Option No.1: Fiscal Policy - Texas Tax System
First of all, both options for this discussion are very interesting but I chose option number one to study and analyze because I am always curious about taxation. I always ask myself out of curiosity about why there are differences in tax implementation and system in America specifically in each State? For me to better understand this topic, I have researched about the terminologies, the process and the ideas that go along with this subject matter. What is Fiscal Policy?“It refers to the central government's policy on lowering or raising taxes or increasing or decreasing public expenditure in order to stimulate or depress aggregate demand”(Bloomsbury Business Library). This means the ability
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Notice that Texas State does not have state income tax? It is because their revenues are coming from other tax categories like sales tax and property tax. “When the state increases its reliance on sales taxes to offset the holes punched into the budget by corporate, this increases the overall tax burden on the poor and the working-class”(Dollars and Sense 12). Compared to other states like that of California which implements progressive tax system (collects more revenues from state income tax), Texas does not levy on state income tax. “The lack of an income tax means that the Tennessee State government relies to a large degree on sales taxes to raise revenues”(Dollars and Sense 12). Texas, like Tennessee, belongs to regressive tax states but Texas gets more of its revenue through property tax rather than sales tax. “Depending on the methods used and what is included, Texas sometimes looks pretty good on the surface, with a lower overall burden than many places”(Perryman 30). In my personal opinion, I think Texas should stick to its present tax system and I believe that other states should adopt what Texas tax system have. “Many states have income taxes, which Texas, of course, doesn’t have”(Perryman 30). Although regressive tax system may seem unfair to some but if looking at the big concept it is still fair because as per my experience Texas wage bracket
In Erica Grieder’s book, she points out that Texas has a governing philosophy called the The Texas Model where it calls for low taxes and low services (23). It can be said that this would not be deemed helpful for the people, since many require the public services of the government, especially in the fields of education and health care. However, Grieder states that statistics show otherwise, the model is working for Texas. Apparently, Texas is highly averse to taxes, part of the aversion due to the limits in taxing authority of the state itself, which also helps to create a business-friendly state. Due to the
Though the Texas' economy has diversified in recent decades, the state's abundant oil and gas resources remain a valuable asset - especially when prices for those commodities are high - that most other states lack. Even if it were possible for other states to replicate these features, the fact that so many Texans have failed to benefit from them - with poverty, low-wage jobs and lack of health insurance all above the national average - makes Texas a less-than-desirable model to
All tax revenue in the state of Texas help fund state programs available. Sin tax is no different. ‘Sin Tax’ is a tax on items that are considered harmful, like tobacco, alcohol, and gambling. In Texas, casinos are illegal so most revenue from sin taxes are based off the sale of tobacco products and alcohol. Texas also has placed sin taxes on places of business that host live nude shows and allow alcohol consumption at the business. This specific sin tax has been nicknamed the ‘pole tax’ for obvious reasons.
Texas is considered a very diverse and unique state in many different aspects. It is the second largest state with more than twenty-six million people residing. People all over the state live in a variety of environments, cities, suburbs, rural areas, you name it. Of course though, like in everything else, there are always both positive and negative things. However, despite the fact that Texas have very high poverty rates and it has the second highest income inequality, Texas is a very interesting state and it has a lot of things that are worth learning about. I learned some things about Texas politics that I thought were very interesting. These topics include the State Constitution and the legislature.
Given that, Texas had to fight with the Confederacy when the Civil War began. Since the Confederacy lost, all the states who fought on the side of the Confederacy had to go under a period of reconstruction. This period was intended to help bring the states back to a working state and to help with the now freed slaves. This was not in Texas’s favor. Since Texas didn’t really depend on slavery, its economy bounced back pretty fast but still had to go through a reconstruction period. This ended up making the government centralized. The governor had a lot of power and didn’t use it wisely. When this period ended, and it was time to write a new constitution, Texas made one where the governor had extremely limited power and that the government was comprised of a plural executive.
Texas is a state built on a majority of minority groups. The larger groups are made up of an overflowing amount of Hispanic and Asian citizens whose population continues to grow. As these minority groups continue to grow and expand so does the diversity which each group carries and creates. These groups make up a large amount of the state and endow it with an immense amount of liberal belief. The state itself was created in a very conservative manner and with more than one group of people the state can progress into a more democratic ideal. With four of the United States’ largest cities in Texas and those
Texas is a state that prefers a limited style of government, because there is a high distrust in the government’s ability to create laws
Texas might be a small-government state, but it is a proud and stubbornly independent one. With the 84th legislature imposing state will on local policies, politicians of all sorts are unhappy. Regardless, there are arguments both for and against local control, and overall, they have the public’s best interests at heart.
The state of Texas has a government that is broken up in a way to appeal to the public. The question of trusting the government is a common thing for some people. There could be many reasons for this but that’s not important. The government is here to keep control and needs to be trusted by the people. To prevent this distrust, the government is broke up into multiple different levels. These levels are made to aid public needs and separate major powers. The Texas legislature is the main level.
The counties in Texas have an odd relationship with the state government and the Texas constitution. The counties are under the state and they are required to handle duties that the state rants them. However, the counties are strongly against the involvement of the state government. Brown (2014) states that “both county officials and county residents see them as local governments and resent any state ‘interference’” (p.110). The counties are charged with the responsibilities of collecting taxes on both urban and rural property, issues state automobile licenses, enforce state laws, register voters, conduct elections, and help administer justice. The counties, along with state and federal governments, “conducts health and welfare programs, maintains
The government of the state of Texas is a difficult and complicated institution that is composed of many different levels. The question comes in to everyone's mind at one time or another whether or not to trust the government. It could be that people believe that the officials will take advantage of their power, or simply people don't like the idea of being controlled by someone who is not a family member or friend. To avoid this centralized power, the government is divided into stages and this is a reasonable ground for trusting the government. Government runs this state and it does deserve to be trusted.
As we all know, Texas is a conservative state, meaning it holds to its traditional beliefs, laws, and values; it also is very cautious about any kind of change, commonly related to politics or religion. This, unquestionably makes me think Texas voters would not support this idea, making it impossible to happen. Of course, this is not an easy decision, principally because it involves modifying the Texas Constitution, yet I consider this to be a “necessary evil,” meaning that the idea might not be supported or accepted by everyone, but still might be imperative for the development of not only our state but our society.
The Texas Constitution was amended in 1993, during Governor William P. Clements’ second administration, to prohibit a state income tax. Therefore, any such proposal would have serious difficulties passing both chambers of the legislature and then it would be subject to ratification through a statewide referendum. Texas’ lack of a state income tax seems to have enhanced its economy vitality with this approach. It also lacks a corporate income tax, which is not prohibited by the Constitution. Texas is one of seven
This policy involves increasing government spending and cutting taxes, in order to spur economic output. But if the government decides they need to do the opposite the government may adopt concretionary fiscal policy. This involves a reduction in government spending and an increase in taxes when faced with an overheating economy. But these actions, may have other effects in the economy. For instance, and expansionary fiscal policy may lead to the crowding out of investment.
The state of Texas does not have a state income tax. States collect taxes to generate revenue to operate. Texas collects the necessary funds from property and sales taxes. As of 2014, there are only seven states that do not collect an individual income tax. The other six states are Alaska, Florida, Nevada, South Dakota, Washington and Wyoming. Tennessee and New Hampshire have a limited tax on individuals, taxing only dividends and interest income. The lack of individual income tax is protected by Article 8 of the Texas State Constitution, which limits potential tax in the future as well. Texas funds itself through a 6.25% sales tax, taxes on motor vehicle sales and fuel, and taxes and royalties on oil and natural-gas production. Texas has