However, when comparing Texas with some other state that implemented state
income tax, you will agree with me that the cost of living in Texas is low
in the sense that things are much affordable here in Texas in terms of
education, housing and other things; an average person can easily survive in
Texas than most states with income tax. Most people are able to survive
here because of there is no such taxes cutting on their monthly income thereby
making the standard of living obtainable by most people.
Also,
Texas should not implement state income tax because of the population
growth (migration pattern) in the sense that most states with no
income tax have a big competitive advantage over their taxing counterparts.
That is most of those states had above-average population growth.
Nevada grew by the largest percentage of any state, while Texas had the biggest
raw population gain over the decade. This shows that lots of people might
prefer to live in a tax free state than a state with state income tax as well
as high standard of living.
Last but not the least, the income of Texans is very low having the
minimum wage of $7.25 per hour when compared to states who pay state income tax
like Massachusetts having a minimum wage of $15 per hour. An average Texan
with a family, working 40 hours a week and receives the minimum wage might
not be able to afford extra tax after having the Federal income tax, social
security tax and Medicare deducted from his income. In other words, the
State's minimum wage has to increase for it to levy state tax.
In conclusion, all
other things being equal, most people might gravitate to states with no
income tax having an affordable standard of living despite the low income. If
these trend continues, then high-tax states might find themselves facing
significant difficulty in attracting the people they need in order to promote
growth