The Private Sector in Texas, the economic engine of the Texas economy, is being besieged with
adversity from policy makers from the Federal Government and our executive in Austin.
While it has been said that Texas is doing great because people are running to get to Texas, it
needs to be put into the correct perspective that they are running from the bow of the Titanic to the
stern of the Titanic. The arrival at a momentary dry area does not indicate the lack of moisture in
the area in the future.
The iceberg that has been impacted is excess public spending and continued public policies that
create a growing tax burden on private sector.
The job creators in Texas have been paralyzed by public policy such as, tax increases,
government regulation, and government mandates and have dug in until they can know what
future holds for public fiscal policy.
Investment capital and household discretionary spending are being wasted to support policies
that do not expand an economy. Namely:
• $4 billion spent on educating a resident population’s youth that do not contribute
to the tax base,
• $700 million for health services to the afore mentioned group,
• The lost wage increase that the same group would be to spend if they were legal citizens
earning the wage instead of a slave wage,
• Monies lost to Tolls or Taxes on population movement and business logistics,
• Interest paid on bonds that built roads that our children will pay for,
• Insurance industries doing business in Texas not realizing premium levels sufficient to
mitigate their risk, and thusly passing on inflated premiums to those who pay them because
of unlicensed and unskilled drivers,
• Increasing unemployment taxes on employers, and
• Increasing fuel taxes
These are just some of Texas redistribution policies that inhibit the private sector emanating from
Austin. The Federal Government is also blanketing the private sector with taxes and regulation, i.e.
the health care bill which adds multiple mandates onto businesses, cap-and-trade policies that
would make energy more expensive, and Union "card-check".
The unemployment rate in Texas has been affected more by the private sector's lack of “Job
Creation” than “Job Loss”. The main reason for high unemployment in the nation, and Texas, is
the understandable inability or unwillingness of the private sector to invest and expand to create
new jobs in the current environment to offset the job losses. That is not saying that the current
public policies did not create many job losses.
To help cure this environment in Texas there should be:
• A New Business Start Up incubator policy in Texas that states that a New Business Start Up
would pay Zero Margin Tax for the first five years of the operation. This would free up
capital for investment in the business to insure its success and provide a greater return for
the Venture Capitalist which would create a willingness to invest.
• An annual incentive if all the organization’s employees are citizens therefore increasing the
wage base which in turn increases buying power and sales tax revenue.
• A Margin Tax deduction for employers who contribute to an employee's HSA.
• Foreign and domestic business recruitment needs to be a priority, specifically in the
manufacturing sector, therefore creating Texas Economic Self-Sufficiency.
These are a few low tax, low inflation policies that encouraged entrepreneurship and business
expansion. Public policy should facilitate a pro growth environment for investment in the private
and voluntary sectors so opportunity is made in the form of job creation thereby creating self-
reliance.
| Economy |
| Pol. Ad Paid for by the Campaign to Elect Fran Cavanaugh Governor Brent Williams, Treasurer P.O. Box 1231, Allen, TX 75013 (C) Copyright 2010 Cavanaugh Campaign ~ All Rights Reserved Worldwide |
