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Assignment:
Questions:
1. According to the article, how many U.S. states have no personal income tax? Given Texas does not have a personal income tax, on what sources of revenue does Texas primarily rely to finance public goods and services?
2. The article discusses the implications of Texas' having no state income tax for overall levels of funding for public services, and in particular for education. How does the state compare with other states in terms of per pupil expenditures on education? Besides not having a personal income tax, what other explanations does the article offer for the state's levels of education funding?
3. The article discusses some possible advantages and disadvantages of personal income taxes relative to other forms of taxation. What does the article suggest is one possible downside of income taxes (relative to other types of taxes typically levied by state and local governments)? What does the article suggest is a possible downside to sales taxes (relative to income taxes)?
Readings:
With no state income tax, where does Texas get its money? Curious Texas investigates
By Maria Mendez
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