Republican Ken Paxton and Democrat James Talarico have outlined their tax and affordability initiatives while on the campaign trail for the U.S. Senate.
Paxton, who serves as Texas Attorney General, and Talarico, an Austin-area state representative, are in a closely-watched race to represent Texas statewide in Washington. In the Lone Star State and across the country, economic issues rank among voters’ top priorities for the Nov. 3 midterms. Early voting runs from Oct. 19-30.
What have Paxton and Talarico said about saving taxpayers money? We break it down.
Tax PolicyKen Paxton, Republican
Paxton’s affordability plan includes a series of tax deductions. He proposes:
Making “Trump Accounts” permanent and doubling the existing Child Tax Credit.A $25,000 tax deduction on out-of-pocket medical expenses, for individuals and an additional $25,000 for each dependent.A $50,000 deduction for first-time homebuyers and Texans who move to a new primary home.A $5,000 tax deduction for “healthy lifestyle” related spending. This includes expenses like gym memberships, nutrition plans, GLP-1 medications and sports for dependents, according to Paxton’s campaign.
When announcing his plan, Paxton said: “We all know that Texans and Americans are struggling with expenses. I want to make it easier for people to pay those expenses.”
Ken Paxton, Texas Attorney General and candidate for U.S. Senate, speaks on night one of the 2026 Republican Convention on Wednesday, Sept. 9, 2026 at American Airlines Center in Dallas. Abigail Dollins Fort Worth Star-Telegram James Talarico, Democrat
Much of Talarico’s campaign for affordability has focused on taking on billionaires.
“We have an affordability crisis because we have a corruption crisis,” Talarico said at an August event in Arlington. “We’re getting screwed. Whether you’re a little more conservative or a little more progressive, we’re all getting screwed.”
According to his website, Talarico’s tax-focused affordability initiatives include:
Making billionaires “pay their fair share in taxes” by increasing taxes on their income and capital gains and ending loopholes used by billionaires “to grow untaxed wealth.”Rolling back tax breaks for corporations and closing loopholes that “allow hedge funds to avoid paying billions that they owe.”Eliminating the social security tax cap for those earning more than $400,000 a year.Expanding the Child Tax Credit and Earned Income Tax Credit.Reinstating the Affordable Care Act’s enhanced premium tax credits.Expanding the Low-Income Housing Tax Credit.Repealing “Trump tariffs.”
Talarico has also proposed suspending the federal diesel tax.
James Talarico, Texas’ Democratic nominee for the U.S. Senate, kicks off The New American Dream Tour on Wednesday, Aug. 5, 2026 at Esports Stadium in Arlington, Texas. Talarico will travel to 10 more cities on the tour to talk about his plan for the economy. Abigail Dollins Fort Worth Star-Telegram
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Eleanor (Elly) Dearman is a Texas politics and government reporter for the Fort Worth Star-Telegram. She’s based in Austin, covering the Legislature and its impact on North Texas. She grew up in Denton and has been a reporter for more than six years.
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