Telephone rates in Texas reflect substantial distortions that were intended to make basic local service “affordable.” Measured only by that narrow goal, the policy might be considered a success. Local rates for large incumbent carriers fall about $600 million short of covering long-run incremental costs, and consumers pay higher prices for other services to make up the difference. Local wire-line rates are cheap, but consumers bear a high cost in exchange for these bargain rates.
Local Government
Small Towns, Big Tax Increases
The city of Whitesboro ignited a firestorm recently when officials suggested adopting a tax rate that would have skyrocketed the average homeowner’s property tax bill by 61 percent. The initial public hearing to discuss the matter drew hordes of angry Whitesboro residents who voiced their discontent. So much so, in fact, that city councilmembers tabled...
September 17, 2025