Proposing a constitutional amendment prohibiting the imposition of an individual income tax.
Impact
If enacted, SJR45 would significantly impact Texas tax laws by reinforcing the prohibition of individual income taxes. This would amend existing provisions and eliminate any allowances for individual taxation, which some legislators believe is fundamental to maintaining Texas's appeal as a low-tax state. The implications of this amendment suggest that Texas would continue its trajectory of low tax burdens on individuals, potentially influencing more individuals and businesses to relocate to the state due to favorable taxation policies.
Voting
SJR45 is set to be presented to voters as a referendum on November 7, 2017. This process allows constituents to directly engage in the decision-making concerning their tax laws, reflecting a core democratic principle of voter participation in pivotal legislative changes.
Summary
SJR45 is a joint resolution proposing a constitutional amendment that seeks to prohibit the imposition of an individual income tax in the state of Texas. The primary aim of the bill is to solidify the state's tax structure by ensuring that individuals will not be subject to income taxation, a measure that proponents argue will attract residents and businesses alike, fostering a more favorable economic environment. The bill outlines specific amendments to Article VIII of the Texas Constitution, particularly the introduction of Section 24-a, which explicitly states that the legislature cannot impose a tax on individual net incomes, including partnership and unincorporated association income.
Contention
The discussions surrounding SJR45 are expected to spark considerable debate among lawmakers and constituents. Advocates argue that prohibiting an individual income tax is vital for economic growth and personal financial freedom, while critics may express concerns that this could limit state funding for public services, including education and infrastructure. Additionally, there is apprehension regarding the over-reliance on alternative forms of taxation, such as sales taxes, which disproportionately affect lower-income residents.
Proposing a constitutional amendment relating to the appropriation of the net revenue received from the imposition of state sales and use taxes on sporting goods.