The Facts
  • Texas is one of nine states without an income tax.
  • Income taxes damage a state’s economy more than any other tax because they disincentivize capital investment, productivity, job creation, wages, and economic expansion.
  • Short-term revenue gains from a new personal income tax are outweighed by the long-term economic damage the tax creates.
  • The nine states without an income tax outperformed the nine states with the highest marginal income tax rates in nearly every important economic area from 1999 to 2009 including in such measures as Gross State Product Growth, Personal Income Growth, Population Growth, Net Domestic In-Migration as a Percentage of Population, and Non-Farm Payroll Employment Growth.
  • In addition, the nine states without an income tax also outperformed the national average in every metric above.
  • Do not create a personal income tax in Texas.
  • Encourage economic growth by keeping taxes low and adopting pro-growth reforms.