We economists love a good object lesson for the vague principles and theories we discuss. That’s why the Tax Foundation’s “Tax Freedom Day” is so useful — it provides a clear, concrete example of how tax policy (which is boring) affects every American’s paycheck (which is very not boring). Tax Freedom Day is the date...
The one-pager outlines our analysis of how a “real cuts” plan compares with scenarios of a 2.5% rollback rate excluding debt and a 4% cap including debt. The current rollback rate is 8%, but it does not include local debt increases. Additionally, a tax ratification election on rates that exceed 8% can only be held...
Will your paycheck go up by 5 percent or more each year for the next two years? That’s how much your state legislators may raise your taxes. While it’s not over until it’s over, the time to correct the Texas Legislature’s spending excess is quickly running out before sine die. Thankfully, Governor Abbott, Lt. Gov....
Benjamin Franklin said “By failing to prepare, you are preparing to fail.” It makes sense to prepare for the unexpected. That was the purpose of Texas’ Economic Stabilization Fund (ESF), also known as the state’s “Rainy Day Fund.” But there are efforts this session to abuse the ESF by excessively growing government. The ESF receives...
The 86th Texas Legislature is already halfway over. The House’s budget will be on the floor on Wednesday. This is perfect time to review each chamber’s budget priorities. Unfortunately, it looks like this budget could exceed your ability to pay. The good news is that there’s time to avoid that failure. Let’s begin by reviewing...
The State of Texas spends too much and Texans pay skyrocketing tax bills. Texans can obtain lasting, meaningful property tax relief by slowing excessive state and local spending growth and using state surplus revenue to eliminate M&O school district property taxes.
As Yogi Berra once said, “If you don’t know where you’re going, you’ll wind up somewhere else.” That’s exactly where the Texas Legislature might find itself on the state’s budget for 2020-2021—somewhere else. Without a benchmark for the budget—an answer to the question of how much we have to spend—lawmakers are in danger of outstripping...
Monday, March 18 marks the halfway point of the 86th Texas Legislature—a session that began with unprecedented accord among leadership and high hopes for some relief from the skyrocketing property tax burden that drives too many Texans from their homes and businesses each year. But midway through, there’s little sign of assured tax reform, and...
You shouldn’t have to get government’s permission to pursue your dreams. Texas Gov. Greg Abbott recently noted in his State of the State speech that people move to Texas because they’re “fed up with big government policies increasingly running their lives and imposing burdensome regulations.” Texas’ entrepreneur-friendly economic environment supports almost limitless opportunities to flourish. But...
In his recent State of the State address, Gov. Greg Abbott scored a standing ovation when he said, “I am declaring school finance reform and increasing teacher pay as emergency items.” There’s no doubt that fixes to the school finance system are long overdue, but raising teachers’ pay and overhauling the state’s school funding formulas...
There’s a perception of millennials as quirky (and problematic) young adults who haven’t quite bought into the system that has built America into the most robust economy the world has ever seen. But millennials are now in their 20s and 30s, and they make up the largest share of laborers in the workforce. Despite millennials’...
A recent University of Texas/Texas Tribune poll shows that 72 percent of Texans support “requiring local governments to ask voters before raising property tax revenues more than a set amount.” This support was on display during recent public hearings on nearly identical bills in Senate Bill 2 and House Bill 2, both of which would...