People like it, but it is regressive. New version taxes profits more heavily than capital investment. Lack elasticity and restrict flexibility of government. Texas hedges its bets by having a variety of taxes. New sources of wealth are not bearing their fair share of the tax burden.
Yields depend heavily upon federal bond yields.
The major source of revenue for local units. Tax reform has not reached Texas. The current systems disproportionately burdens low income families and business, and few of any attempts have been made to reform the tax system so it better fits with the way wealth is generated in the state. The courts have almost ruined the Texas franchise tax as a dependable source of revenue, and taxes which are aimed at suppressing drug activity turned out to be unconstitutional. Tax reform was the number one item on the 1997 legislative agenda.