In the race for the U.S. Senate seat currently held by Republican John Cornyn, both candidates have released their affordability plans as they approach the Nov. 3 general election. Ken Paxton, the Republican nominee and Texas attorney general, was the first to present his plan, followed by James Talarico, the Democratic nominee and a state representative.
Paxton's plan, titled Protecting the Texas Promise, emphasizes federal tax deductions. It includes a deduction of $25,000 for medical expenses and health insurance premiums, along with an additional $25,000 for each dependent. Furthermore, it proposes a $50,000 deduction for individuals purchasing their first home and another $50,000 deduction for those relocating to a new primary residence.
The plan also introduces a $5,000 deduction for healthy lifestyle expenses, encompassing gym memberships and nutrition plans. Additionally, Paxton aims to increase the federal child tax credit to $4,400 for each child under 17 and make permanent the tax-deferred investment accounts for children, known as Trump Accounts.
On the other hand, Talarico's proposal, dubbed the New American Dream, focuses on wages and debt relief rather than new tax deductions. His plan includes repealing tax breaks for the wealthiest 1 percent, which he claims would free up $1 trillion for the middle class.
Talarico advocates for universal childcare, raising the minimum wage, and expanding overtime pay, as well as canceling medical debt and preventing hospitals from overcharging patients. He has also suggested creating an AI dividend funded by artificial intelligence companies to benefit Americans.
Currently, polling averages indicate Talarico is slightly leading Paxton by 1.6 percentage points. Neither candidate has provided a comprehensive cost estimate for their plans, which would require congressional approval to implement.
