tax reform
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Tax Reform
Many Texans believe that the current tax system in Texas is unfair. The Texas
state and local tax system fails to provide a stable source of revenue from balanced
resources. There are many different ways to measure the impact of a tax system on
various income groups. The most frequently used method defines taxes as "progressive,"
"regressive" or "proportional," depending on what happens to taxes paid as a percent of
income as income changes. A progressive tax is one where the percentage of income
taken by the tax increases as income increases. A regressive tax works just the opposite,
taking a larger percentage of income as income decreases. A proportionate tax is one
where the percentage remains the same as income goes either up or down. Using the
above definitions, the overall State and local tax structure in Texas is
regressive. Lower income families pay a higher percentage of their income in
taxes than do higher income families. Sales tax is the main reason poor families remain
poor in Texas because they pay up to almost 10% of their income towards the sales tax...