Advantages And Disadvantages Of No State Income Tax

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Texas is one of the seven states that have no state income tax. This means the state does not impose an additional state income taxes on someone’s earnings, but there is still a federal income tax. While many claim this is beneficial to all of Texas citizens and promotes population growth others find it disadvantaging. Their is many disadvantages and advantages to not having a state income tax.

The disadvantages of having no state income is that everything around people increases in price. Just because the state does not receive a percent from worker’s earnings, does not mean they do not find other ways to tax them. As a result the state imposes taxes through other ways to receive money. Their is higher property taxes, higher than average expenses, and less state funding. A study by Lincoln Institute of Land Policy says “Effective property tax rates on owner-occupied housing in Texas are the fourth-highest in the United States and about 58 percent above the median rate for all state.” (Aycock, Whitehouse, McKenzie, 2016) …show more content…

There is less state funding for local community, educational, and healthcare programs.
“Texas has no income tax and no state property tax, so our schools depend heavily on local property taxes”( 2nd work c). Since this is the main way to fund these programs local property taxes are higher. This affects children who attend Texas’ public schools, a state income tax makes it easier to gather money to fund children's public

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