Texas Attorney General Ken Paxton is making tax relief the centerpiece of his U.S. Senate campaign, unveiling a package of tax deductions Friday that he says would lower the cost of healthcare, homeownership and raising a family.
The Republican nominee framed the proposal as a response to voters' growing concerns about affordability, an issue that has consistently ranked among the top priorities in polling as he faces Democratic state Rep. James Talarico in one of the nation's most competitive Senate races.
"Washington has made 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 in a statement that also serves as the opening message of a new digital campaign ad. "My agenda is very simple: 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."
Paxton is scheduled to promote the plan during a statewide tour next week with stops in the Dallas-Fort Worth area, Houston, McAllen and San Antonio.
The proposal would create several new tax deductions that taxpayers could claim in addition to existing deductions, including the standard deduction.
The largest healthcare provision would allow individuals to deduct up to $25,000 in out-of-pocket medical expenses, including insurance premiums, with another $25,000 deduction available for each dependent.
Paxton is also proposing a new deduction of up to $5,000 for expenses tied to healthy living, including gym memberships, nutrition programs, youth sports activities and GLP-1 weight-loss medications.
His housing plan includes a $50,000 deduction for first-time homebuyers and another $50,000 deduction for down payments on a new primary residence. Similar housing tax proposals have drawn bipartisan interest in recent years as lawmakers search for ways to improve affordability.
The plan would also expand two provisions included in last year's One Big Beautiful Bill Act.
Paxton wants to permanently extend the "Trump accounts" program, which currently provides eligible children born between Jan. 1, 2025, and Dec. 31, 2028, with a one-time $1,000 federal contribution to a tax-advantaged savings account. He is also calling for the maximum child tax credit to double from up to $2,200 to $4,400 per child.
The proposal comes as both candidates are trying to convince voters they have the better answer to rising household costs, though their approaches differ sharply.
Paxton's platform relies on expanding tax deductions and credits to leave more money in taxpayers' pockets. Talarico has instead proposed raising taxes on billionaires and large corporations while closing tax loopholes, alongside expanding the child tax credit, increasing the federal minimum wage, repealing President Donald Trump's tariffs, creating a federal public health insurance option, expanding the low-income housing tax credit and cracking down on corporate landlords that buy up housing and raise rents.
Whether Paxton's tax plan could become law would depend largely on Republicans maintaining control of Congress and advancing another major tax package, or finding enough bipartisan support to pass individual proposals.
The focus on affordability reflects what voters continue to say matters most. A recent Fox News poll found 37% of Texas voters identified inflation and high prices as their top issue, more than twice as many as those who chose immigration and border security. Among independent voters, 43% said the cost of living was their biggest concern.
