In the Texas U.S. Senate race, both candidates have introduced plans aimed at enhancing affordability as the general election approaches on Nov. 3. Republican nominee Ken Paxton, who previously defeated John Cornyn in a runoff, released his strategy first, followed by Democratic nominee James Talarico.
Paxton's plan, titled Protecting the Texas Promise, emphasizes federal tax deductions. It proposes a deduction of $25,000 for medical expenses and health insurance premiums, along with an additional $25,000 for each dependent. The plan also includes a $50,000 deduction for first-time homebuyers and another $50,000 for down payments on new primary residences.
Additionally, it suggests a $5,000 deduction for healthy lifestyle expenses, which encompasses gym memberships and nutrition plans. Paxton aims to increase the federal child tax credit to $4,400 for each child under 17 and make Trump Accounts permanent for tax-deferred investments for children.
On the other hand, Talarico's plan, called the New American Dream, focuses on wages and debt relief rather than new deductions. He proposes to eliminate tax breaks for the wealthiest 1 percent, redirecting $1 trillion to the middle class as a cost-of-living tax cut. His initiatives include universal childcare, raising the minimum wage, and expanding overtime pay.
Talarico also aims to cancel medical debt and limit overcharging by hospitals and insurance companies. He has suggested creating an AI dividend that would collect revenue from AI companies to distribute to Americans.
As of late July, polling data indicated Talarico leading by 1.6 percentage points. Neither campaign has provided a complete cost estimate for their proposals, and both plans would require Congressional approval to be enacted.
