In the race for the U.S. Senate seat currently held by Republican John Cornyn, both candidates have released their plans aimed at improving affordability for Texans. Ken Paxton, the Republican nominee and Texas Attorney General, was the first to present his proposal, followed by Democratic nominee James Talarico, a state representative.
Paxton's plan, titled Protecting the Texas Promise, focuses on federal tax deductions. It includes a deduction of $25,000 for out-of-pocket medical expenses and health insurance premiums, along with an additional $25,000 deduction for each dependent. The proposal also features 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 expenditures, which encompasses gym memberships and nutrition plans. Furthermore, Paxton aims to increase the federal child tax credit to $4,400 for each child under 17 and make permanent the tax-deferred investment accounts for children known as Trump Accounts.
On the other hand, Talarico's plan, referred to as the New American Dream, emphasizes wages and debt relief rather than tax deductions. He proposes repealing tax breaks for the wealthiest 1 percent, which he claims would redirect $1 trillion to the middle class. His plan also includes universal childcare, raising the minimum wage, expanding overtime pay, and canceling medical debt.
Talarico has framed his approach as a fight against economic corruption, asserting that the affordability crisis stems from governance issues.
As of late July, polling data indicated Talarico leading Paxton by 1.6 percentage points. Neither candidate has provided a comprehensive cost estimate for their proposals, which would require Congressional approval to be enacted.
