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Pros and Cons of Having No State Income Taxes
Evaluate the pros and cons of having no state income taxes. Should Lone Star State start taxing incomes or continue business as usual?
The state of Texas has a reputation for being a “low service, low tax” state. In fact, Texas prides itself on levying no state income tax on individuals or businesses. While Texas certainly provides a favorable environment for business, its tax system is often criticized for being too regressive. What are the major sources of state revenue in Texas? What are regressive taxes? And, are regressive taxes a fair way for the state to generate revenue? How does this contrast with a progressive taxation structure? Who are the winners and losers of the way Texas generates revenue?