Proposing a constitutional amendment prohibiting the imposition of an individual net worth or wealth tax.
If passed, SJR91 would establish a clear constitutional barrier against any future attempts to implement a wealth tax in Texas. This constitutional protection would imply that state legislators would be unable to create laws that would impose such taxes, thereby influencing future fiscal policies. Proponents of the bill argue that it will safeguard Texas residents from potential wealth-based taxation, perpetuating the state's tradition of low taxation and promoting economic freedom.
SJR91 is a joint resolution proposing an amendment to the Texas Constitution that explicitly prohibits the imposition of an individual net worth or wealth tax. The resolution seeks to amend Article VIII of the Texas Constitution by adding a new section that states the legislature cannot levy a tax based on the wealth or net worth of individuals or families. This includes any tax determined by calculating the difference between an individual's assets and liabilities. The proposed amendment, if approved, will be submitted to voters during an election scheduled for November 7, 2023.
The sentiment surrounding SJR91 appears to be primarily supportive among conservative legislators and advocates for fiscal restraint. Supporters view the bill as a necessary measure to prevent excessive taxation, ensuring that Texas remains an attractive place for individuals and families to reside and invest. Conversely, some detractors warn that a lack of a wealth tax could limit the state’s ability to generate revenue from those with substantial wealth, potentially affecting public services and infrastructure funding in the long run.
Notable points of contention revolve around the implications of preventing a wealth tax in terms of equity in taxation. Critics of the resolution argue that it may disproportionately benefit wealthier individuals while restricting the state's ability to address income inequality through a comprehensive tax policy. The debate encapsulates broader discussions about the role of taxation in social equity and the fiscal responsibilities of the state to its diverse population, evidencing a clear divide between economic conservatism and progressive taxation ideals.