Should the state of Texas start taxing incomes or continue business as usual?
While Texas certainly provides a favorable environment for business, its tax system is often criticized for being too regressive. Evaluate the pros and cons of having no state income taxes. Should Lone Star State start taxing incomes? 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? Who are the winners and losers of the way Texas generates revenue? When thinking about this question, you should assume that states that feature no income taxes must resort to more regressive taxes to generate revenue.