The Republican-controlled Legislature is backing down from a long-term plan to lower state income taxes.
Legislators approved a bill to repeal the next automatic cut in state income taxes that would have dropped the rate from 5 percent to 4.78 percent. The bill was overwhelming approved in the House last week and is headed for a second vote in the Senate. SB170 removes the automatic trigger for the reduction in the income tax. Several states, including Texas, don’t have a state income tax.