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Personal Income Tax

Policymakers should note that not all methods of collecting taxes are created equal. While each tax affects behavior differently, a personal income tax is among the most pernicious because of the negative effects it has on earnings, productivity, and wage gains.

“No personal income tax is ideal for state lawmakers, as there are other ways to collect taxes without incurring such harmful economic effects or enlarging bureaucracy. ”
— Vance Ginn, Ph.D.

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Vance Ginn, Ph.D.

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Recommendations

  • Never create a personal income tax in Texas.
  • Encourage economic growth by keeping taxes low and adopting pro-growth reforms.

Talking points for liberty fighters

  • Texas is one of nine states without a personal income tax.
  • Income taxes substantially damage a state’s economy because they disincentivize savings, investment, productivity, job creation, and economic expansion.
  • The nine states without a personal income tax outperformed the nine states with the highest marginal income tax rates and 50-state average in most economic areas from 2004 to 2014.

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