Partly it’s because the tax on earnings versus a tax on spending would be different to achieve the same revenue from simple math. Let’s say apples cost $1 and you earn $100. You only buy apples. Suppose the state imposes a 20% income tax. (Assume prices don’t change to shift tax burden for simplicity) You can now only buy 80 apples and the government collects $20 in tax revenue Alternatively suppose the government uses a sales tax of 20%. Now apples cost $1.20 and you can only afford 83.3 apples and the government is only collecting $16.67 in revenue. So to collect the same revenues as the income tax, the sales tax would need too be more than 20%. It would need to be 25%. More on reddit.com

We do not have state income or corporate taxes in Texas, because that would mean wealthy corporations would have to pay taxes. By making property and sales taxes the main source of revenue, the tax burden falls on the poor and middle class. Take a look at the property tax exemptions for wealthy corporations in the state of Texas....They even manage to avoid those. More on reddit.com

Income is not the only way states generate tax revenue. Texas has the 5th highest Property Tax in the country and the 14th highest Sales Tax . More on reddit.com

You betcha Austin more than makes up for the “no income tax” relief. Our property taxes are ridiculously high to start off.

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