Both candidates in the Texas U.S. Senate race have introduced their affordability plans as the Nov. 3 general election approaches. Republican nominee Ken Paxton, the state's attorney general, was the first to release his proposal, followed by Democratic nominee James Talarico, a state representative.
Paxton's plan, named Protecting the Texas Promise, focuses on federal tax deductions. It includes a $25,000 deduction for medical expenses and health insurance, along with an additional $25,000 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.
Furthermore, it allocates $5,000 for healthy lifestyle expenses, such as gym memberships and nutrition plans. Paxton aims to increase the federal child tax credit to $4,400 for each child under 17 and to make permanent the tax-deferred investment accounts for children, known as Trump Accounts.
In contrast, Talarico's plan, called the New American Dream, emphasizes wages and debt relief instead of new deductions. He proposes eliminating tax breaks for the wealthiest 1 percent, which he claims would redirect $1 trillion to the middle class. His plan also includes universal childcare, increasing the minimum wage, and enhancing overtime pay.
Talarico advocates for rebuilding labor unions, canceling medical debt, and preventing excessive charges from hospitals and insurance companies. He has also suggested creating an AI dividend to distribute revenue from artificial intelligence companies to Americans.
Polling data from RealClearPolitics indicates Talarico is currently leading by 1.6 percentage points. Neither campaign has provided a full cost estimate for their proposals, which would require congressional approval to implement.
