47. Reckless Spending: Effects of Biden's Build Back Better Plan and ARPA & Property Tax Elimination in Texas
In this Let People Prosper newsletter, I highlight our latest research on the economic effects of the Build Back Better plan, how we can get property tax elimination and wise uses of ARPA in Texas.
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Personal take: The last week has been a bit of a blur. I’ve testified three times before legislative committees in Texas (see below). And have had many great moments with family and friends. This tweet really got to me because even though I can often get caught up in the day-to-day activities of life, I remind myself often how blessed I am to be doing God’s will for my life. This wealth mindset is challenging but I know it will be the best path for having abundance and happiness and for leaving a legacy. #livingmydream
Hot take: There is so much reckless spending going on in Washington that it makes it almost hard to think about where to start to turn things around. Much of it starts with us, the people. We must begin to understand the cost of this excessive spending that reduces our liberties, purchasing power, entrepreneurial spirit, financial independence, and more. Instead, the government should be spending a limited amount to preserve liberty that is within the average taxpayer’s ability to pay for it (as measured by population growth plus inflation). This is a reason I’m so eager to get a spending limit imposed at the federal level like the Responsible American Budget that I released recently. Without changing how we view this excessive spending, we will continue heading down the path of no good return.
Register and watch this TPPF event on 10/7 at 12 pm CT.
Now for the latest on Texas, D.C., and COVID-19 in Texas.
TEXAS ECONOMIC AND FISCAL SITUATION
Don’t miss my conversation with Paul Gessing of the Rio Grande Foundation in New Mexico.Thanks for having me on the show, ! I enjoyed our conversation on many ways to .
Paul Gessing @pgessingOn this week's Tipping Point interview I talk to @VanceGinn Chief Economist at @TPPF about his time in DC with @POTUS45, how Texas stacks up economically with big "Blue" states like CA & NY, and what Texas needs to do next & what NM can do: https://t.co/5ofAhkHqC7 #nmpol #nmleg
I testified twice this week on bills that would allocate roughly $16 billion in ARPA funds to Texas. Both had good and bad components. I may have been the only person to actually advocate for remembering the taxpayer rather than having my hand out for increased spending. See these threads for more.I’m testifying today on that allocates $16B in funds to . We must remember the taxpayer. More on how in the commentary below & one pager here: texaspolicy.com/keep-texas-tex… https://t.co/es5AFxMxdq
Vance Ginn @VanceGinnResponsible Budgeting in Texas’ Special Session Here’s how to allocate #ARPA funds if they’re going to be allocated given it adds the national debt of $28+ trillion and further burdens Texas taxpayers. https://t.co/m5m5nDx3L1 @TPPF @DrGregBonnen @RepMattSchaefer @TerryWilsonTX
I testified for SB 1 and HB 90 to make the case for how these set the stage to eliminate property taxes in Texas over the next decade. Watch here:
Texas needs those pro-growth reforms to recovery quickly.Fortunately, has been taking steps to turn things around after the shutdown recession by passing a Conservative #Texas Budget, not raising taxes, cutting regulations, & hopefully soon cutting property taxes to put TX back in the lead again.
Vance Ginn @VanceGinnNEW: #Texas economy grew by 6.4% in Q2:2021. #Texas has 7th slowest recovery since pre-shutdown Q4:2019 after longer and more restrictive shutdowns than many in nation. This contributes to #Texas having 3rd highest unemployment rate of 5.9% for a dark red state. #txlege @TPPF https://t.co/hiBlfJirlc https://t.co/ahJMMluNXG
And that includes a need for regulatory relief.
I updated this a bit to include the cost of living differences among the states.
Commentary on how Texas can eliminate property taxes by 2033.
U.S. ECONOMIC AND FISCAL SITUATION
TPPF released this paper that I wrote with my colleague E.J. Antoni and friend Steve Moore (press release). We rip apart Biden’s Build Back Better agenda that would increase spending by $6.2 trillion, increase debt by $4.5 trillion, reduce jobs by 5.3 million, cut real median household income by $12,000, and more negative effects at the national and state levels compared with baseline growth. Please read and share! #killthebill
Nice overview of the costly spending items paying people not to work by economist Casey Mulligan.
See this coalition letter that I was proud to sign to not raise taxes (or spending).
Too bad President Biden (or many people) doesn’t understand economics.Let me be clear: No business pays taxes no matter the rate on it. Econ101 Businesses submit taxes that hardworking Americans pay for through higher prices, lower wages, lower investment returns, fewer hours, and fewer jobs available. Stop trying to hide your big govt socialism.
President Biden @POTUSLet me be clear: No hardworking American should be paying more in taxes than entire tech or oil companies. It’s long past time corporations pay their fair share.
Thoughts on the following point? Oh, and inflation isn’t transitory! #triggeredAnd given the fiscal insolvency in America, default would be a rational choice feel the burdens of excessive spending for decades. The cost of fiscal insanity must come home to roost before getting worse. I’d rather a fiscal rule that limits spending but that seems unlikely. https://t.co/E3UkT178Yl
John Cochrane @JohnHCochraneFact: If the debt limit binds, default is a choice, not an inevitability. The US government could choose to cut spending, so spending = taxes, no new debt. Pay bondholders not, say, social security. Cuts would be large. Default is a defensible choice. But default is a choice.
WHAT’S UP WITH COVID-19 IN TEXAS AND BEYOND
Latest: TX DSHS Covid-related data here. First 2 major waves had restrictions in place, but people forget and hospital data aren’t always best. Gov. Greg Abbott lifted state restrictions on Mar. 10, 2021, and blocked local restrictions on May 21, 2021. Things are improving in Wave #3 without shutdowns and mandates. Choose freedom over fear, mandates, and control.NEW 10/5/21 Wave #3 Improving Rt=0.68, 7-day avgs, hospitalizations Available staffed beds=14.7% ( =16.6%) Case-Fat Rate: Wave #1=2.5%, #2=1.8%, #3=1.8% Since 3/2020: Fat/Pop=0.2%, Case/Pop=11.3%, CFR=1.9% Freedom>Fear/Control
Vance Ginn @VanceGinnNEW 9/26/21 #COVIDTX19 Wave #3 Improving Rt=0.59, 7-day avgs, hospitalizations Available staffed beds=14.7% (#Austin=16.0%) Case-Fat Rate: Wave #1=2.5%, #2=1.84%, #3=1.77% Since 3/2020: Fat/Pop=0.2%, Case/Pop=11.3%, CFR=1.88% Freedom > Fear/Control @TPPF #txlege @justin_hart https://t.co/xy9x8gG68q https://t.co/I2b75ZApxk
I can relate to this quote by one of my favorite economists:
My prayers this week are focused on the following:
Thank you for reading and sharing this newsletter. I pray that we continue to walk in the light of Jesus Christ so that we learn from our failures and be ready to let our light shine because of Him. Many blessings to you and yours, and have a prosperous week.
Vance Ginn, Ph.D. | www.vanceginn.com | #LetPeopleProsper