Local property taxes fund a substantial portion of public education in Texas today. Asthe Texas Legislature provides property tax relief, a new source of education revenuemust be found. This report examines the viability of creating a payroll tax to fundTexas public schools. Payroll taxes, the author finds, have proven damaging tobusinesses, employees, and citizens – increasing the cost of doing business, reducingemployment, depressing wages, reducing economic competiveness, and obstructingeconomic growth.
Local Government
Examining Local Government Spending Trends From 2014 to 2023
City and county spending has outpaced growth in population and inflation, leading to an increase in the tax burden on Texan taxpayers. Key points: Local government spending continues to outstrip increases in both population and inflation. From 2014 to 2023, local government spending rose by 61.2%, whereas population and inflation increased by only 42.7%. Elevated...
March 6, 2026