WICHITA FALLS, Texas (KAUZ) – Texas elections are approaching fast, and two upcoming constitutional amendments could permanently block certain taxes from ever being created.
Propositions 2 and 6 aim to prohibit future state laws that would allow politicians to impose taxes on capital gains and securities transactions.
Proposition 2 would ban taxes on stocks sold, real estate sales, or any other form of capital gains for individuals. While Texas currently does not collect these taxes, this amendment would prevent the state from ever doing so in the future.
Dr. Steve Garrison, a professor of political science at Midwestern State University, said the proposal could divide voters.
“If you’re somebody that doesn’t have a lot of means, you look at the wealthy people and say, well, they’re accumulating wealth and not having to pay taxes. Why shouldn’t they pay into the upkeep of schools and things along those lines but on the other side, well, they’re investments, but I haven’t actually tapped out the investments yet, so why should I be paying taxes on it?” Garrison said.
Proposition 6 would similarly ban taxes on stock trading not only for individuals but also for companies.
Garrison said there may be a specific reason behind the proposal.
“There has been some suggestions about opening a stock market in the state of Texas. This would then remove a tax burden on the people actually doing the trading. So this would be aimed more at people working in investment planning and stock trading and things along those lines,” Garrison said.
According to the League of Women Voters, Proposition 6 could also add protection for retirement funds such as 401(k)s and IRAs, since those accounts are based on stock trading and would face added costs if a tax were ever introduced.
Polls open Nov. 4, to learn more about the remaining propositions, click here.
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