Paxton trumpets affordability message with new tax proposal as Senate race hits stalemate

Texas Senate candidate Ken Paxton on Friday unveiled a sweeping new tax proposal, as his Republican campaign hits a polling stalemate against rival James Talarico in one of the country’s tightest races. Paxton, who is also the state’s attorney general, touted the sweeping tax breaks plan as part of a new affordability campaign message highlighting how he aims to protect the American dream. The development comes as he and Talarico, the Democratic nominee for the U.S. Senate, have been running neck and neck in the polls, appearing to make the Texas race one of the closest nationwide. “I’m running because I believe the American dream is still worth fighting for. I hope you all will join me as I travel across our state to share my plan to make that dream a reality,” said Paxton in a video posted to X touting his “Protecting the Texas Promise Agenda.” Paxton’s economic plan, which he hopes to push through the Senate if elected, revolves around granting healthcare, family, and housing tax breaks. The attorney general is launching a tour next week to accompany the digital ad in promoting the plan, including stops in Allen on Aug. 4, Houston on Aug. 5, McAllen on Aug. 6, and San Antonio on Aug. 8. Paxton proposed a $50,000 deduction for first-time homebuyers and a $50,000 deduction on down payments for people moving to a new primary residence.A $25,000 deduction for any out-of-pocket medical expense, including premiums, for individuals, with an additional $25,000 per dependent, is another pillar of the tax plan. Paxton also proposed a $5,000 tax deduction to encourage healthier lifestyles, including workout and gym expenses, nutrition plan spending, and payments for sports activities for dependents. In addition, the attorney general wants to make the “Trump Accounts” permanent. Passed as part of President Donald Trump’s One Big Beautiful Bill Act last year, the measure is a tax-deferred investment savings account in which certain children are eligible to receive $1,000 in federal seed money, $5,000 per year in annual contributions from family and friends, and up to $2,500 from their parents’ employers. As of now, only children born between Jan. 1, 2025, and Dec. 31, 2028, are eligible for the one-time federal investment. Paxton wants to make it permanent and double the size of the child tax credit from $2,200 to $4,400. “Washington is making it harder than ever to get ahead, and the American dream is slipping away as the cost of everything from housing to healthcare rises,” Paxton said. “I believe every Texan should be able to buy a home, raise a family, and live a healthy life without struggling to make ends meet. That’s why I’m unveiling my Protecting the Texas Promise agenda.” TEXAS DEMOCRATS RIP PAXTON AFTER VIDEO SHOWS HIM FLYING TO ICELAND AHEAD OF JULY 4It remains to be seen if the attorney general’s latest affordability pitch will move the needle in the race. For months, polling has fluctuated between either showing Paxton and Talarico deadlocked or one of the men pulling slightly ahead. The latest polling from Fox News released Thursday indicates Talarico holds a lead of three percentage points. The development comes as Talartioc has consistently dwarfed his rival in prolific fundraising records.