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:
- Texas Earned Income Tax Credit similar to 26 other states
- Texas Job Creation Tax Credit similar to 40 other states
- Texas Child and Dependent Care Tax Credit similar to 21 other states
- Texas state single payer healthcare system similar to Colorado
Alternatives:
- Make real estate sales public like 38 other states
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
Is Washington State’s High-Earners Income Tax Proposal Constitutional? Yes, but…
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 – 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
Income tax cap would cut North Carolina’s options in a crisis
Albuquerque Journal – Tax cuts aren’t helping build New Mexico’s economy
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