A sound tax system is simple to understand, not overly costly to implement, and minimizes economic distortions. Compared to other states, Texas’ current tax system can be improved by repealing property taxes and replacing the revenues with a reformed sales tax.
Reinvigorating Federalism and Fiscal Discipline in Texas: Establishing the Office of State Sovereignty
Texas governments received $84.3 billion in federal funding in 2023, raising concerns over financial dependency and regulatory consequences. Creating an Office of State Sovereignty to monitor the application, receipt, and conditions of this aid could mitigate fiscal risk and improve transparency. Key points: Texas lacks a centralized system to oversee federal grants potentially flowing to...