The budget shortfall could be a good thing for Texas. A smaller government is more predictable, and leads to regulatory certainty. Having that environment allows businesses to grow. This is true at both the federal and state level.

At a recent Heritage event, U.S. Representative Eric Cantor recently laid out a plan for rebuilding our economy and building our business climate. Specifically, Congress should:

  • Rescind unspent stimulus funds;
  • Reform regulations-specifically repealing Section 404 of the Sarbanes-Oxley Act-to reduce unnecessary business costs;
  • Remove barriers to domestic energy production;
  • Suspend the job-killing Davis-Bacon Act and prohibit Project Labor Agreement (PLA) requirements on federally funded construction projects;
  • Conclude the pending free trade agreements (FTAs) with Colombia and Panama, as well as the recently announced agreement with South Korea; and
  • Reduce taxes on foreign earnings to encourage companies to repatriate the profits to America.

    Texas should look at similar ways to reduce taxes and regulation.

    As one State Representative recently pointed out, “if you continue to feed government, it will continue to grow and ask for more.” This budget shortfall is a good time to reflect on what policies made Texas great, and how to make sure we strengthen those policies.

    -Ryan Brannan