Texans vote on state income tax ban

Texans will consider ten propositions on the ballot for state constitutional amendments including Proposition 4 which would ban the voter referendum currently needed to impose a state income tax, including a tax on an individual’s share of partnership and unincorporated associate income.

According to a focus report by the House Research Organization, a nonpartisan independent department of the Texas House of Representatives, supporters claim, “the amendment would help keep the Texas economy strong by ensuring that the state could not impose an individual income tax, sending a message that Texas was committed to maintaining a business-friendly, low-tax economic environment.”

“Prohibiting an income tax would safeguard the state’s continued prosperity, as income and capital accumulation are critical to economic growth. The introduction of an individual income tax would discourage savings, investment, productivity, job creation, and economic growth in the state. It also would increase the size of the state government at the expense of individual liberty and result in higher costs to the taxpayer. Constitutionally prohibiting an income tax would help prevent this growth in state bureaucracy.”

Mayor Travis Ransom of Atlanta says of the proposition, “I’m voting for the constitutional amendment to ban a state income tax. To me, income taxes are against the American dream. We shouldn’t tax a person’s productivity.”

Over 70% of Texans support a ban on income tax.

As the law stands, an income tax can be imposed but only by referendum which requires a simple majority vote (50%+1) in each legislative chamber before it is put before voters. The HRO says the proposition’s critics contend that an amendment is unnecessary, “The Texas Constitution already includes a high bar for imposing a personal income tax by requiring that it be approved by a majority of voters.”

In a house joint resolution, its sponsors asserted “a permanent ban on the implementation of an individual income tax in the state of Texas through a constitutional amendment.”

However, Proposition 4 would only replace the referendum requirement with a ban on enacting an income tax on individuals. Removing the ban in the future would require a constitutional amendment, which needs a twothirds vote in each legislative chamber and voter approval. Some critics point to the definition for the word “individual” as lacking and that it fails to specify that the income tax prohibition refers exclusively to natural persons. Thus, inviting businesses to reap tax exemption status.

According to the Texas State Teacher’s Association, “If Texas voters ever were to become convinced that an income tax were necessary, the Bullock amendment provides that at least two-thirds of net revenue collected from the tax would be dedicated to reducing school property tax rates and the remainder to education funding. If Proposition 4 passes, it will wipe out the dedication to education and property tax relief.”

The Bullock amendment was passed in 1993 and prohibited an income tax on “natural persons,” including a person’s share of income from a business partnership. In 2006, lawmakers expanded the business tax to include partnerships which led to a lawsuit in which it claimed the new law is an income tax. The Texas Supreme Court ruled in 2011 that it was not an income tax because it was levied against the partnership, not the partners.

Additionally, TSTA says, “Any future attempt to create an income tax would require a new constitutional amendment that would first have to be approved by two-thirds of the Texas House and state Senate, and legislators would not have to use the money on education. They could designate the revenue for any purpose, including tax breaks for wealthy corporations.”

Early voting began Monday, Oct 21 and ends Friday, Nov.

1. Early voting hours are 8.am to 5 pm. Election day is Tuesday, Nov. 5 and polls will be open 7 a.m. to 7 p.m.

A sample ballot can be found on the county’s website www.co.cass.tx.us.