Home >> Research >> Taxes

More Information

Related Topics

• Congressional Proposals Would Extend Tax Breaks for Small Group of Wealthy Texans While Ending Help for Thousands of Working Families
• Who Pays Texas Taxes?
• Replacing Property Taxes with Sales Taxes is the Wrong Answer for Texas Families and Public Schools

Also by Dick Lavine

• Statement: National Task Force Calls for Reform of State Tax and Budget Systems
• Federal "Digital Goods and Services Tax Fairness Act" Would Reduce Revenue and Promote Tax Avoidance
• Time Proves State’s Refusal to Spend Rainy Day Fund Misguided; What We Should Do Now and for the Future

Learning From History

  

Author:
Dick Lavine /(512) 320-0222 x 101

January 28, 2003

Read Full Article >>  

The Texas Legislature met in emergency special session in 1986, when a sudden collapse in oil prices reduced state revenue dramatically. The Legislature responded to the crisis by raising taxes by 6.1 percent, as well as reducing spending by 4.6 percent. This is equivalent to a tax increase of $3.4 billion for the coming 2004-05 fiscal biennium, as well as a spending cut of $2.9 billion from current budget levels. The budget deficit is proportionately larger now than it was then, but a similar approach is needed.