Explain the major sources of revenue for the state and local governments in Texas. How is the state's tax system regressive? Should the state adopt a personal income tax? Why or why not?

What will be an ideal response?

Answer: An ideal response will:
1. Identify and explain sales taxes, margins tax, property taxes, sin taxes, and the state lottery.
2. Explain how the poorest Texans pay a significantly larger share of their incomes in taxes than do the richest Texans.
3. Explain how the different taxes used by Texas are regressive.
4. State and defend a position regarding a personal income tax.