Report Recommends Texas Revamp Taxes
A new report from a group of economists looking at state tax and budget issues recommends that Texas consider changing its tax structure.
The task force studied six states in detail, including Texas.
Dick Lavine, a senior financial analyst at the Center for Public Policy Priorities, a progressive state policy think tank, says Texas came out looking good in a few sections of the report. But the task force recommends that Texas take a look at broadening its sales tax.
“It’s just not keeping up with the growth of the economy,” Lavine said. “We’re in a service economy in the 21st century, and we really need a sales tax that better reflects the modern economy.”
Lavine says the task force praised Texas for automatically replenishing its Rainy Day Fund as oil and gas revenues come in. But he says the report suggests the Legislature use more of the Rainy Day Fund to invest in education and access to health care.