22. Spring Break Recap: What's the Situation?
In this newsletter, I discuss my trip to Houston, the latest happenings at the Texas Legislature and Congress, and how to recover quickly through a pro-growth, limited government strategy.
Hello Friend!
I hope you had a prosperous week! As always, please email me at vanceginn@gmail.com with your feedback, questions, or just to catch up. I appreciate the feedback and will do my best to improve this newsletter. I’ve received positive comments so far with some good constructive criticism, so please keep it coming!
This week was another productive one for me and my family. The main highlight of my week was taking our boys on a trip to visit family in Houston. It’s always good to get back to my old stomping grounds (South Houston/Pasadena, TX area). They picked up toys (jet and ATV) and we were on our way. These toy choices reflect their personality pretty well as Bricen (6 years old) is flying around and soaring at new heights while Cooper (3 years old) is running over whatever is in his path and taking on the next hill.
While I have less time with them during the legislative session in Texas, I try to get as much time with them as possible when I can because being a dad is definitely one of God’s greatest gifts.
The Texas Legislature has certainly been heating up with the start of Spring and the days until Sine Die are quickly approaching. I was at the Texas Capitol more this week and it was great to see so many members, their staff, and friends around the halls. It’s still much less busy than prior sessions because of COVID. I also took my first COVID test while there as you must do so before testifying before the Texas Senate and meeting with members of the Senate. The Texas House doesn’t have the same rules so you can testify before committees without being tested, though a mask is still required, and testing is determined by individual members before meeting with them.
If you missed TPPF’s excellent Livestream last week where I joined TPPF’s Executive Director Kevin Roberts (moderator), Rachel Greszler (Heritage Foundation), and Jared Walczak (Tax Foundation) on what's wrong with the $1.9T ARPA, watch it here:
Let’s jump into the material so we can find ways to let people prosper.
TEXAS ECONOMIC AND FISCAL SITUATION
Listen to my conversation on this TPPF podcast with my colleague Derek Cohen, Ph.D., where we discuss how bailouts are weakening our institutions and future prosperity.
Specifically, we discuss the inappropriate repricing/bailout suggestion by some regarding the recent electricity rates during the Texas power outages. And we talk about the problems with President Biden’s American Rescue Plan Act (ARPA) of 2021 and what the bailouts mean for Texas. In short, Texas should not reprice electricity rates and it would be great if Texas rejected ARPA funds given we have a balanced budget and don’t need to deal with the restrictions and strings attached to receiving the funds. But if there’s not the political will to appropriately reject them, then there should be a long-term strategy for the state while further bankrupting the country.
Texas’s labor market continues to improve but there’s much room for improvement, as noted in the state’s recent jobs report that I highlighted in my latest Brief.
People keep moving to Texas where there are no personal income tax, relatively lower taxing and spending, and sensible regulation, as noted recently by my TPPF colleague Chuck DeVore.
But of course, there’s more to do because many people are still in poverty, especially after the stringent restrictions in response to the pandemic by the state over the last year.
The Tax Foundation recently updated their state and local tax burden report, which is a share of total taxes paid over the state’s share of net national product, and notes that Texas ranks as the fourth-lowest burden (fourth best!).
But, as I noted in my recent testimony before the Texas House Ways & Means Committee, other variables must be considered, and these show that Texas does pretty well compared with other large states, but the Texas Model should be strengthened for greater prosperity and self-sufficiency.
A way to improve the Texas Model is by reducing tax burdens, as my TPPF colleague James Quintero noted here:
I had the opportunity to testify for three good bills last week. Two of these help to use taxpayer dollars more wisely while getting resources directly to people in need instead of wasting them on excessive bureaucracy, other programs, and people the program does not intend to provide funding. A good step is an independent efficiency audit of TANF and another is to simplify theSNAP’s certification process.
Texas should stop picking winners and losers with the tax code. A great start would be to not extend the expiring Chapter 313 property tax abatements authorized by school districts that receive the same funding with or without it because taxpayers across the state socialize those decisions made at the local level. This is a terrible tax policy and should be eliminated this session, especially given how they go proportionately more to unreliable sources of energy (wind and solar).
More on the Texas power outages and government failures.
We need education freedom in Texas!
I’ll be testifying on a couple of bills this week before the Texas Legislature, so please check for updates on my Twitter page.
U.S. ECONOMIC AND FISCAL SITUATION
If only we better understood the key lessons of economics:
Check out my commentary this week on the American Rescue Plan Act of 2021, where I note how terrible this monstrosity is for Americans today and in the future.
Here’s a good overview by the Tax Foundation on what’s in President Biden’s ARPA:
There remain many questions about what states can and can’t do with ARPA funds, and if they use them, what does that mean about state sovereignty given the many strings attached and restrictions on direct and indirect tax relief. I believe the best policy and political decision is for states to reject these funds to not give up independence, to avoid fiscal cliffs, to cut taxes, and to help from bankrupting the country as quickly as this monstrosity does. Here are a few key points this week:
The Biden administration is already starting to talk about the next misguided policy of increasing spending and raising taxes.
And the budget could soon be in even worse shape as the PAYGO rule may be eliminated.
America needs a Responsible American Budget!
And just say no to a carbon tax!
TEXAS OPEN, NOW OPEN AMERICA
Summary of COVID-19 Situation in Texas: TX DSHS Data Here
As of Mar. 21, no Trauma Service Area (TSA) is on Texas Governor Greg Abbott’s watch list, with the statewide rate of hospitalizations at 5.3% ranging from 10.5% in TSA I (El Paso) and 1.0% in TSA C (Wichita Falls).
On March 10, 2021, Governor Abbott implemented Executive Order GA-36, which ordered that on March 10 there are no longer restrictions on business operating capacity and no mask mandate. A county judge has the authority to restrict business capacity of up to 50% only if the COVID-19 hospitalizations as a share of total hospital capacity in that TSA are above 15% for seven consecutive days, but cannot mandate wearing a mask.
EO GA-36 opening Texas is welcome news as the data have been showing substantial improvement in the COVID-19 situation, and freedom is the best way to deal with a pandemic while concentrating resources where they’re needed most without blanket restrictions that have hurt lives & livelihoods.
The next policy step is to promoting and passing pro-growth policies so employers can expand their business, workers can return to work, and families can regain prosperity experienced before the pandemic. TPPF’s Responsible Recovery Agenda would help achieve this through less spending, taxing, and regulating.
This piece by my TPPF colleague Chuck DeVore is worth a read:
Closing Thoughts
Let us focus on these Godly words this week:
And finally, here’s a quote from the great economist Milton Friedman:
Thanks again for reading! If you haven’t signed up for my newsletter yet, please subscribe here at no charge and share with others. Many blessings to you and yours.
Vance Ginn, Ph.D. | www.vanceginn.com | #LetPeopleProsper