Texas

This week Hawaiʻi lawmakers reached a compromise to balance the state budget and maintain tax cuts for most residents by, in part, raising rates on the richest Hawaiians. Other states are working to generate revenue from their wealthiest residents, too.

Missouri lawmakers passed legislation that will have residents vote on a proposal at the ballot box. The ask: for them to pay more in sales taxes to offset cuts – and the possible elimination – of the state's individual income tax, which makes up nearly two-thirds of Missouri’s general fund.

State legislative sessions are wrapping up, and final tax and budget packages are making their way to governors’ desks.

California Gov. Gavin Newsom went to Texas recently and claimed: “Texas taxes poor folks more than we tax our richest." He’s right.

2025 saw an intensification of state and local tax fights across the country, as well as growing experimentation with local-option taxes, levies, fees, and tourism taxes aimed at keeping budgets afloat while also navigating political constraints imposed by state legislatures.

As we kick off a new year, several states are facing revenue shortfalls. Some lawmakers are approaching the challenge with sustainable and equitable solutions.

The income groups paying the highest tax rates in Texas are disproportionately Hispanic and Black, whereas the lowest-taxed group (the wealthiest 5%) is predominantly white. Read more.

This proposal would disrupt the state’s housing market and jeopardize local revenues while doing very little to help workers and families struggling to pay their property tax bills – just as Prop 13 did in California.