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