Ahoy, Texas Taxpayers!
Y’all might want to grab your financial life vests because come November 2025, Texans will be voting on a constitutional amendment that could make waves in the state’s tax policy. Authored by Sen. Charles Perry (R-28), this amendment aims to slam the door shut on any future attempts to tax *realized or unrealized capital gains*—whether you’re an individual, an estate, or a trust. Now, Texas already doesn’t tax capital gains (thank the Lone Star State’s allergy to income taxes), but this amendment would lock that policy into the constitution, making it harder for future lawmakers to change course.
This isn’t just some bureaucratic fine print—it’s part of Texas’ long-standing tradition of keeping taxes low and government small. But like any big financial decision, there are pros, cons, and a whole lot of debate. So, let’s chart the course and see what’s at stake.
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Economic Implications: Smooth Sailing or Stormy Waters?
Right now, Texas is a haven for investors and businesses precisely because it doesn’t slap a state tax on capital gains. That means if you sell stocks, property, or other assets at a profit, Uncle Sam still takes his cut, but Texas doesn’t come knocking for more. This has helped fuel the state’s booming economy, attracting high-net-worth individuals and businesses looking for a tax-friendly port.
But here’s the catch: locking this policy into the constitution means future legislatures can’t easily pivot if, say, a recession hits and the state needs new revenue streams. Opponents argue that while the immediate financial hit might seem small (we’re talking an estimated $152,000 in lost franchise tax revenue in 2024), the long-term risks are bigger. What if Texas faces a budget crunch and needs flexibility? Critics say this amendment could tie the state’s hands when it comes to funding schools, roads, or emergency services.
On the flip side, supporters say this is about *certainty*. Investors hate surprises, and knowing Texas won’t suddenly start taxing unrealized gains (yes, that’s a real thing some states are flirting with) could keep the economic engine humming.
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Political Tides: A Conservative Current
Texas politics has always had a strong undercurrent of fiscal conservatism. The state constitution already bans a personal income tax unless voters approve one, and past attempts to introduce wealth taxes have sunk faster than a lead anchor. This amendment is just the latest move in that playbook—making it even harder for future lawmakers to change course.
To overturn this amendment once passed, it would take a two-thirds vote in *both* the House and Senate *plus* voter approval. That’s a high bar, and it’s no accident. Supporters see this as a way to keep Texas’ low-tax identity intact, no matter which way the political winds blow in Austin.
But not everyone’s on board. Some worry that locking in tax policy like this could lead to unintended consequences. What if the economy shifts, or new challenges emerge that require creative solutions? Critics say this amendment could leave Texas stuck in the past, unable to adapt when needed.
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Voter Voyage: Will Texans Hoist the Sail or Drop Anchor?
At the end of the day, this amendment’s fate rests with voters. And if history’s any guide, Texans have a strong track record of voting against new taxes. Past ballot measures limiting taxation have sailed through with ease, suggesting this one could too.
But voter turnout and awareness will be key. Tax policy isn’t exactly beach-read material, and if folks don’t understand what “unrealized gains” even are, they might tune out. Supporters will need to make the case that this is about protecting Texas’ economic edge, while opponents will warn of risks down the road.
One thing’s for sure: this vote will shape Texas’ financial future. Will the state double down on its low-tax brand, or leave the door open for future changes? That’s the billion-dollar question.
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Docking at the Conclusion
As November 2025 approaches, this amendment will spark fierce debate—about economic growth, government flexibility, and Texas’ identity as a low-tax state. Supporters see it as a way to keep the economy thriving, while critics warn it could limit the state’s options in tough times.
One thing’s clear: Texas isn’t just voting on a tax policy tweak. It’s voting on what kind of financial future it wants. Will the state stay the course as a haven for investors, or will it leave itself room to maneuver? Either way, the ripple effects will be felt for years to come.
So, mark your calendars, Texans. This isn’t just another ballot measure—it’s a chance to steer the ship. Land ho!