Texas Constitution Assignment – Prohibiting a State Income Tax

How is the Texas Constitution changed? As you’ve read in your text, changes to the Texas Constitution are proposed by the state legislature, but can only be approved by a majority vote in a statewide election. In 2017, voters adopted all seven amendments proposed by the state legislature. Texas is one of only seven states with no state income tax (Links to an external site.), and is the only large state not to impose one. Many credit Texas’ strong economy in part to the lack of an income tax. Companies that relocate to Texas see employees get what amounts to an automatic pay raise with no state income tax deducted from their paychecks. On the other hand, Texas has relatively high property and sales taxes – arguably less efficient (property tax) and more regressive (sales tax) than a graduated income tax like the one used by the federal government. The poor have to spend a larger percentage of their disposable income just to get by. We try to correct for that by exempting things like groceries and medicine, but studies show the poor still pay a higher percentage. Property taxes are regarded as fundamentally unfair (the value – on paper – of your property has little to do with your ability to pay) and inefficient (owners – especially with high-value properties – spend tremendous amounts of time and energy fighting their appraised values). This year, state legislators are proposing that voters change the Texas Constitution to simply prohibit the state from imposing an income tax. What does that really accomplish? Couldn’t Texas change it back if the legislature ever wanted to create a state income tax? Sure, but it would take a 2/3 vote of both the House and Senate, and a majority of voters. Anti-income tax Republicans saw Beto O-Rourke’s near victory in last year’s U.S. Senate race, and are looking ahead to unpopular President Donald Trump’s 2020 reelection race. Many see a strong possibility of future Democratic majorities in the legislature. A constitutional prohibition would make it much harder for Democrats to impose an income tax.