Medicaid was created by Congress in 1965 and came to Texas two years later, a program designed to provide health benefits to specific groups—initially, to recipients of certain cash assistance programs. Since then, eligibility has gradually expanded and caseload growth has made Medicaid the single largest program in the state budget. In 2001, Medicaid consumed 20% of the All Funds (AF) budget but now accounts for nearly 30% of the 2016-17 budget.
Taxes & Spending
An Overview of the Business Franchise Tax: 2023 – 2027
Texas’s business franchise tax is costly, complicated, and time-consuming to observe. Its negative and distortionary effects should motivate policymakers to eliminate it entirely. Key points: Because of the substantial costs, large and small business owners can often spend more on compliance than on paying the franchise tax itself. Phasing out or repealing the tax altogether...
June 25, 2026