I get that many services you can obtain from other states doesn’t exist in Texas.
But still to fund the police, pave roads etc. can’t be cheap and can’t be all or even funded by feds.
Do they charge a high sales/corporate tax?
In: Economics
Income is not the only way states generate tax revenue. Texas has the [5th highest Property Tax](https://www.fool.com/research/property-tax-rates-by-state/) in the country and the [14th highest Sales Tax](https://taxfoundation.org/wp-content/uploads/2024/02/LOST_Feb24.png).
Now imagine Texas without the taxes. Hello, Alaska. Yes, it’s as dysfunctional as you imagine it to be.
Texas takes in 53% of its revenues from sales tax, and another 20% from other kinds of taxes, user fees, and investments. They also charge taxes on the production of oil and natural gas.
[Detail here from the Comptroller’s Office.](https://comptroller.texas.gov/about/media-center/infographics/2023/bre24-25/)
I live New Hampshire, and we don’t have Income or sales tax. But my property taxes would make most people have a heart attack, my car registration is through the roof. And there are taxes on my business that we didn’t have when we founded it, in a different state. As well as a bunch of others. So they get you in other ways.
By and large governments role in the day to day life of its citizens in Texas is supposed to be smaller than more blue states.
For instance, Minnesota has a larger state legislative body than Texas AND it’s full time compared to a smaller, part time group in Texas.
Neither is solving the world’s problems with your tax dollars, Texas just takes fewer.
Roads in Texas are partially funded by a 3¢ per gallon fuel tax. Of course, that was instituted in the same stroke of legislation that saw three Texas Highway Department transform into the Texas Department of Transportation which deals with all forms of transport (air, rail, road, water).
There are other kinds of taxes out there besides for income tax. For example, property tax and sales tax. There are also things like tolls on roads and bridges.
Texas has high payroll taxes and they charge out of state businesses high fees to operate in TX.
Overall, higher business taxes, property taxes, and energy revenues make up for the lack of state income taxes.
There are three main taxes states can collect: income, property, and sales tax. Most states only collect two of the three. Oregon doesn’t have a sales tax whereas (I believe) Washington doesn’t have income tax. California sucks in that they have all three.
Adding to sales tax and property tax – Texas also levies taxes on mineral extraction, generating tens of billions in revenue for the state
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