Individual Income Tax

individual income tax
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Texas Constitution:
Section 24 (A)
Personal Income Tax; Dedication of Proceeds. (a) A general law enacted by the legislature that imposes a tax on the net incomes of natural persons, including a person’s share of partnership and unincorporated association income, must provide that the portion of the law imposing the tax not take effect until approved by a majority of the registered voters voting in a statewide referendum held on the question of imposing the tax. The referendum must specify the rate of the tax that will apply to taxable income as defined by law.”

Section 24 (F)
In the first year in which a tax described by Subsection (a) is imposed and during the first year of any increase in the tax that is subject to Subsection (b) of this section, not less than two-thirds of all net revenues remaining after payment of all refunds allowed by law and expenses of collection from the tax shall be used to reduce the rate of ad valorem maintenance and operation taxes levied for the support of primary and secondary public education. In subsequent years, not less than two-thirds of all net revenues from the tax shall be used to continue such ad valorem tax relief.

Section 24 (G)
The net revenues remaining after the dedication of money from the tax under Subsection (f) of this section shall be used for support of education, subject to legislative appropriation, allocation, and direction.

 

Solutions:

Amend the Texas constitution so legislators may pass an income tax similar to 43 other states:

  • Require that there be a simple approval in both the house and senate to create an income tax
  • Require that there must be a simple majority in both the house and senate to raise the income tax
  • Repeal the text in the Texas constitution stating that income taxes be used to offset education

Use a state individual income tax to fund ideas such as but not limited to:

 

Alternatives:

 

Texas Constitution
Code – Texas Constitution
Article – 8 Taxation and Revenue
Section 24 (A), (F), (G) – Personal Income Tax; Dedication of Proceeds

 

Ballotpedia – Texas Income Tax, Proposition 4 (1993)

Ballotpedia – Florida Income and Inheritance Taxes, Amendment 1 (1924)

Ballotpedia – Washington State Income Tax Initiative (2010)

Nevada tax could face same constitutional hurdle as Perry’s Texas tax

Gainesville Sun – State income tax unthinkable in Florida

Gov. Walker proposes to fix budget deficit with income tax, PFD cut

New York Times – As Oil Money Melts, Alaska Mulls First Income Tax in 35 Years

Center for American Progress – Rich People’s Taxes Have Little to Do with Job Creation

The Best Choice For a Prosperous Texas : A Texas-Style Personal Income Tax

Valdez Star – Alaska income tax: a closer look at Governors proposal

State Impact – How Alaska Abolished Its Individual Income Tax

Wall Street Journal – Alaska Governor Calls for State’s First Income Tax in Nearly Four Decades

Massachusetts Budget and Policy Center: Automatic Income Tax Rate Cuts: Frequently Asked Questions

MLPP – A token tax cut — A bad deal for everyone

MLPP – Graduated Income Tax: Making our system fairer while raising needed funds

MLPP – Income Tax Cuts – Financially Irresponsible and No Economic Benefits

MLPP – Tax Cuts Won’t Grow the Economy

Texas Monthly – For an Income Tax

Forbes – California Can’t Mimic No Income Tax Texas Without Substantial Spending Reforms

CBPP – Policy Basics: State Super Majority Rules to Raise Revenues

The Strange, Short Story Of Washington State’s Income Tax

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Washington Policy Center – Graduated income tax amendment proposed

Washington state treasurer proposes cutting some taxes, creating income tax

Pew – States Debate Who’s Helped, Hurt in Shifting Tax Burdens

Alaska Dispatch News – Alaska senators concoct extreme income tax survey question to get desired answer

Alaska Dispatch News – How the ‘Hands off my PFD’ attitude hurts Alaska

Alaska Dispatch News – Governor Walker to lawmakers: We need a new tax this year

Institute of Taxation and Economic Policy – Distributional Analyses of Revenue Options for Alaska

Governor of Tennessee signs Hall income tax cut, repeal into law

ITEP – Tennessee Hall Tax Repeal Would Overwhelmingly Benefit the Wealthy, Raise Tennesseans’ Federal Tax Bills by $60 Million

Income tax cap would cut North Carolina’s options in a crisis

Albuquerque Journal – Tax cuts aren’t helping build New Mexico’s economy