Regressive tax policy in texas

Critics argue that however Texas tax system is desired, it falls short on funding end, precisely bearing in mind its increasing population growth (The New York Times). The state is doing less constructing roads and highways. Texas cutting taxes may be because of senate and house sorting out competing bills. This will create relief to the low-income earners taxed heavily. Targeted tax relief ought to be a goal since Texas relies heavily on the property and sales taxes thus regressive tax system. However, Americans endorse progressive tax rather than regressive with Goldilocks approaches: too low is uncomfortable and too high is bad. Fair tax request citizen to pay for services offered based on their ability (The Guardian). Tax fairness can imply diverse things; it depends on criterion such as economic competitiveness, efficiency and ease of administration.

Evidence shows that Texas household pays higher tax despite earning less than $136000 per year. This makes Texas top one-fifth earners pay lower tax percentage. Contrary to mutual perception, studies show that Texas major business tax more heavily on the low incomes and less on the high incomes. This is since the regressive tax is meant to hurt the poor (Texas Policy). Business tax in Texas is not exceptional which are even worse. The difference amid consumption taxes such as sale tax and other tax is visible. It is arguable that other issues are far more significant are at stake on the regressive or progressive tax debate. Property tax is also regressive though it is argued that it works like benefits tax (Forbes).

It remains a mystery how the poor pay disproportionately for state government. The ITEP report asserts the tax system is driving inequality. States ought to also expand the sales tax source to tax things bought by rich people whereas dropping tax rates on things poor consumes most. 2nd part Regressive taxation only burdens the poor and middle-class who pays more income compared to wealth people. Institute on taxation and economy policy report indicates that lowermost earners tax is twice more to that of higher earners. The regressively in the state is as a result of heavy reliance on the excise duty, general sales tax and gross receipts taxes (CNNMoney). Regressive is caused by an exemption to things rich people buy. Property tax is also regressive though it is argued that it works like benefits tax.

It remains a mystery how the poor pay disproportionately for state government. The reason why poor pay more is that they spend three-quarters of income on the items subjected to tax sales. Rich spend a sixth of income on taxable income (Houston Chronicle). The population with low income pay the majority of Texas state tax. Americans neither approve low taxes or high taxes but advocate on fair taxes. However, Americans endorse progressive tax rather than regressive with Goldilocks approaches: too low is uncomfortable and too high is bad. Institute on taxation and economy policy report indicates that the lowest earners tax is twice more to that of higher earners. The regressively in the state is as a result of heavy reliance on the excise duty, general sales tax and gross receipts taxes.