Proposing a constitutional amendment prohibiting the imposition of an individual income tax.
If passed, HJR58 would have notable implications on state revenue generation methods and could potentially affect budget allocations for public services. The amendment would bolster Texas's reputation as a low-tax state, which might attract businesses and individuals seeking a favorable tax environment. It would also solidify the current lack of an individual income tax, which has long been a part of Texas's fiscal policy identity. By constitutionally prohibiting such taxes, the state limits future legislative discretion in tax policy.
HJR58 is a joint resolution proposing a significant amendment to the Texas Constitution that prohibits the imposition of an individual income tax. This resolution seeks to amend Section 1(c) of Article VIII, clarifying that the Legislature may tax intangible properties and impose occupation taxes on both individuals and corporations, except municipal entities. However, it explicitly restricts the ability to impose income taxes on individuals, including any income derived from partnership roles or unincorporated businesses.
The proposed amendment is set to be submitted to voters in a ballot election scheduled for November 7, 2017. The ballot will allow citizens to vote for or against the proposition, which emphasizes the need for direct public involvement in determining the state's tax policy framework.
As with any substantial tax-related legislation, there are points of contention surrounding HJR58. Supporters argue that preventing an individual income tax fosters economic growth and financial freedom for Texas residents. Opponents, however, may express concerns about the long-term sustainability of state funding for essential services without a comprehensive tax base that includes individual incomes. There are worries that this amendment could restrict the state's ability to respond to future financial needs adequately.