What is the margin tax, and how has it not lived up to the original goal of using it to better fund public education?

What will be an ideal response?

The ideal answer should include:
1. A margin tax is a tax assessed on the marginal income of a business. It is a form of franchise tax, which is a specific tax paid by businesses operating in Texas.
2. The margin tax was created as a result of the 2006 special session called to deal with the specter of voters angry over closed schools.
3. The tax is assessed on the lesser of the following: 70 percent of a business's total revenue; a business's revenue minus its cost of goods sold; or a business's revenue minus employee compensation. Businesses engaged primarily in wholesale or retail trade pay a 0.5 percent tax on that marginal rate. Other businesses pay 1 percent on the margin rate.
4. Sole proprietorships are exempt from the tax, but professional associations, partnerships, and corporations all pay.
5. The margin tax will never generate the income that its advocates promised in 2006. In 2017, the margin tax produced only $3.2 billion in revenue, three-fifths of what it produced in 2012.