According to a new report from the Center on Budget and Policy Priorities, Texas is among the states with the highest income inequality. Our state ranks 10th in the country, with its richest residents— the top five percent of households— having average incomes 15 times as large as the bottom 20 percent of households and five times as large as the middle 20 percent of households. The top five percent of Texas households receive 20 percent of the state’s income, even without counting capital gains earnings from stocks and other investments.
To reduce income inequality Tom propose the following:
- Increase the state minimum wage to $15 an hour;
- Broaden the sales tax base to include more services consumed by high-income Texans — examples include placing a tax on investment counseling, on stock and bond purchases, transfers & sales, on country club memberships;
- Repealing our state’s anti-union, right-to-work for less laws. We need to make it easier to join unions not harder. Unions are the only institution strong enough to take on the corporations;
- We need to scrap our state’s business franchise tax system that barely collects 5% of state revenues and replace it with a Business Income Tax. Our goal should be to double the amount of revenue collected from Texas corporations.