Texas lawmakers have introduced a significant constitutional amendment aimed at safeguarding individual and family wealth from potential taxation on capital gains. Texas Senate Joint Resolution 18, proposed by Senator Perry, seeks to prohibit the imposition of taxes on both realized and unrealized capital gains for individuals, families, estates, and trusts. This resolution, if passed, would amend Article VIII of the Texas Constitution and is set to be presented to voters on November 4, 2025.

The key provision of S.J.R. 18 explicitly states that the Texas legislature cannot impose taxes on capital gains, which includes taxes on the sale or transfer of capital assets. However, the resolution clarifies that it does not prevent the state from levying other forms of taxation, such as property taxes, sales taxes, or use taxes on goods and services.

Supporters of the bill argue that it will protect Texans from potential tax increases that could arise from future legislative actions, thereby promoting economic growth and investment within the state. They contend that taxing capital gains could discourage investment and harm the state's economy, which relies heavily on a favorable tax environment to attract businesses and individuals.

Opposition to the resolution has emerged, with critics warning that such a constitutional amendment could limit the state's ability to generate revenue in the future. They argue that capital gains taxes are a fair way to ensure that wealthier individuals contribute to public services and infrastructure, especially as income inequality continues to rise.

The implications of S.J.R. 18 are significant, as it not only addresses the immediate concern of capital gains taxation but also reflects broader debates about tax policy and economic equity in Texas. If approved by voters, this amendment could solidify Texas's reputation as a low-tax state, potentially influencing migration patterns and economic decisions for years to come.

As the resolution moves forward, discussions surrounding its potential impact on the state's fiscal health and social equity will likely intensify, setting the stage for a heated debate leading up to the 2025 election.