We must continually fact check myths dispelled about the state income tax, especially falsehoods perpetuated by those who benefit most from the current tax structure. Below are the most common myths.

The fact is that if the Governor told any group in the state that he had a plan to lower school property taxes 90 percent, increase education funding for schools so that they can hire motivated and certified teachers teaching a rigorous curriculum in state of the art classrooms, and that his plan would also deliver net tax cuts to 70 percent of Texans, that Governor would be the most popular Governor in state history.

The fact is that a state income tax does have popular support, with 55 percent of respondents showing support in a poll by the Governor’s own pollsters, Baselice and Associates. The fact is that it is time to openly and honestly discuss a state income tax for the future of our state and children.

1. An Income Tax is Banned by the Texas Constitution. NOT TRUE. An income tax is already allowed by the Bullock Amendment in Article 8, Section 24 of the Constitution. The Bullock Amendment states that an income tax can be enacted by a vote of the people, two-thirds of revenue raised has to be dedicated to property tax relief, and the remaining revenue has to be dedicated to education.

2. An Income Tax Requires A Super-Majority Vote in the Legislature. NOT TRUE. In order to send an income tax to the voters for approval, the Legislature must follow the same process as for any other bill. It does not require a super-majority vote in the Legislature.

3. If an Income Tax is Passed the Legislature will just keep increasing the rates. NOT TRUE. If approved by the voters, an income tax would be the only state tax that allows voters to control the rate. According to the Bullock Amendment in the Texas Constitution, any increase to the rate requires approval by the voters. Bullock knew taxpayers would demand protection - and we've got it in our state constitution.

4. An Income Tax is Bad For Business. NOT TRUE. 43 states in the nation have an income tax. If the absence of a state income tax was such an attraction, nearly all business expansions and relocations would be coming to Texas. But Michigan and Ohio have repeatedly won the Governor's Cup for the most business expansions and they both have an income tax. For a business, two areas are more important than all others: infrastructure and education. Being 50th in the nation in high school graduates is bad for business. An income tax is not.

5. The Lottery takes care of paying for education. NOT TRUE. The State Lottery is totally dedicated to paying for public education. But the approximately $1 billion in Lottery revenue pays for only six school days of the $30 billion state education budget.

6. An Income Tax Will be Just Added to the Other Taxes We Have to Pay. NOT TRUE. The Bullock Amendment dedicates two-thirds of income tax revenue to property tax relief, which could reduce school property taxes to as low as 15 cents! An income tax , combined with property tax cuts, would create tax savings for 70% of Texas families.

7. States that suffered some of the worst budget shortfalls in 2003 were those with income taxes. NOT TRUE. According to the American Legislative Exchange Council, the states that suffered the largest state budget deficits in 2003 were those states with the largest populations. Of the top ten states with the largest budget deficits (California, New York, Texas, New Jersey, Minnesota, Illinois, Ohio, Massachusetts, Florida, and Washington), three were states without an income tax (Texas, Florida, and Washington). The fact is that states without an income tax were actually overrepresented among the states with the largest budget shortfalls in 2003.

HOW WOULD A STATE INCOME TAX WORK?

The guidelines for a state income tax are in Article 24, Section 8 of the Texas Constitution. If Texas enacts a state income tax, the Texas Constitution requires that:

1. An income tax to be approved by a vote of the people.
2. Two-thirds of revenue raised has to be dedicated to property tax relief.
3. The remaining net revenue has to be dedicated to education.
4. Any increase in the rate also has to be approved by a majority of the voters.

Every child in the state deserves an excellent education. After two-thirds of the revenue is dedicated to property tax relief, the remaining revenue of a state income tax has to be dedicated to education. A state income tax in Texas would raise the revenue needed to provide for quality teachers, early education and great schools.

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