Forum Replies Created
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Michael Quinn Sullivan, 13 years ago
Stuart — while not speaking for the campaign, I’d note that the state’s current business tax (the “gross margins” tax) has been highly frustrating to entrepreneurs because of the high complexity involved in calculating it.
There is a very simple economic truism: businesses don’t pay taxes, people pay taxes — businesses remit the taxes that people pay. The people paying the taxes business remit include the entrepreneur who has to absorb the cost, the investors who don’t see profits materialize, customers who pay higher prices and employees who have less money to take home.
In my view, business taxes tend to be favored by those who want to obfuscate the cost of government.
Michael Quinn Sullivan, 13 years ago
That’s a great point, Russell. There harder it is for people to get entry-level jobs, the less likely they are to climb the ladder of success!
Michael Quinn Sullivan, 13 years ago
Enrique — I’d point you to Item #1 on the “Working Texans” plan. While certainly some might not like the added transparency and accountability an expanded line-item veto brings to the budgeting process, it will no doubt force lawmakers to be a lot more careful when crafting the biennial budget. Anything that helps shine more light on government while constraining government growth is a win-win for Texans!
Michael Quinn Sullivan, 13 years ago
Warren — here’s what Mr. Abbott said in Houston a while back. Texas needs to “get out of the business of picking winners and losers.”
Michael Quinn Sullivan, 13 years ago
Well, I’m not sure what the Abbott campaign would say to that question, but I think the Working Texans proposals represent a very commonsense approach to fiscal matters supported by large numbers of Texans — regardless of party. Clearly, we should have the discussion and the public debate!
On the spending limit component, we know that 94% of GOP primary voters have supported such measures on non-binding ballots in recent primary elections — most recently in 2012.
Michael Quinn Sullivan, 13 years ago
Obviously, I’m not writing from the Abbott campaign’s perspective: I would suggest that we need to recognize that we have serious water problems — but the challenge is in addressing the problems of permits and permissions.
From federal environmental regulations to our own state bureaucracies, getting water from where it is to where it needs to be takes longer than it should, in terms of government allowances. There are serious and dicey issues at play, ownership rights, property rights… As the old saying goes, whisky is for drinking and water is for fighting over.
Michael Quinn Sullivan, 13 years ago
Well, first let’s recognize that a minimum wage job beats no job — which is precisely the situation too many folks face in other states. Texas has led the nation in job creation, and the “migration” numbers of people flowing here for work and opportunity say that we are doing something right — or, at least, better than the other states. We cannot rest there, though. Simply being “better than other states” isn’t sufficient, which I think is the point you are making. We need to make sure that the state unfetters the economy by reducing the drag of government on entrepreneurs. For example, the weight of unfunded mandates and business taxes give employers and job creators pause. The best way to let people soar from low-wage jobs is to not pile the weight of government on their shoulders!
Michael Quinn Sullivan, 13 years ago
David – that’s the heart of the matter, of course! What Mr. Abbott’s “Working Texans” plan recognize is that you have to approach fiscal policy comprehensively. But as we consider the needs for manufacturing and industry, we are also going to have to take a careful look at local property taxes — and therefore local spending. In his plan, Mr. Abbott refers to the state’s “extremely high levels of local debt” — that debt drives property taxes. Which is why we have among the highest property tax burdens in the nation, which create negative incentives for business.
