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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.


  • 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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