Why does Texas not have a State Income Tax?

Question

Just wondering

Answer 1

There are a total of 5 states that do not have an income tax. These states have chosen not to penalize their residents for working hard and earning money. Instead, they tax residents on the things that they purchase, allowing citizens to have some control over what they pay - spend less, pay less in taxes. Like Albert Einstein said "the hardest thing in the world to understand is the income tax".
These states are... Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. In addition, New Hampshire and Tennessee only tax residents on Interest and Dividend income, not wages or self-employment income. Kudos to all these states!

Answer 2

Does Texas Have State Taxes

Answer 3

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RE:
Why does Texas not have a State Income Tax?
Just wondering

Answer 4

When they made the Texas consitution, they decided against a state tax. I tried to find the specific reason, but it all sounded like a bunch of legal mumbo jumbo:

"Texas does not have a personal income tax. Section 24 of the article, added by an amendment adopted in 1993, restricts the ability of the Legislature to impose such a tax. Under the section, a law imposing a personal income tax must be ratified in a state-wide referendum to take effect; any further change in the tax must also be ratified to take effect, if it would increase the "collective liability" of all persons subject to the tax. The proceeds from the tax must first be used reduce local school property taxes, with any remainder being used for the support of education.

No such restriction exists on imposition of a corporate income tax or similar tax; in May 2006 the Legislature replaced the existing franchise tax with a gross receipts tax."

Answer 5

I guess Texas does not have a state income tax law. However, I know Texas does have sales taxes and property taxes.

Answer 6

Because their residents choose not to have one. They have other taxes rather than income tax to generate income for the state.

Answer 7

Each state is different. In a state like California, spending is so high, that they have to have an income tax.

Typically states that have no income tax have a high sales tax instead.

Answer 8

Texas funds itself mostly through sales tax and property taxes as well as through a few other sources (lottery, etc).

Frankly, any politician that proposed a state income tax here would be run out of office in a hurry. It would be political suicide (even though it might be a good idea)

Answer 9

Texas and Alaska have (or had) a large amount of oil and decided to obtain their revenue from the oil industry instead of a personal income tax. Other states do not have enough oil to do this, so most have a personal income tax.

Answer 10

There are a few states that don't have them.

However, there are a lot of toll roads where I live so I end up paying one way or another. It may not come out of my paycheck but it comes out of my wallet.