percentage of their income, when a state has no personal income tax. No personal income tax has been a factor leading cities and school districts to be underfunded, which requires them to go into debt. They have to pay for more things because the state does not have the funds to pay. This requires Texans to be taxed at a higher rate on other things, like their property.

I think Texas should keep their no personal income tax policy. While there are some problems within Texas regarding their personal income tax policy, at a mere glance, the Texas tax policy looks promising. The reason Texas does not have the money to build things like new roads or fund education is not only because they do not collect personal income tax. For example, Texas has not raised their tax on gasoline, of which a portion of it goes to transportation and education, since 1991.  Texas could implement a personal income tax and have less taxes other places, including property tax, but it would likely not look as appealing to people thinking about living in Texas. This would mean Texas could lose much of its innovation and growth we prided ourselves on.  While correlation may not mean causation, many states think because Texas has no personal income tax, it did very well during The Great Recession of 2008. Texas has come out of the recession on top. Personal income tax may not have been the deciding factor of that, but implementing a personal income tax will NOT help Texas stay on top.