Texas Tax System Heavily Burdens Poor Residents

During his presidential campaign announcement speech last week, Texas Gov. Rick Perry lamented the "injustice" that nearly half of all Americans -- the poorest half -- "don't even pay any income tax." But in Texas, the tax burden is disproportionately shouldered by those families living below the poverty line, newly-released data from the Census Bureau show.

While Texas is generally considered a low-tax state since it doesn't impose a personal income tax, a new analysis by the Institute on Taxation and Economic Policy finds the state's tax laws actually "redistribute income away from ordinary families and towards the richest Texans."

Taxes paid by the poorest 20 percent of Texas households -- those with incomes averaging $11,200 a year -- are actually the fifth highest in the nation, even though none of those households make enough money to owe federal income tax.

"With poverty rates on the rise, the Texas tax system is actually pushing families further into poverty," said Meg Wiehe, ITEP's State Tax Policy Director.

According to the Tax Policy Center, three-fourths of the 46 percent of U.S. households that pay no federal income tax earn $30,000 or less per year. But those families pay the same share of gasoline taxes, payroll taxes, excise taxes, property and sales taxes as the wealthy, so they end up paying the government a larger percentage of their incomes.

Texas, in particular, is "extremely imbalanced" in its reliance on sales and property taxes, the report concludes. Even without having to pay income tax, the poorest fifth of Texans ended up paying about 12 percent of their income in taxes in 2009, ITEP reports. The wealthiest 1 percent of Texans paid only 3 percent of their income in state and local taxes.

Still, Perry appears concerned that the rich are carrying too much of the nation's financial burden.

"Spreading the wealth punishes success," he said during his announcement speech on Saturday, "while setting America on a course to greater dependency on government."

The distribution of wealth in America at the end of 2009 was the most unequal it's ever been, with the wealthiest 1 percent of U.S. households having 225 times the net worth of the median household.

A Perry spokesperson did not immediately return requests for comment Friday.

Comments

[johndcky]

10:01 AM on 08/31/2011

The flat tax system insures that everyone will pay some, others will pay more according to how much they spend. The system that Texas uses was actually put into place by our friends from the Democrat party as well as the Democrat governor. You can twist the figures around any way that you wish, but the fact remains, Texas has had a budget surplus for the past 6 years under Perry. No other governor can make that claim, as well as the highest employment levels. Those in the $11,200 in most cases, do not pay a property tax - simply because they do not own real property, they usually are renters. If they own or drive an automobile, they will pay not only a state tax, but also a Federal tax, which is higher and was also instituted by Democrats. So it comes down to a base tax rate of 6.25% to 8.25% depending upon where they live; most food items are exempt as well as medications and physician's fees.

This is just another Perry bashing article by the leftist, so that they can attempt to quell their fears that Perry will probably be the next President. Never mind that the person who is presently living in the White House has done more damage to this country, than anyone in the history of the Presidency!

Why don't you leftist twist some of Obama's historical deficit, historical unemployment, as well as his questionable background?

[Saltheplumber]

08:46 PM on 08/26/2011

"He'll slap you on the back with one hand, and pick your pocket with the other"...

[Hell Yeah Im Uhmercan]

08:05 PM on 08/26/2011

To Republicans, this means a "job well done".

[Gary Strawley]

04:14 AM on 08/25/2011

ITS THE GOP AGAINST THE MIDDLE CLASS IF U ARE NOT RICH VOTE AGAINST YOUR SELF! IT IS THE ONLY WAY U CAN PAY!! AND HELP THE RICH!!!

[Gary Strawley]

03:42 AM on 08/25/2011

Why would u think anything other then the gop against the poor! That is their JOB!!!

[Red45]

03:52 PM on 08/24/2011

So, he thinks it's an injustice that the poorest of the poor don't pay their fair share of taxes. WTF??? Does he think we don't know that the wealthiest of the wealthy pay little to no taxes and, most certainly, not a fair share! The richest of the rich are on the dole waaaaay more than the poor in this country. How vulgar can he get??

[Jessie Laurence]

01:16 PM on 08/24/2011

"Spreading the wealth punishes success"

Philippians 2:4
Let each of you look not only to his own interests, but also to the interests of others.

Come Rick Perry, read the Bible or something.

[Hell Yeah Im Uhmercan]

08:06 PM on 08/26/2011

He stopped reading it at "an eye for an eye".

[Eugene Berkovich]

05:16 PM on 08/23/2011

My problem is the only success the rich have had in the last decade was making themselves rich. They did not have much success creating jobs, they did not have much success growing our economy, they did not have much success trickling the crumbs from their table down to the poor.

I do not think by raising taxes on the rich we punish success. We just temper the income inequality. And allow the government funds to balance budget and start real job-creation by by starting a large wave of public works projects.

[Red45]

03:55 PM on 08/24/2011

Agree.  f+f

[SuburbiaAwaken]

05:11 PM on 08/23/2011

High poverty rates and a gazillion burger kings, and viola you have Rick Perry's Texas.

[loyalist1]

04:27 PM on 08/23/2011

Texans are really stupid. That's why they have never come up with an intelligent endeavor, like a space program or something.

[John Lamoreaux]

04:42 PM on 08/27/2011

You may be right.... Or it may be that these creatures are a devilish incarnation of the Diabolic Intelligence itself. If you read the comments here, you'll learn that said creatures have been engaged in a four-hundred-year plan to sow galactic misery -- first putting an end to all life in the solar system, and them using evil robots to force dear-old granny to eat cat food, so as she'll die miserably, with only her Clapper to keep her company. Did I mention they have tails?

[loyalist1]

07:56 PM on 08/27/2011

You did not catch the irony. Obviously.

[pbr56]

10:53 AM on 08/22/2011

I guess according to rick perry, it is wealth redistribution to have the rich pay the same percent in taxes as the poor. Maybe this should be on one of his election signs.

[wallawizard]

10:56 AM on 08/22/2011

Poor will have to pay sales tax, gas tax and in some cases property taxes. How is this different from other states??? No state has a different rate of sales tax based on someones income.

[Kenneth Dunlap]

01:16 PM on 08/23/2011

The sales taxes and property taxes are targeted in many states. In order to remove some of the burden from the poor, many states do not tax food, diapers, etc.. This allows the poorer people to have less of a burden.

[Djay0252]

10:26 AM on 08/22/2011

This is the Republican way of life that Perry wants to impose on the entire country. If that is what you want then by all means vote for him.

[rgilley]

09:11 AM on 08/22/2011

"Texas Tax System Heavily Burdens Poor Residents "

Texas has always made its economy work on the backs of the poor and disadvantaged. It's the Republican way and ideology protect the rich at all cost and in any way necessary.

[roydoe]

09:13 AM on 08/22/2011

remember that Texas was part of the traitorous Confederacy.

[becky bradshaw]

09:37 AM on 08/22/2011

Texas was on the frontier when the Civil War started, The total population was about a half million, including many citizens who considered themselves citizens of Mexico or the Indian nation. (http://www.census.gov/dmd/www/resapport/states/texas.pdf)

Whether Texas was a Confederate state or not seems marginally relevant to this conversation.

[mazzo]

09:49 PM on 08/21/2011

...in other news, Kim Kardashian spent MILLIONS on her wedding. But don't let that get you down, the poor can always watch what the rich are doing on those big television screens at Cosco. wink wink

[ScottV]

10:27 AM on 08/22/2011

Assuming they will be able to afford the membership dues going forward...

[rgilley]

07:51 PM on 08/23/2011

And in still other news Mitt Romney is tearing down his huge mansion because it doesn't fit his needs. he will be building a new bigger more elitist and elaborate mansion with the money he is going to save his corporate donors when he is elected Furur of teh new Fascist America.

"Upon assuming state power, ... pursued an agenda not unlike Mussolini's. They crushed organized labor and eradicated all elections, opposition parties, and independent publications. " (Paerrenti p347)
http://www.thirdworldtraveler.com/Fascism/Fascism_MParenti_CN.html

Sound familiar? walker, Kasich, Snyder anyone?

[meg8907]

09:41 PM on 08/21/2011

It isn't "Perry's tax system." It's the Texas state system that's been as it is for decades. He hasn't changed it and doesn't have the power to.

[becky bradshaw]

09:47 PM on 08/21/2011

Interesting, when anything in Texas is good, Perry wants to take credit, and when something is bad in Texas, it is not Perry's fault.

Actually, I agree with you. Perry has done almost nothing in his time as Texas Governor, so he should not be blamed/credited for almost anything.

[Old Jarhead]

10:01 PM on 08/21/2011

Exactly! The way the constitution of the state of TX is written, the true power lies with the Lt. Governor, who is president of the TX senate, and sets the legislative agenda for the entire session. Perry, like Bush, Ann Richards, and almost every other governor before them, is more figurehead than administrator.

[rgilley]

09:13 AM on 08/22/2011

What's bad in Texas is it's steady unending trend toward Fascism and rule by the richest Oligarchs of oil. And THAT is what not only Perry but All Republicans have in mind for America.

[ScottV]

10:28 AM on 08/22/2011

It's his now just like the national economy is Obama's know. Suck it up and deal with it.