The Texas Stock Exchange (TXSE) logo (Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
Next Tuesday, November 5, New York City voters are likely to elect a new mayor who has campaigned on income tax hikes for upper-income households and businesses. Meanwhile, that same day, Texas voters are expected to approve ballot measures banning state taxation of capital gains and the imposition of a financial transactions tax. The heightened contrast is sure to help the Texas Stock Exchange (TXSE), the new Dallas-based stock market set to launch in 2026.
An October 31 Wall Street Journal report about a new $90 million commitment to the TXSE from J.P. Morgan, the investment bank of JPMorgan Chase, noted that the TXSE “has billed itself as more CEO-friendly” than the New York Stock Exchange, adding that “previous investors include Citadel Securities, BlackRock and Charles Schwab.” The new infusion from JP Morgan, the WSJ added, “brings TXSE’s total fundraising to date above $250 million.”
Ballot propositions banning a state death tax, a financial transactions tax, and a capital gains tax aren’t the only 2025 ballot measures that are set to make Texas an even more attractive destination to live, work, and invest. Texas voters will have the opportunity to enact reforms that provide further tax cuts, particularly property tax relief.
Polling shows Texas voters are likely to approve Proposition 13, which will provide property tax relief to Lone Star State residents through a 40% increase in the homestead exemption. The state’s $100,000 homestead exemption would rise to $140,000 if voters enact Proposition 13 next Tuesday.
“While not a permanent fix to property taxes, the amendment should help slow the growth of property taxes for all homeowners,” says Texans for Fiscal Responsibility (TFR), who has endorsed Proposition 13. While Proposition 13 seeks to provide relief for all property taxpayers in Texas, Proposition 9 would provide relief from the business personal property tax, commonly referred to as the inventory tax, to small businesses across the state. If approved, Proposition 9 would significantly increase the existing $2,500 inventory tax exemption, raising it to $125,000.
“Texas is one of just nine states where small business owners pay taxes on the value of their inventory for sale, their personal property, and everything else used to generate income,” noted the National Federation of Independent Business’s Texas chapter in its statement of support for Proposition 9. NFIB adds that passage of Proposition 9 “would save Texas small businesses over $500 million annually,” and “make Texas even more competitive amongst its neighboring states.”
“This constitutional amendment simplifies compliance, reduces bureaucratic costs, and incentivizes productivity,” notes TFR’s analysis of Proposition 9. “It cuts down on burdensome taxation that can stifle economic growth, especially for small operations. This is a pro-growth, pro-business reform that respects taxpayers and limits government overreach.”
The ballot measures that Texas voters will likely approve on November 5 underscore why governors and legislative leaders in so many states are pursuing a phaseout of their income tax that would have them join Texas in the club of no-income-tax states. The eight existing no-income-tax states have already demonstrated the economic benefits of avoiding an income tax, and many are now seeking to expand that advantage by making their tax codes even more competitive.
Governors In Numerous No-Income-Tax States Pursue Further Tax Relief
Texas isn’t the only no-income-tax state where legislators are pursuing property tax relief. In fact, in no-income-tax Florida, Governor Ron DeSantis is now pushing for a full phaseout of property taxes in Florida. In particular, Governor DeSantis is championing a single measure for the 2026 ballot that would begin phasing out all property taxes in Florida. Republicans in the Florida House of Representatives introduced eight property tax relief proposals on October 17, with seven of them being constitutional amendments requiring voter approval in November of 2026.
Constitutional amendments must receive approval from at least 60% of voters in order to be enacted. The James Madison Institute, a Florida-based think tank, recently conducted a poll that found 65% of those surveyed said they would support a ballot measure to provide property tax relief.
Lawmakers in other states are also pursuing property tax relief or limitation in the coming year. In no-income-tax Tennessee, for example, legislators will seek to pass a bill in 2026 that limits the growth of property tax bills. Tennessee is currently one of only four states without some form of property tax limit on the books.
“To provide relief for taxpayers, we must set firm limits on how fast local governments can grow their budgets,” Justin Owen, president of the Beacon Center of Tennessee, and John Hendrickson, policy director at Iowans for Tax Relief, wrote in an October 17 article in Governing Magazine. “This will ensure that taxes do not outpace the ability of families and businesses to pay. Taxpayers must be protected from unchecked growth in local government spending.”
“Eliminating property taxes may be a noble solution, but tax policy should always be approached with prudence,” Owen and Hendrickson added. “Replacing property taxes with a new tax or raising an existing tax to a higher rate, or even shifting more responsibilities to the state budget, are not necessarily sound tax policies. The best approach to lower taxes is to limit local government spending.”
There were already plenty of reasons for lawmakers in no-income-tax states to pursue property tax cuts, property tax limits, and other forms of tax relief. But the case for doing so is strengthened by the fact that, at present, governors and legislators in nearly a dozen states across the country are seeking to phase out their income taxes. As more states eliminate their income tax, the lack of a state income tax will become less of an advantage. Leaders of no-income-tax states — such as Governors Abbott in Texas, DeSantis in Florida, and Lee in Tennessee — have made clear they are not resting on their laurels and that they welcome the competition.
Source: https://www.forbes.com/sites/patrickgleason/2025/10/31/texas-and-new-york-set-to-send-contrasting-signals-to-investors/
