Gas tax pauses, homebuyer deductions and data center rules: where Texas' top statewide candidates stand on costs

With early voting set to begin Oct. 19, The Texas Tribune on Thursday published a guide comparing what candidates in three statewide races say they would do about the cost of living, along with gaps experts see in those plans.

The guide covers the U.S. Senate race between Republican Ken Paxton and Democrat James Talarico, the governor's race between Republican Greg Abbott and Democrat Gina Hinojosa, and the lieutenant governor's race between Republican Dan Patrick and Democrat Vikki Goodwin. Tribune reporters surveyed campaigns, reviewed campaign websites and interviewed experts.

Gas and diesel

Diesel in Texas hit $6 a gallon in September, a state record, the Tribune reported, citing AAA.

• Paxton backs permanently repealing the federal gas tax and wants more domestic oil and gas production.
• Talarico has called for a pause in federal taxes on gas and diesel and for ending the Iran war.
• Abbott issued an emergency declaration on fuel prices and allowed untaxed dyed diesel on Texas roads, but has said only the Legislature can suspend the gas tax.
• Hinojosa wants Texas and federal fuel taxes paused.
• Patrick said in Midland that he trusts President Trump's war with Iran and that higher pump prices are worth it to defeat the Iranian regime.
• Goodwin blamed the war for high prices and wants Texas to promote remote and flexible work arrangements and more public transit.

Policy experts broadly criticize gas tax holidays, the Tribune noted, saying the savings are small and the extra demand during a shortage can push prices up.

Power, water and data centers

Abbott, Hinojosa, Paxton and Goodwin all say data centers should pay for the electricity and water infrastructure they need; Talarico would pursue federal legislation to that effect. Abbott has also called for ending municipally owned utilities, which he argues raise rates.

Patrick supports a legislative moratorium on new data centers until concerns about their power and water use are addressed, and wants to pause a large planned transmission line buildout.

Housing and property taxes

Paxton proposes letting people buying their first home, or relocating to another primary home, deduct $50,000 from income taxes, and would bar corporations from buying single-family houses. Talarico would broaden the federal Low-Income Housing Tax Credit, stop Wall Street firms from buying homes and help buyers with down payments.

Patrick wants to lower the age for the senior school-tax homestead exemption to 55 and lift the exemption every homeowner gets to $180,000 of value, up from $140,000. Goodwin wants more state money for schools to lower local property taxes and an automatic homestead exemption for new homeowners.

The Tribune found that no candidate has proposed direct financial relief for renters or a "circuit breaker" that caps a tax bill at a share of income.

Health care

Paxton would let people deduct up to $25,000 in out-of-pocket medical spending, with as much as $25,000 more for each dependent. Talarico supports Medicare for All. Abbott has proposed capping inhaler and epinephrine costs at $25 and letting small employers offer a cheaper benefits plan.

Hinojosa wants to ban bad-faith insurance denials and shore up rural hospitals. Goodwin proposes a state insurance plan for working adults who earn too much for Medicaid. Patrick has not offered specifics, the Tribune reported.

Sources

The Texas Tribune