Saturday, November 2, 2019

Confusion on State Proposition 4

It is late to clarify this proposition, but there is so much misinformation on this subject. Let me explain Prop 4 very simply.

The current Texas Constitution ALLOWS the legislature to pass a law instituting an income tax with a simple 50+% majority. The tax does NOT take effect until a majority of registered voters approve in a statewide referendum.

Prop 4 eliminates the current wording in Sec. 24 of Article VIII, above, and replaces it with the ballot wording. "The legislature may not impose a tax on the net income of individuals ....."

Passing prop 4 makes it a constitutional amendment.

For this constitutional amendment to be over turned requires 2/3 approval of both state chambers to place another new amendment on the ballot. That new amendment would likely require a simple majority to pass in order to repeal Prop 4 and add language allowing a income tax.

Thus, it is clear that the current constitution does not PROHIBIT a state income tax and if Prop 4 passes it will not PROHIBIT a state income tax. It will just require another constitutional amendment, which requires 2/3 approval by the legislature, to be placed on the ballot for voter’s approval/disapproval.

Bottom line - Prop 4 raises the bar from simple majority to 2/3 majority for the legislature before a proposed tax can be placed on the ballot.

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