Pro-Growth, Pro-investment, PRO-TAXPAYER
In order to continue to build our diverse economy, we're going to need to make investments, in education, in transportation, our physical infrastructure, and healthcare. I'm not going to skirt the truth: these programs will require us to raise revenues and make some upfront investments. But in the long run, we will have minimized our costs (like higher premiums and uncompensated medical care and incarceration rates) and created a better world for our families.
But that doesn't mean that taxes should be inefficient and stop us from growing
Whenever we need to raise revenues, we should do so in an efficient way. What do I mean by that?
- Our tax system should promote the formation of new, innovative small businesses
- Our tax system should support the expansion of business and the hiring of more workers
- Our tax system should not put the burden of our public goods on those with the least ability to pay
- Our tax system should not force you to pay a tax when you do not have the cash to pay it
- Our tax system should not tax savings
We need an efficient tax system that supports our local community and economy while allowing us to make the necessary investments to make Texas even better. It's all about growing opportunity in our economy.
So what does that mean?
Even conservatives feel that the Texas margins tax is one of the worst in the nation. Let's reform the margins tax so that businesses pay a tax on their true cashflows - without worrying about how to classify expenses or profits.
A state wage tax would allow us to support small businesses by helping low wage employees get more for their buck with a state earned income tax credit, as well as providing support to those businesses that choose to hire them. We would also help those with the least ability to pay save more money to invest in their own new businesses as well as remove another accounting burden on small businesses. Importantly, a state wage tax would not tax savings.
When your neighborhood becomes better - better roads, better amenities, better schools - your property values go up. And when your property values go up, it means your taxes go up. Why should we penalize Texans for building and improving their neighborhoods? Honestly, I think it makes more sense to tax bullets, like alcohol and cigarettes.
Let's find a way to maintain local control, while not discouraging development.
But is there a tax system that does all this?
Well, if you're really nerdy (like me), check out the X-tax, a progressive consumption tax supported by the American Enterprise Institute.