AUSTIN, Texas - In a Texas Senate race defined by the rising cost of everyday life, Ken Paxton and James Talarico are offering voters different approaches to affordability. Paxton is proposing new tax deductions, an expanded Child Tax Credit and permanent "Trump Accounts," while Talarico is calling for higher wages, expanded tax credits and tougher action against corporations he says are contributing to higher prices.
Why you should care:
Consumer prices rose 3.4% nationally in the 12 months ending in August, according to the U.S. Bureau of Labor Statistics. The gasoline index rose 27.4%, fuel oil increased 52% and food prices rose 2.7%. Apparel prices increased 3.6%.
Meanwhile, the average price for a home in Texas is $333,000, according to Redfin. That number is down 1.3% compared to last year.
Affordability has become a central issue in the race. A Texas Public Opinion Poll released last month found that half of likely voters ranked affordability and cost of living among their top two priorities for elected officials. The poll also found that voters believed Talarico would do more than Paxton to address cost-of-living issues, 48% to 38%.
Both candidates say their plans would help Texans cope with higher costs, but they are targeting different parts of the problem. Paxton is proposing to reduce taxable income and expand family tax benefits. Talarico is proposing to increase wages, expand assistance and target what he describes as corporate practices that drive up prices.
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Polls have shown the hotly contested U.S. Senate race in Texas is in a dead heat.
How will Paxton and Talarico attack rising costs?
The candidates have differing views on how to combat the rising costs facing Texans.
Big picture view:
Paxton calls his plan "Protecting the Texas Promise" and wants to provide relief through tax breaks and family tax benefits. The proposed deductions could be taken on top of the standard deduction. His proposals include:
- $50,000 deduction for first-time homebuyers and another $50,000 deduction for people moving into a new primary residence.
- A deduction of up to $25,000 for an individual’s out-of-pocket health care expenses, plus another $25,000 per dependent
- A $5,000 deduction for health-related expenses, including gym memberships, nutrition plans, GLP-1 medications and sports activities for dependents
- Doubling the Child Tax Credit and making Trump Accounts permanent
The other side:
Talarico is presenting a broader plan that focuses on direct costs and income through wage increases, tax credits and public programs. He is proposing:
- Raise the federal minimum wage to $15 an hour
- Expand the Child Tax Credit and Earned Income Tax Credit
- Extend Affordable Care Act premium subsidies
- Create a public health insurance option
- Lower prescription drug costs and regulate pharmacy benefit managers
- Increase housing assistance and target corporate landlords
- Repeal tariffs he says are increasing prices
Who are the candidates targeting?
Dig deeper:
Paxton’s proposals are primarily aimed at taxpayers with qualifying health care expenses, prospective homebuyers, families with children and people who spend money on certain health-related activities.
The other side:
Talarico’s proposals are aimed at workers, renters, patients, families with children and lower-income households, though the campaign has not provided a full estimate of how many Texans would qualify or how much the proposals would cost.
How would people benefit from each candidate's agenda?
Paxton's agenda would give taxpayers a lower taxable income and provide expanded tax benefits for some.
Talarico’s agenda is intended to lower prices, increase wages and expand assistance programs.
Changes to federal tax laws and tax credits would be required for Paxton's plan to take effect. Additionally, it remains to be seen who would benefit the most from this plan and how those deductions would be realized.
Paxton’s plan includes specific proposed deduction amounts, while Talarico’s agenda covers a wider range of policy goals. Neither candidate has provided a full cost estimate for the complete package. Both would need congressional approval to enact their proposals, and the impact on individual Texans would depend on the details of any legislation that ultimately passes.
The Source: Information in this article comes from campaign speeches and releases from James Talarico and Ken Paxton.