While many Lone Star State business organizations tout Texas' tax climate when pitching corporate relocations, those same tax policies are among the worst in the nation when boiled down to the family level, according to a new report from theInstitute on Taxation and Economic Policy.
Texas has the third-most regressive tax structure in the country, according to the report. A regressive tax structure is one that taxes lower-income individuals' earnings more heavily than higher-income individuals' earnings. In terms of regressiveness, Texas is beaten only by Washington State and Florida.
.... " In recent years, anti-tax advocates have pushed for tax policies that would reduce tax rates for the wealthy and businesses," reads the report."There are clear problems with this agenda. Foremost, many anti-tax proposals would make regressive tax structures even worse in part because they often rely on hiking taxes that fall more heavily on poor and middle-income families to pay for tax cuts at the top."