In the Texas U.S. Senate race, both candidates have announced their plans aimed at improving affordability for residents as the November 3 general election approaches. Ken Paxton, the Republican nominee and current attorney general, was the first to present his strategy, followed by Democratic nominee and state representative James Talarico.
Paxton's plan, titled Protecting the Texas Promise, focuses on federal tax deductions. It includes a deduction of $25,000 for medical expenses and health insurance costs, along with an additional $25,000 for each dependent. Furthermore, it proposes a $50,000 deduction aimed at first-time homebuyers and a similar amount for those relocating to a new primary residence.
Additionally, the plan introduces a $5,000 deduction for healthy lifestyle expenses, which encompasses gym memberships and nutrition plans. Paxton also aims to double the federal child tax credit to $4,400 for children under 17 and make permanent the tax-deferred investment accounts for minors, known as Trump Accounts.
On the other hand, Talarico's proposal, named the New American Dream, emphasizes wage increases and debt relief rather than new tax deductions. He plans to eliminate tax breaks for the wealthiest 1% and redirect those funds to the middle class, proposing universal childcare, an increase in the minimum wage, and expanded overtime pay.
Talarico also advocates for the cancellation of medical debt and aims to create an AI dividend that would distribute revenue from artificial intelligence companies to citizens.
As of late July, polling indicated Talarico leading by a narrow margin of 1.6 percentage points. Both candidates' proposals require congressional approval to be enacted, and neither has provided a full cost analysis of their plans.
