It is applied on certain transactions, typically on the final sale or rental of personal property, according to a report by the House Research Organization, a nonpartisan source of impartial information on legislation and issues considered by the Texas Legislature. After that, it won't be factored in to the state's revenue, Warren said. Supporters say this will help poorer families most because sales taxes take a higher percentage of their household income. Sales taxes consume about 7 percent of the income earned by the poorest 20 percent of Texas families, according to the HRO report. Families hardest hit by the sales tax are also the least likely to have adequate health insurance, according to the report.
People pay the same amount of sales taxes no matter how much they make.
Every penny helps for the working people.'' Coming up Some critics say taxes shouldn't be reduced until schools, health care and human service programs are fully funded, according the HRO report. They say narrow exceptions to taxation do help some, but they produce little in overall economic benefits. The Associated Press contributed to this report. All rights reserved.