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One of the key focal points of my fireside chat on Texas’ business climate with Governor Greg Abbott last week was the meteoric rise of our state’s financial services sector, which he rightly pointed out is quickly becoming ‘the new financial services capital of America.’

Just this week, the U.S. Securities and Exchange Commission (SEC) approved the registration for the new Dallas-based Texas Stock Exchange (TXSE), adding even more momentum to the growth of “Y’all Street” and attracting new giants of the financial industry to the Lone Star State. This follows years of momentous growth in financial services giants re-establishing their operations and growing in Texas, including Charles Schwab, Goldman Sachs, JPMorgan Chase, and most recently Scotiabank – along with the regional headquarters of the New York Stock Exchange and Nasdaq.

In the upcoming November 4th Constitutional Amendment Election, Texas voters will have an opportunity to solidify Texas’ dominance in financial services, making our state an even more attractive place for investment by eliminating taxes on transactions, profits, and property.

Proposition 2 is a constitutional amendment that would permanently ban a state capital gains tax, ensuring Texans will no longer have to pay a tax on profits from selling any asset – including stocks, real estate, and other investments. This proposition will cement Texas’ pro-investment advantage and attract startups, venture capital, and high-growth firms that create jobs and inject massive growth into the Texas economy.

Proposition 6 would prohibit the state from creating any new taxes on stock or securities trades, which protects investors and entrepreneurs and positions Texas to dominate the competition in financial services sector, particularly compared to high-tax states like New York, where the threat of re-imposing taxes on stock transactions is ever-present. This amendment, which was passed with bipartisan support in both legislative chambers this session, will make the ban on new stock transaction taxes permanent, makingTexas an unrivalled destination for financial institutions, brokers, and dealers, while protecting investments that support Texans’ retirement accounts and pensions from additional taxes. 

Proposition 8 bans estate, inheritance, and gift taxes, allowing family businesses and farms to grow and pass on wealth to the next generation without fear of penalty. Though Texas does not currently have an inheritance tax, this amendment ensures lawmakers cannot impose one in future legislative sessions, providing certainty and clarity for those who are carefully planning for financial stability for their children and grandchildren.

Texas has long been attractive to companies and workers alike because we have no state income tax. These amendments help cement the key financial benefits that attract business leaders, entrepreneurs, and innovators alike by eliminating taxes on other forms of income through the sale of stocks and property, as well as inheritance. Combined, they will ensure Texans can keep more of what they own, grow generational wealth, and re-invest into our already superior, booming economy.

If you haven’t already registered to vote, make sure you’re registered by next Monday, October 6th to vote in the upcoming November 4th Constitutional Amendment Election. Early Voting begins on Monday, October 20th.

To read the full text and explanatory statements for Propositions 2, 6, and 8, click here.

-Glenn Hamer, President & CEO, Texas Association of Business

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