Posts Tagged ‘Taxes’

California As Saudi Arabia

Tuesday, August 20th, 2024

On Joe Rogan, Peter Thiel has an interesting answer to conservatives wondering why California hasn’t collapsed already: California is essentially Saudi Arabia.

  • Joe Rogan: “California just jacked their taxes up to 14[% at the highest marginal rate], what was it, 14.4[%]?”
  • Peter Thiel: Something like that, yeah. 14.3[%] I think.”
  • JR: “You want more money for doing a terrible job, and having more people leave for the first time ever.”
  • PT: “But it gets away with it.”
  • JR: “I know! People are forced with no choice. What are you going to do?”
  • PT: “There are people at the margins who leave, but the state government still collects more and more in revenues. You get 10% more revenues and 5% of the people leave you still increase the amount of revenues you’re getting. It’s inelastic enough that you’re actually able to increase the revenues.”
  • PT: “This is sort of the the crazy thing about California. There’s always sort of a right-wing or libertarian critique of California that it’s such a ridiculous place, it should just collapse under its own ridiculousness and it doesn’t quite happen.”
  • PT: “The macroeconomics in it are are pretty good. 40 million people, the GDP is around 4 trillion. It’s about the same as Germany with 80 million, or Japan with 125 million. Japan has three times the population of California same GDP means one-third the per capita GDP, so there’s some level on which California as a whole is working, even though it doesn’t work from a governance point of view.”
  • PT: “The rough model I have for how to think of California is that it’s kind of like Saudi Arabia. They have a crazy religion, wokeism in California, Wahhabism in Saudi Arabia. You know not that many people believe it, but it it distorts everything.”
  • PT: “Then you have like oil fields in Saudi Arabia and you have the big tech companies in California, and the oil pays for everything.”
  • PT: “Then you have a completely bloated, inefficient government sector, and you have sort of all sorts of distortions in the real estate market where people also make lots of money, and sort of the government and real estate are ways you redistribute the oil wealth. And that’s the big tech money in California.”
  • PT: “It’s not the way you might want to design a system from scratch, but it’s pretty stable. People have been saying Saudi Arabia is ridiculous, it’s going to collapse any year now. They’ve been saying that for 40 or 50 years. But you know, if you have a giant oil field you can pay for a lot of ridiculousness.”
  • PT: “I think that’s the way you have to think of California. There’s things about it that are ridiculous, but there’s something about it. It doesn’t naturally self-destruct overnight.”
  • JR: “There’s a lot of people that are still generating enormous amounts of wealth there, and it’s too difficult to just pack up and leave.”
  • PT: “I think it’s something like four of the eight or nine companies with market capitalizations over a trillion dollars are based in California: Google, Apple, now Nvidia, Meta…I think Broadcom is close to that.”
  • Thiel also points out the great weather, and notes that there’s no large enough city in a zero income tax state tempting enough (at least for him) to move to. Austin he dismisses because “Austin’s a government town and a college town and a wannabe hipster San Francisco town, so in my books, three and you’re kind of out.”
  • Of course, the big difference between Apple, Nvidia, etc., and Saudi Aramco, is that all those tech companies could still move to another state, as Elon Musk proved by moving much of Tesla and SpaceX to Texas. But that oil isn’t going anywhere until the Saudis (or the western companies they hire) pump it out.

    Also, under Crown Prince Mohammed bin Salman, the Saudis have sidelined the Wahhabist clerics, so that the state religion is moving (if slowly) in a more modern direction.

    Alas, since the pact between Muhammad bin Saud and Muhammad bin Abdul Wahhab dates back to about 1745, this metaphor suggests that wokeism still has a quarter millennium to run.

    Let’s hope that the poisoned cult of social justice has a much shorter stretch until its richly deserved demise.

    Another Texas Sales Tax Holiday Starts Tomorrow

    Thursday, August 8th, 2024

    Another sales tax holiday, this one for back-to-school, starts tomorrow, August 9th.

    The Comptroller encourages all taxpayers to support Texas businesses while saving money on tax-free purchases of most clothing, footwear, school supplies and backpacks (sold for less than $100) during the annual Tax-Free weekend. Qualifying items can be purchased tax free from a Texas store or from an online or catalog seller doing business in Texas. In most cases, you do not need to give the seller an exemption certificate to buy qualifying items tax free.

    This year’s sales tax holiday begins Friday, Aug. 9, and goes through midnight Sunday, Aug. 11.

    The sales tax exemption applies only to qualifying items you buy during the sales tax holiday. Items you buy before or after the sales tax holiday do not qualify for exemption, and there is no tax refund available.

    Qualifying Items

  • Clothing and Footwear
  • Face Masks
  • Backpacks
  • School Supplies

  • So if you need clothes, paper, etc., you can save some money this weekend.

    Texas Election Roundup For April 23, 2024

    Tuesday, April 23rd, 2024

    If you thought “No runoffs in my area, so I don’t have to vote in May,” after the primary election, think again!

  • Come May 4, Texans in large counties have tax appraisal district director elections.

    Many Texans will have their first opportunity to elect representatives to the governing boards of their local appraisal districts, making the agencies that assess property values for tax purposes more accountable to citizens.

    A new property tax relief law, passed last year and approved in November by voters statewide, included a provision for voters in counties with a population of 75,000 or more to elect three new members to their county appraisal district board of directors.

    The three elected board members will serve alongside the five appointed directors and the county tax assessor-collector, who will become an ex-officio board member.

    Directors elected in May will take office on July 1 and serve a term that expires on December 31, 2026.

    Going forward, elected appraisal district directors will be on the ballot in November of even-numbered years and serve staggered four-year terms.

    The five directors appointed by local taxing units (counties, cities, school districts) that participate in the appraisal district will also transition to staggered four-year terms, starting in 2025.

    Property tax consultant Chandler Crouch, who has championed appraisal district reforms for years, told Texas Scorecard, “I believe the legislation that implemented these changes is a direct result of the trouble I’ve experienced and would not have happened if it weren’t for concerned Texans demanding change.”

    Crouch was targeted by his local Tarrant County appraisal district officials after helping thousands of residents protest their property taxes and calling attention to problems within the system.

    In the wake of several scandals, longtime Tarrant Appraisal District Chief Appraiser Jeff Law resigned last September.

    “Over the past few years I’ve seen plenty of corruption at the appraisal district. I believe the problems I encountered would have been dealt with much quicker if we had someone at the appraisal district that was directly accountable to the taxpayers,” said Crouch.

    In addition to adding elected appraisal district directors in the state’s 50 largest counties, the new law puts the directors in charge of appointing members to the appraisal review board.

    The appraisal review board (ARB) is the group of citizens that hears taxpayer protests and resolves disputes between property owners and appraisal districts. Currently, ARB members are appointed by the county’s local administrative judge.

    At least two members of the majority voting for ARB members must be elected directors.

    Any possibility for voters to check tax increases is a good thing.

  • As far as the Williamson Central Appraisal District Board of Directors election, information on these down-ballot races are quite sparse. The candidates are:
    1. Place 1: Hope Hisle-Piper and Jim Buell
    2. Place 2: Mike Sanders and Jon Lux
    3. Place 3: Collin Klein and Mason Moses

    According to this Facebook thread, Buell, Sanders and Klein are running a taxpayer-friendly slate, while Hisle-Piper, Lux and Moses are already appointed members of the board, using a loophole to run for the elected seats. Sanders asserts “If they win, each of them will then hold two positions on the Appraisal Board.” That hardly seems kosher. On that basis, I’m tentatively recommending a vote for Buell, Sanders and Klein, but if you have any countervailing information, please share it in the comments below.

    Note: Early voting for this election has already started and runs through April 30.

  • Travis County also has appraisal district elections, and Don Zimmerman, Matt Mackowiak and Bill May are the obvious choices for conservatives there (though less a vote for May than one against lifetime Democrat Dick Lavine).
  • Both Ted Cruz and Democratic opponent Colin Allred raised around $10 million for their senate race, but Allred has a much higher burn rate.

    The U.S. Senate race in Texas is shaping up to be an expensive bout between Sen. Ted Cruz (R-TX) and Congressman Colin Allred (D-TX-32), with both candidates posting high fundraising totals and the challenger burning through most of his haul.

    Both candidates announced close to $10 million raised in the April quarterly report last week. The two touted the fact that their contributions came from every — or in Allred’s case, almost every — county in Texas. The pair’s average donations were both around $35.

    Cruz reported $15.1 million cash-on-hand at the end of this period — which includes monies raised into the National Republican Senatorial Committee and the Texas GOP itemized for his race — to Allred’s $10.5 million left on hand.

    Cruz’s number is $2.7 million more than he raised in the first two quarters of 2018 combined. Allred’s haul exceeded 2018 candidate Beto O’Rourke’s first-quarter number by close to $3 million.

    Though he posted a record first quarter haul in 2018, the biggest money for Beto’s bid really started flowing in during the spring and summer following the primary; he raised nearly $80 million in that race, and narrowly lost to Cruz, who raised $45 million that cycle.

    Both Cruz and Allred have raised around half of their money in 2024 from within Texas, with big money figures and organizations on both sides of this fight salivating for another high-profile clash. More than 12 percent of Allred’s haul came from California to Cruz’s 32 percent from Virginia, the vast majority of which is due to the GOP’s small-dollar donor interface, WinRed, being headquartered there.

    The Democrats’ version, ActBlue, is headquartered in Massachusetts.

    One of the most interesting factors in these reports is Allred’s burn rate — the amount of money spent relative to what he raised. Allred has plenty of money left over, but he spent 96 percent of his haul, more than two-thirds of which was spent on media advertising.

    I would be lying if I said I was up to date on the latest campaign finance trends, but it’s universally acknowledged that a burn rate that high this far out from the general election is “bad”…

    …and that media buys this far out from the general are fools gold. Maybe Allred thinks he needs to get to the same level of name recognition as O’Rourke did in 2018, but that’s simply not possible. He’d need just as many fawning media profiles as O’Rourke got, and the national media is too busy ramping up the Orange Man Bad machine to do that. This time in 2018, I’d already seen a zillion Beto signs and bumper stickers, and I doubt I’ve even seen five for Allred. And, after all that money and name-recognition, Beto still lost…

    The latest poll on the race from the Texas Hispanic Policy Foundation — which pegged Allred down 5 points to Cruz — showed the challenger with a +24 net favorability rating to Cruz’s +3. However, Allred’s undecided total was 40 points, showing that there are loads of movable voters who could go either way on him; Cruz’s undecided number was 1 percent.

    Polls this early mean very little. But cash on hand is rarely overrated…

  • Can Brandon Herrera take down Tony Gonzales in the runoff?

    In his nascent bid for Congress, Brandon Herrera is putting two things to the test: embattled Congressman Tony Gonzales (R-TX-23), and the ability of next-generation politicians to overcome statements — and jokes — made on social media.

    Known popularly as “The AK Guy,” Herrera is a YouTuber boasting a large following whose schtick is firing cool guns and teaching his viewers about their characteristics and history. His X bio reads, “Congressional Candidate (R TX-23) YouTuber, Second Amendment Absolutist, VERY Politically Incorrect.”

    The field of Republican primary challengers pushed Gonzales to a runoff, with the incumbent falling 4.6 points away from winning the primary outright; Herrera received 24 percent of the vote, finishing a comfortable second place and securing a runoff against the incumbent.

    Now he’s the last man standing between Gonzales and a third term in Congress.

    But standing between Herrera and the upset is the very reason he has such a large following: his irreverent, and very entertaining, streaming persona. Herrera’s YouTube channel has 3.3 million subscribers and the pinned video is him testing out the “magic bullet theory” related to the JFK assassination — namely that the bullet attributed to the president’s death looks as if it didn’t actually hit anything, let alone a human being.

    But it was a different video that caught the attention of his opponent — and a national media outlet.

    “Rep. Gonzales’ right-wing GOP challenger posted videos featuring Nazi imagery, songs, jokes,” reads a headline from the publication Jewish Insider. The video in question is an informational on the MP-40 submachine gun, developed in Germany during the Nazi Third Reich.

    Discussing the gun, Herrera refers to it as “the original ghetto blaster” and then shows a sardonic black and white montage firing the weapon as the German military marching song “Erika” plays.

    “If the MG-42 was Hitler’s buzzsaw, the MP-40 was Hitler’s street sweeper,” he adds.

    At the end of the video, Herrera says of the sarcastic tone and jokes, “The best way to not repeat history is to learn about history. And the best way that I know to get you guys to learn about history, is make really f—– up jokes about it.”

    In acknowledging the “edgy” humor, Herrera unknowingly handed ammunition to his future political opponents — the effectiveness of which remains to be seen and a potential dagger that Herrera brushed aside.

    “Whereas before you have little statements that can be taken out of context or jokes that were made that would tank careers, it’s no longer that way,” Herrera told The Texan in an interview, suggesting the current political climate has passed the point of caring about such remarks.

    “One of the big catalysts for that change was the way that Trump ran his campaign. I think people related to him and people aren’t really afraid to see that side of elected representatives anymore.”

    About the potential shift, Herrera added, “[Candidates] don’t have to be as squeaky clean, and really, fake as they have been in years past. And I think we’re getting closer to an era of real people.”

    “Being representatives now, which I think is going to be a net positive because people are realizing it doesn’t matter what jokes have been made in the past, and it doesn’t matter if your congressman was caught swearing or something like that. People care about how you vote and I think that’s the core of it. And that should be what people vote on.”

    Is a post-Trump disdain for political correctness going to prevent it from being used on other candidates for edgy humor? Maybe. But a bigger problem for Herrera is that he came out of the primary 21 points behind Gonzales. That’s a large gap to make up, especially since Gonzales is out-raising Herrera. Absent dramatic developments, the vote and money gaps may be too big for Herrera to make up between now and May 29.

  • Speaking of gun policies for candidates, Ammo.com has a roundup of ratings.
  • Texas Constitutional Amendment Voting Started Today (With Recommendations)

    Monday, October 23rd, 2023

    Another Constitutional Election Ballot (crappy formatting there, Ballotpedia is upon us, and early voting starts today.

    Here’s Texas Scorecard’s roundup, with input from Texans for Fiscal Responsibility, True Texas Project, and the Huffines Liberty Foundation and links to Texas Legislative Council Analysis of the amendments. The Texan also has a roundup.

    Here’s my quick and dirty list of propositions and recommendations.

    1. Proposition 1 (HJR 126): Protecting the right to engage in farming, ranching, timber production, horticulture, and wildlife management. This is the “right to farm” bill, which provides a bulwark against local, state and federal interference in food-growing activities, such as were messed with by some states during the 2020 Flu-Manchu panic (such as Michigan’s Democratic governor Gretchen Whitmer banning seed sales. And remember, such interference in people growing food on their own land was blessed by the Supreme Court in Wickard vs. Flburn. Recommendation: Vote FOR Proposition 1.
    2. Proposition 2 (SJR 64): Authorizing a local option exemption from ad valorem taxation by a county or municipality of all or part of the appraised value of real property used to operate a child-care facility. Another subsidy for a favored industry. Recommendation: Vote AGAINST Proposition 2.
    3. Proposition 3 (HJR 132): Prohibiting the imposition of an individual wealth or net worth tax, including a tax on the difference between the assets and liabilities of an individual or family. A wealth tax is total commie bullshit. Recommendation: Vote FOR Proposition 3.
    4. Proposition 4 (HJR 2 from the second special session): Authorizing the legislature to establish a temporary limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes; to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads from $40,000 to $100,000; to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts; to except certain appropriations to pay for ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations; and to authorize the legislature to provide for a four-year term of office for a member of the board of directors of certain appraisal districts. Well, that’s a mouthful. I don’t care for the little unrelated special interest payoff shoved in at the end, but do appreciate the tax relief, temporary though it may be. Recommendation: Vote FOR Proposition 4.
    5. Proposition 5 (HJR 3): Relating to the Texas University Fund, which provides funding to certain institutions of higher education to achieve national prominence as major research universities and drive the state economy. Our social justice-infected universities need less money, not more, and if they’re not willing to give up being factories for radical leftwing indoctrination, they need hard reboots. Recommendation: Vote AGAINST Proposition 5.
    6. Proposition 6 (SJR 75): Creating the Texas water fund to assist in financing water projects in this state. While there’s a need for various water projects around the state, “creating fund X administered by agency Y for the benefit of entity Z” type schemes always offer the opportunity of abuse, and the principle of subsidiarity demands that local entities pay for their own damn water projects, not rely on off-general budget slush funds. Recommendation: Vote AGAINST Proposition 6.
    7. Proposition 7 (SJR 93): Providing for the creation of the Texas energy fund to support the construction, maintenance, modernization, and operation of electric generating facilities. While Texas needs more reliable grid, I see nothing about this proposition that would prevent the fund from being used to subsidize more of the unreliable “green” energy lawmakers already seem to love subsidizing. To quote the Huffines Foundation: “Proposition 7 would increase the cost of electricity without improving the reliability of the electric grid. It would also accelerate the trend toward ending market competition and putting Texas politicians and bureaucrats in control of the Texas electricity market. Texans should reject more subsidies for electric generators and let politicians know that grid reliability should be increased by ending renewable energy subsidies.” Recommendation: Vote AGAINST Proposition 7.
    8. Proposition 8 (HJR 125): Creating the broadband infrastructure fund to expand high-speed broadband access and assist in the financing of connectivity projects. More corporate welfare for things the state shouldn’t be subsidizing. Recommendation: Vote AGAINST Proposition 8.
    9. Proposition 9 (HJR 2 from the regular session): Authorizing the 88th Legislature to provide a cost-of-living adjustment to certain annuitants of the Teacher Retirement System of Texas. TFR and TTP came out as neutral. While not philosophically opposed, I suggest voting against until there’s an outside audit to confirm that none of this money is being siphoned off into ESG investing. Recommendation: Vote AGAINST Proposition 9.
    10. Proposition 10 (SJR 87): Authorizing the legislature to exempt from ad valorem taxation equipment or inventory held by a manufacturer of medical or biomedical products to protect the Texas healthcare network and strengthen our medical supply chain. More special interests carveouts. Vote AGAINST Proposition 10.
    11. Proposition 11 (SJR 32): Authorizing the legislature to permit conservation and reclamation districts in El Paso County to issue bonds supported by ad valorem taxes to fund the development and maintenance of parks and recreational facilities. El Paso should pay for it’s parks out of general funds, not bonds, since parks don’t generate revenue to pay back bonds. Vote AGAINST Proposition 10.
    12. Proposition 12 (HJR 134): Providing for the abolition of the office of county treasurer in Galveston County. Normally, I’d be for anything that eliminates a government official. But there’s this from TTP: “AGAINST –The current Treasurer campaigned on a promise to eliminate his position, which prompted this legislative action. Since one less government position means less government, we initially supported this amendment. However, we then heard from many conservative activists in the Galveston area who said they don’t want the position to be dissolved because there will be no more accountability to the office and it will be handed to cronies.” I sort of believe this, since my late uncle (who ran a restaurant there) said Galveston was corrupt from top to bottom. No recommendation.
    13. Proposition 13 (HJR 107): Increasing the mandatory age of retirement for state justices and judges. AGAINST. Turnover at least offers the opportunity of breaking up entrenched power.
    14. Proposition 14 (SJR 74): Providing for the creation of the centennial parks conservation fund to be used for the creation and improvement of state parks. More off-budget shenanigans. Vote AGAINST Proposition 12.
    15. Williamson County early voting locations can be found here. Travis County early voting locations can be found here.

    Texas Mini-News Roundup for July 13, 2023

    Thursday, July 13th, 2023

    Just a quick roundup of Texas news to cut tomorrow’s LinkSwarm down to size, as this is another insane week.

  • Property tax relief is finally heading to Texas Governor Greg Abbott’s desk.

    After months of caterwauling and posturing, the Texas Legislature’s property tax plan ended up about where it began, with additional rate compression, an increased homestead exemption, and an appraisal cap.

    The Texas House and Senate put the final bow on their recently announced deal on property tax relief to put to bed the months-long standoff — after which the pair adjourned sine die for the third time this year. The plan is expected to be signed quickly by Gov. Greg Abbott.

    The toplines of the $13 billion deal are:

    • More than $7 billion to compress school district Maintenance & Operations rates
    • An increase of the standard homestead exemption to $100,000
    • A three-year trial run for a 20 percent appraisal cap on commercial and non-homestead residential properties valued at or below $5 million
    • A $1.47 million increase to the state’s franchise tax exception
    • The creation of three elected positions on Appraisal Review Boards in counties above 75,000 population

    That compression is on top of the $5.3 billion already passed in the 2024-2025 state budget to continue the 2019 reform.

    The new compression and the homestead exemption — should it be approved by voters in November — will be effective this tax year. The appraisal cap will begin next year and run through the end of 2026 unless continued by the Legislature.

    Estimates project the reform will provide a $1,200 “savings” for the average homeowner in Texas — meaning a reduction from what tax bills would yield without the reform, not a reduction from the previous year’s tax bill.

    Good news, if long in coming.

  • You know the “incident” Austin City Council used as an excuse to end DPS patrols? It never happened.

    The City of Austin canceled its recently-resumed partnership with the Texas Department of Public Safety (DPS) on Tuesday after allegations were made that officers pointed a gun at a child during a traffic stop — but DPS has now released body camera footage disputing that claim.

    The patrol partnership that deployed DPS officers throughout the capital city to assist the ailing Austin Police Department was set to resume this month after a May pause to bolster enforcement at the border as Title 42 expired. But city officials — Mayor Kirk Watson and Interim City Manager Jesús Garza — abruptly canceled the partnership on Tuesday.

    The onus for that decision was an allegation made by Carlos Meza and his son Angel that during a Sunday evening traffic stop, DPS officers pointed their sidearms at the child.

    DPS said that did not happen. The agency released three angles of footage of the incident.

  • “Texas Department of Transportation Attempts to Hide DEI-related Records.”

    The Texas Department of Transportation is attempting to withhold documents concerning the agency’s use of materials related to diversity, equity, and inclusion (DEI) and environmental, social, and governance (ESG).

    Responding to a tip from a whistleblower, Texas Scorecard sought agency records that would either confirm or debunk allegations that the agency has been pushing a “woke” agenda on its 12,861 employees.

    Texas Scorecard sent an open records request to TxDOT under the Texas Public Information Act (PIA). This request sought to unveil whether or not TxDOT employees are being paid to discuss such issues.

    Specifically requested were communications referring to DEI and ESG in the possession of the Texas Department of Transportation commissioner, chief of staff, director of human resources, and/or the director of the DEI section.

    Obviously TxDoT must be hiding considerable social justice subversion.

  • “Keller ISD Adopts New Student Pronoun and Bathroom Policy Based on Biological Sex.”

    A northeast Texas school district has adopted new policies related to the continued hot-button topics of restroom accommodations for transgender students and pronoun usage by school employees.

    On June 28, the Keller ISD board of trustees voted 5 to 0 with one abstention to establish a new pronoun policy wherein “district staff, educators, and other district employees shall not promote, encourage, or require the use of pronouns that are inconsistent with a student’s or other person’s biological sex as it appears on the individual’s birth certificate or other government issued record.”

    Additionally, the school district shall not compel any employee or “other students to address or refer to students in any manner that would violate the speaker’s constitutionally protected rights.”

    Prior to the vote, the board engaged in back-and-forth discussion of hypotheticals, such as if a teacher is asked by a student to be referred to by a pronoun that does not correspond with their biological sex.

    “The policy is pretty clear,” board President Charles Randklev said of the hypotheticals. When asked if the trustees will support teachers who might come to them with concerns following the passage of the pronoun policy, he said that “this board has always supported teachers.”

    Randklev added that the new policies “lay the groundwork for protecting kids and educators.”

    “I also think they basically help us get off to a good start for the upcoming school year.”

    The board did pass an additional bathroom policy that will “maintain separate restrooms” based on biological sex, but will make accommodations for students who are “seeking privacy” such as in a single-use bathroom.

    This move by Keller ISD comes on the heels of a federal judge’s ruling in 2022 that Texas had the ability to vacate the Biden administration’s guidance on allowing people to use restrooms based on their gender identity that do not correspond to their biological sex.

    Remember: Keller ISD voters kicked social justice school board members out and took a solid turn toward sanity instead. Elections matter.

  • Meanwhile, La Joya ISD down in RioGrande Valley, which has been pushing DEI, is so scandal-ridden that they’re being taken over by the state.

    A small public school district in the Rio Grande Valley is the latest to face a state takeover under Texas law, but district officials have vowed to fight the Texas Education Agency (TEA) in court.

    Located on the U.S.- Mexico border west of McAllen, the La Joya Independent School District (LJISD) operates 38 schools and serves 24,804 students. However, enrollment has steadily declined over the past decade and the district has been embroiled in multiple scandals.

    After an FBI investigation into corruption in Hidalgo County, five LJISD officials pled guilty last year to federal charges that included theft, bribery, money laundering, extortion, and wire fraud.

    In January 2022, Trustee Armin Garza admitted to participating in a kickback scheme regarding a district energy-saving plan under which he received more than $234,000. Later, central office administrators Luis Morin and Alex Guajardo would both also plead guilty for their part in the conspiracy.

    In a separate case, trustee Oscar Salinas pled guilty to federal extortion charges related to kickback payments he received from contracted vendor L&G Engineering. After discovering that L&G Engineering’s chief operating officer supported a political opponent, Hidalgo County Commissioner Everardo Villarreal, Salinas demanded additional funds and threatened to cancel a contract with Villareal’s wife. When the CEO refused, Salinas voted to terminate the contract.

    Another LJISD administrator, Rodrigo Lopez, pled guilty to federal charges of theft and bribery in August 2022 in relation to contracts for athletic equipment. Lopez also served as the mayor of Penitas, Texas.

    Earlier this year, TEA officials notified La Joya ISD Board President Alex Cantu and interim Superintendent Beto Gonzales that investigators had substantiated allegations related to fraud and violations of conflict of interest and contract procurement laws.

    Those who have been following the blog for a while know that fraud in border school districts and Hidalgo County (still Democratic Party strongholds) has been a recurring theme.

  • NBA power forward Grant Williams choose to sign with the Dallas Mavericks over the Boston Celtics due to tax differences between the two states.

    By approving a new wealth tax last year, Massachusetts voters might have dented the Boston Celtics’ chances of chasing down a National Basketball Association (NBA) championship.

    Grant Williams, a talented power forward drafted by the Celtics in the first round just four years ago, declined to re-sign with Boston this summer. Instead, he’ll be playing next season in Dallas, where his new contract won’t be subject to Massachusetts’ so-called “millionaire’s tax.”

    Williams told The Athletic that his decision to sign a $54 million deal with Dallas over a $48 million offer from Boston was “a little strategic” and that the gap between the two offers was larger than it might seem.

    “In Boston, it’s…$48 million with the millionaire’s tax, so $54 million in Dallas is really like $58 million in Boston,” Williams said.

    In Texas, which has no state income tax, Williams can keep more of his earnings, though it is worth noting that professional athletes unfortunately owe taxes in states where they play road games. His new state’s tax situation gives Williams a nice incentive to move, considering Massachusetts would have taken 9 percent of those earnings—thanks to its 5 percent flat income tax and newly created 4 percent tax on income in excess of $1 million.

    (Hat tip: Dwight.)

  • Abbott Carries Through With Threat, Vetoes Slew Of Bills

    Saturday, June 17th, 2023

    If you’ve read BattleSwarm long enough, you know I view Texas Governor Greg Abbott as a cautious, careful politician. He generally pursues conservative policies, but not with the drive and fervor of, say, Florida Governor Ron DeSantis. The bussing illegal aliens to blue cities ploy was a welcome departure from Abbott’s caution, but here too his sentiment trailed rather than lead conservative consensus.

    But it appears that Abbott has finally found the issue he’s willing to play hardball on: Property tax reform.

    fter Gov. Greg Abbott indicated Wednesday he could veto a large number of bills if no compromise is reached between the House and Senate on property tax relief, Lt. Gov. Dan Patrick says Abbott is threatening to destroy the work of the legislature.

    Abbott made his comments during a bill signing ceremony on Wednesday, with just days left until Sunday, June 18—the last day he can sign bills into law or veto them. In Texas, any legislation not specifically vetoed by the governor becomes law.

    There were 4,550 pieces of legislation passed by the Texas House and Senate and sent to the governor as part of the 88th Session of the Legislature. As of Wednesday night, Abbott had signed 873 pieces of legislation into law and vetoed five.

    “As we get closer and closer to this Sunday, all of these bills that have yet to be signed face the possibility, if not the probability, that they’re going to be vetoed,” said Abbott.

    Abbott has called for all of the $12 billion currently allocated to property tax relief to be used for compression—or buying down local school property taxes. While the House approved this plan on the first day of the current special session, Patrick and the Senate have stood firm in their desire for some of the money to be used to increase the homestead exemption. According to Patrick, this is a way to prioritize relief for homeowners over businesses.

    “In a ploy to apparently get his way, Governor Abbott suggests he is threatening to destroy the work of the entire 88th Legislative Session – hundreds of thousands of hours by lawmakers doing the work the people sent us to do,” wrote Patrick on Twitter.

    I usually back Patrick over Abbott, but looking at the list of bills he’s vetoed, I can’t say I’m broken up over them. (Some snippage for brevity.)

    SB 2613
    Author: Sen. Tan Parker (R-Flower Mound)
    Sponsor: Rep. Lynn Stucky (R-Denton)
    Caption: Relating to the creation of the Tabor Ranch Municipal Management District; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes; granting a limited power of eminent domain.
    Veto Date: June 16
    Abbott’s statement: “While Senate Bill No. 2613 is important, it is simply not as important as cutting property taxes. At this time, the legislature must concentrate on delivering
    property tax cuts to Texans. This bill can be reconsidered at a future special session only after property tax relief is passed.” [Most of Abbott’s veto statements for subsequent bills are of the “X is important, but not as important as cutting property taxes” formulation, so I’ve snipped those.-LP]

    SB 2605
    Author: Sen. Pete Flores (R-Pleasanton)
    Sponsor: Rep. Brad Buckley (R-Killeen)
    Caption: Relating to the creation of the Knob Creek Municipal Utility District of Bell County; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.
    Veto Date: June 16

    SB 2598
    Author: Sen. Angela Paxton (R-McKinney)
    Sponsor: Rep. Frederick Frazier (R-McKinney)
    Caption: Relating to the creation of the Honey Creek Improvement District No. 1; providing authority to issue bonds; providing authority to impose assessments and fees.
    Veto Date: June 16

    SB 2597
    Author: Sen. Brandon Creighton (R-Conroe)
    Sponsor: Rep. Cecil Bell Jr. (R-Magnolia)
    Caption: Relating to the creation of the Montgomery County Municipal Utility District No. 237; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.
    Veto Date: June 16

    SB 1979
    Author: Sen. Bryan Hughes (R-Mineola)
    Sponsor: Rep. Caroline Harris (R-Round Rock)
    Caption: Relating to an annual study by the Texas A&M University Texas Real Estate Research Center of the purchase and sale of single-family homes by certain institutional buyers.
    Veto Date: June 16

    SB 2616
    Author: Sen. Judith Zaffirini (D-Brownsville)
    Sponsor: Rep. Maria Luisa Flores (D-Austin)
    Caption: Relating to the creation of the Travis County Municipal Utility District No. 27; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.
    Veto Date: June 16

    SB 2604
    Author: Sen. Boris Miles (D-Houston)
    Sponsor: Rep. Senfronia Thompson (D-Houston)
    Caption: Relating to the creation of the Harris County Municipal Utility District No. 589; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.
    Veto Date: June 16

    SB 2453
    Author: Sen. Jose Menendez (D-San Antonio)
    Sponsor: Ana Hernandez (D-Houston)
    Caption: Relating to certain regulations adopted by governmental entities for the building products, materials, or methods used in the construction of residential or commercial buildings.
    Veto Date: June 16

    SB 2379
    Author: Sen. Charles Schwertner (R-Georgetown)
    Sponsor: Caroline Harris (R-Round Rock)
    Caption: Relating to aquifer storage and recovery projects that transect a portion of the Edwards Aquifer.
    Veto Date: June 16

    SB 2260
    Author: Sen. Cesar Blanco (D-El Paso)
    Sponsor: Rep. Toni Rose (D-Dallas)
    Caption: Relating to management review of certain investigations conducted by the Department of Family and Protective Services.
    Veto Date: June 16

    SB 2052
    Author: Sen. Robert Nichols (R-Jacksonville)
    Sponsor: Rep. Trent Ashby (R-Lufkin)
    Caption: Relating to permit fees for groundwater wells imposed by the Southeast Texas Groundwater Conservation District.
    Veto Date: June 16

    SB 1712
    Author: Sen. Charles Perry (R-Lubbock)
    Sponsor: Rep. Drew Darby (R-San Angelo)
    Caption: Relating to the purchase, sale, or lease of real property on behalf of a limited partnership or a limited liability company.
    Veto Date: June 16

    SB 1568
    Author: Sen. Donna Campbell (R-New Braunfels)
    Sponsor: Rep. Matt Shaheen (R-Plano)
    Caption: Relating to the persons authorized or appointed to exercise the power of sale under the terms of a contract lien on real property.
    Veto Date: June 16

    SB 1431
    Author: Sen. Chuy Hinojosa (D-McAllen)
    Sponsor: Rep. Bobby Guerra (D-Mission)
    Caption: Relating to the confidentiality of certain information for a current or former administrative law judge for the State Office of Administrative Hearings.
    Veto Date: June 16

    SB 526
    Author: Sen. Royce West (D-Dallas)
    Sponsor: Rep. David Cook (R-Mansfield)
    Caption: Relating to requiring prior approval by the Texas Higher Education Coordinating Board to offer a degree or certificate program to certain persons who are incarcerated or subject to involuntary civil commitment.
    Veto Date: June 16

    SB 485
    Author: Sen. Nathan Johnson (D-Dallas)
    Sponsor: Tom Oliverson (R-Cypress)
    Caption: Relating to designating the second Saturday in October as Hospice and Palliative Care Day.
    Veto Date: June 16

    SB 361
    Author: Sen. Sarah Eckhardt (D-Austin)
    Sponsor: Rep. Hugh Shine (R-Temple)
    Caption: Relating to the eligibility of a person employed by a school district as a teacher to serve on the appraisal review board of an appraisal district.
    Veto Date: June 16

    SB 348
    Author: Sen. Drew Springer (R-Muenster)
    Sponsor: Rep. Morgan Meyer (R-Dallas)
    Caption: Relating to the prohibition on posting on the Internet information held by an appraisal district regarding certain residential property.
    Veto Date: June 16

    SB 315
    Author: Sen. Bob Hall (R-Edgewood)
    Sponsor: Rep. Ana-Maria Ramos (D-Richardson)
    Caption: Relating to the definition of telephone call for purposes of regulating telephone solicitations.
    Veto Date: June 16

    SB 267
    Author: Sen. Phil King (R-Weatherford)
    Sponsor: Rep. Dustin Burrows (R-Lubbock)
    Caption: Relating to law enforcement agency accreditation, including a grant program to assist agencies in becoming accredited.
    Veto Date: June 16

    SB 247
    Author: Sen. Carol Alvarado (D-Houston)
    Sponsor: Rep. Mary Ann Perez (D-Houston)
    Caption: Relating to specialty license plates issued for honorary consuls.
    Veto Date: June 16

    SB 1080
    Author: Sen. Lois Kolhorst (R-Brenham)
    Sponsor: Rep. Stan Gerdes (R-Smithville)
    Caption: Relating to a mitigation program and fees for the Lost Pines Groundwater Conservation District.
    Veto Date: June 15

    SB 2493
    Author: Sen. Mayes Middleton (R-Galveston)
    Sponsor: Rep. John Bryant (D-Dallas)
    Caption: Relating to repairs made pursuant to a tenant’s notice of intent to repair and the refund of a tenant’s security deposit.
    Veto Date: June 15

    SB 1998
    Author: Sen. Paul Bettencourt (R-Houston)
    Sponsor: Rep. Hugh Shine (R-Temple)
    Caption: Relating to the calculation of certain ad valorem tax rates.
    Veto Date: June 15
    Abbott’s statement: “Senate Bill No. 1998 requires data reporting on property taxes, but does nothing to cut property taxes. This bill can be reconsidered at a future special session only after property tax relief is passed.”

    HB 2879
    Author: Rep. Tom Oliverson (R-Cypress)
    Sponsor: Sen. Paul Bettencourt (R-Houston)
    Caption: Relating to venue in certain actions involving a contract for an improvement to real property.
    Veto Date: June 15
    Abbott’s statement: “House Bill No. 2879 would insert the government into private negotiations involving the work of contractors, subcontractors, and materialmen. Laws about venue selection are simply not as important as cutting property taxes. This bill can be reconsidered at a future special session only after property tax relief is passed.”

    HB 2138
    Author: Rep. Kyle Kacal (R-College Station)
    Sponsor: Sen. Paul Bettencourt (R-Houston)
    Caption: Relating to the sale of charitable raffle tickets by certain nonprofit wildlife conservation associations.
    Veto Date: June 15
    Abbott’s statement: “Though House Bill No. 2138 would expand gambling for a worthy cause, our oath obliges us to take a second look at statewide sales of online raffle tickets so that they do not run afoul of Article III, Section 47(d) of the Texas Constitution. Laws authorizing online raffle ticket sales are simply not as important as cutting property taxes. This bill can be reconsidered at a future special session only after property tax relief is passed.”

    HB 4158
    Author: Rep. Mike Schofield (R-Katy)
    Sponsor: Sen. Paul Bettencourt (R-Houston)
    Caption: Relating to the determination and reporting of the number of residence homesteads of elderly or disabled persons that are subject to the limitation on the total amount of ad valorem taxes that may be imposed on the properties by school districts.
    Veto Date: June 14
    Abbott’s statement: “House Bill No. 4158 appears to require more paperwork about property taxes, but does nothing to cut property taxes. This bill can be reconsidered at a future special session only after property tax relief is passed.”

    SB 467
    Author: Sen. Paul Bettencourt (R-Houston)
    Sponsor: Rep. Jeff Leach (R-Plano)
    Caption: Relating to increasing the criminal penalty for the offense of criminal mischief involving impairment of a motor fuel pump.
    Veto Date: June 14
    Abbott’s statement: “Senate Bill No. 467 would impose a harsher sentence for tampering with a gas pump than for damaging the electric grid or cutting a livestock fence. This bill can be reconsidered at a future special session only after property tax relief is passed.”

    SB 2035
    Author: Sen. Paul Bettencourt (R-Houston)
    Sponsor: Rep. Giovanni Capriglione (R-Southlake)
    Caption: Relating to the issuance of certain anticipation notes and certificates of obligation.
    Veto Date: June 13
    Abbott’s statement: “Senate Bill 2035 has too many loopholes. This bill can be reconsidered at a future special session only after property tax relief is passed.”

    (My apologies for your eyes glazing over skimming reading that.)

    I’m split between my admiration for Abbott having the balls to veto these bills, and the lazy and generally false statement of saying “X is important, but not as important as property tax relief,” given that most of these bill are not very important at all, save to a few special interests. Some of them, such as SB 2453, should have been vetoed on its merits for the government sticking their nose where it doesn’t belong. Without reading the full texts of each and every bill (not my job, because I’m not Governor of Texas), almost all the one with Democratic sponsors seem like they should be vetoed on the merits, and the rest seem pretty special-interest geared. At a glance, the only veto I actually disagree with is SB 467, because gas pump skimmers have recently become a big fraud vector.

    But Abbott is right on one big issue: The 88th Texas Legislative Session should have spent the time to pass property tax relief, an issue that directly impacts the pocket books of millions of Texas homeowners. I have not researched the issue enough to determine whether compression or a raising the homestead exemption are more desirable. Abbott and the Texas Public Policy Foundation favor compression, while Patrick favors raising the homestead exemption. Though I can well understand his rejecting House Speaker Dade Phelan’s “let’s pass this and adjourn so you have to accept our bill without negotiation” tactic.

    But I’m not upset with Abbott’s vetoes. He should have done a lot more of them, a lot earlier on, to cut down on the growth of government spending and regulation.

    Abbott Gets His Slush Fund Back

    Saturday, June 10th, 2023

    Remember the old Chapter 313 program Texas used to dole out incentives to favored companies to relocate to Texas? It’s back under a new name.

    House Bill 5, which author State Rep. Todd Hunter (R–Corpus Christi) calls the “Texas Jobs, Energy, Technology, and Innovation Act,” would create a new statewide economic incentive program to replace the state’s controversial Chapter 313 program, which ended after lawmakers declined to renew it during the 2021 legislative session.

    Although both the Republican Party of Texas and the Democrat Party of Texas oppose corporate handouts in their platforms, State Sen. Charles Schwertner (R–Georgetown), has said “the majority of the Legislature does see value in a job-creating, economy-growing incentive program.”

    HB 5 was a priority of House Speaker Dade Phelan (R–Beaumont) and approved by a vote of 120-24 in the House and 27-4 in the Senate.

    However, Jeramy Kitchen, executive director of Texans for Fiscal Responsibility told Texas Scorecard the new law is a “contradiction and nothing more.”

    “On one hand, he is telling Texans that he wants to see historic property tax relief and the elimination of the property tax, or more specifically the school M&O portion of the property tax,” explained Kitchen. “Both of those are things that TFR supports and encourages the legislature to take action on.”

    “His signing of House Bill 5 however, points to a contradiction, as it ultimately will do nothing more than burden those same individual property taxpayers he purports to provide historic relief to, as large qualifying corporations receive a property tax abatement under the guise of economic development,” said Kitchen.

    Like Chapter 313, HB 5 allows businesses to apply for a 10-year abatement—or reduction—of school district property taxes, which the state pays instead. To receive an abatement, the business would have to show it plans to hire a certain number of employees earning above-average wages for its particular industry.

    Unlike the previous incentive program, HB 5 requires not just the applicant and school district to agree to the abatement, but also the comptroller, governor, and a seven-member legislative oversight committee composed of lawmakers from the state House and Senate.

    This committee would have the final say on approving proposed projects and would provide periodic recommendations to the Legislature regarding which types of projects should be considered.

    The problem with the old program was that it let government use taxpayer money to pick winners from the politically connected. Abbott has wanted the restoration of his economic incentive “carrot” ever since it expired. The new law even creates another level of politicos for businesses to suck up to get tax rebate goodies, and I bet competition to get assigned to that new “oversite committee” will be fierce.

    The old program probably did incentivize a few edge-case businesses to move to Texas who wouldn’t otherwise, but Texas’ low-tax, low-cost and business-friendly regulatory environment already provides plenty of incentives to move here, as evidenced by the fact that businesses kept relocating here even in their absence.

    At least there’s one improvement in the new version: “After Chapter 313 received much criticism for its funding of “renewable energy” projects, which Texas Scorecard previously examined in an extensive investigation, lawmakers also blocked such industries from receiving taxpayer funding through HB 5.”

    Taxpayers are better served by keeping their own money than theoretically enjoying the down-the-line economic benefits of government functionaries showering their money on corporate welfare for businesses willing to do the requisite sucking-up to political figures in order to get paid to move here.

    8 Californians Who Left For Texas Say Why

    Saturday, May 27th, 2023

    Californians continue to flee the no-longer golden state, and many of them end up in Texas. ABC7 News in the bay area interviewed eight who fled as to why California dreaming has become a nightmare.

    Some takeaways:

  • “In the span of two years, California’s population has dropped by more than a half million people.”
  • “I was assaulted twice on the BART.”
  • “I’ve never had a house this large in my life.”
  • “It is definitely a lower cost of living in Texas.”
  • “The home that I once remembered and knew back in the 1980s and the 1990s, a lot of that’s gone now.”
  • “Home prices are lower [in Texas], and there’s plenty of job opportunities.”
  • The former mayor of Ventura, CA moved to Texas in 2014. “One of the things I greatly fear about Venture and elsewhere in coastal California is that it’s not a place for everybody anymore, and especially not a place for young families. It’s a place basically where older, affluent people now live. And I think something has really been lost there.”
  • “Home prices in Texas cost less than half of homes in California. U.S. Census Bureau numbers show that the middle and lower classes are leaving California at a higher rate than the wealthy.”
  • “Many who have left in recent years say they simply couldn’t afford to stay.”
  • A mother with six kids says it’s simply impossible to afford a house large enough in California. “I feel like the California Dream was the American Dream in my grandparents’ and parents’ era. That’s just not possible for our generation to live that American Dream in that state anymore. It’s so expensive that you’re struggling every month just to get by and pay your rent and your mortgage and put food on the table.”
  • Food truck owner: “The reason why I left California, honestly, is just the cost. The cost of living, the cost of running a business, regulations.”
  • Mention of the Move to Texas Facebook group for Californians looking to get the hell out of their failing state.
  • “Some people are moving to Texas because of their conservative values.”
  • ” It seems that the environment, politically in California, has just been a one-party rule. Republicans have done absolutely nothing to change anything in any way, it seems to me. They’ve been cowardly about it.”
  • “It’s very sad in Contra Costa County. You can’t even be conservative. You kinda have to hide if you’re conservative almost.”
  • Man whose family moved to California from South Korea in the 1970s: “Unfortunately my parent’s grocery stores were burned down in the L.A. riots, two of them, near Koreatown. And so that was, you know, quite a traumatic experience for my family.”
  • “I definitely think [California] is mismanaged. We moved primarily because of the crime. And, for me, it was not only the crime but also, you know, the amount of homelessness, needles. I was assaulted twice on the BART. Those particular assaults I really do think it had to do with the same kind of violence that I saw in the Bay Area towards Asian Americans.”
  • “I miss the ocean but not enough to move back.”
  • What would it take to move back to California? “Number one, the whole state would have to clean up. Get some of those rotten politicians. Be tough on crime again, like you should. People’s attitudes would just have to change. But for the most part, I really am happy here.”
  • “My commute is seven minutes to work.”
  • “Yeah, we definitely have not even contemplated moving back. We are just really happy out here.”
  • One party Democratic rule has hollowed out the state of California, and the people Democrats used to claim to represent (the working poor and the middle class) are the ones most harmed by the graft, corruption, incompetence, and radical social justice-engendered spiraling crime rates.

    Until that changes, expect people to continue to flee California.

    How California Destroyed Its Middle Class

    Saturday, May 13th, 2023

    The decline of California under one-party Democrat rule has been one of the long-running themes of this blog. Today Victor Davis Hanson discusses how California’s wealthy destroyed the middle class with policies whose baleful effects they knew wouldn’t fall on them.

  • “The irony is that, as we created more wealth and more leisure, because of the very success of the middle class citizen, the middle class citizen and his central role in western government was forgotten.”
  • “California in the 1960s had the largest middle class in the United States. California had the finest educational system. California invented the idea of a modern freeway and a modern airport.”
  • “California had a state where two-thirds of the people lived with one-third of the precipitation, and yet they built the greatest transference of water with reservoirs and aqueducts the world had ever seen.”
  • “California had the most successful oil, timber and mineral industries in the world. They had some of the finest universities…Again this was a product of, both democratic governors and Republican governors.”
  • “However, today when we look at California, it’s got the highest number of homeless people in the United States. Half of all of America’s homeless live in California.”
  • “One-third of all the welfare recipients in the United States live in California. One-fifth of all Californians live below the poverty line.”
  • “California yet has the highest taxes in the country in the aggregate, the highest property taxes because of the enormous assessed evaluations…highest sales tax at over 10 to 11%, highest income tax at up to 13.2%.”
  • “The result of all of that that is is the middle class finds itself unable to pay and be competitive with other businesses in other states.”
  • “They look at all of these higher taxes, and they say themselves ‘I’m willing to pay it if I’m economically viable,’ but the regulations that the state creates fall heavily on the small farmer, the hardware store owner, the tire [store?] owner, but not necessarily on the Silicon Valley corporation that has an array of lawyers, or legal teams, or analysts, or economists, that find ways not to pay it.
  • “And so the middle class leaves, they vote with their feet they go to places where it’s more conducive for middle class livelihoods. We’ve lost somewhere between 8 and 12 million people of the middle class.”
  • At the same time, America has allowed in 20 million illegal aliens, half of which have ended up in California.
  • “We have not built an aqueduct in California in about 40 years. The schools that were rated in the top 10 percent of comparative state rankings are now in the bottom 10 percent. The airports are decrepit.”
  • “That the more taxes I pay, the worse schools I get.”
  • “In this period, there was about five trillion dollars in market capitalization that grew out of Silicon Valley alone. And we created sort of a medieval caste, a wealthy caste of Barons and Lords that were not subject to the consequences of their own ideology. So they had so much wealth they felt they were exempt from worries about taxation.”
  • “We created a very, very wealthy elite that was not subject to the consequences of their own ideology.”
  • Whether out of virtue signaling and guilt, or whether out of contrived political necessity, they made a political alliance with the very poor of California. And the poor said “Give us more entitlements, tax the middle class, transfer that money to us we need it.” And the wealthy said “Yes, we will open the borders. We’ll transfer money, but you have to vote for issues that we’re in favor of. And we’re in favor of them precisely because they don’t affect us.”

  • And of course, the left’s disdain for the middle class shows up in their language: They’re the “bitter clingers,” the “deplorables,” the “chumps and dregs of society.”
  • “Muscular labor was no longer essential to the American experiment. In other words, you could make have things made overseas in China or southeast Asia or Mexico. And the great middle class territory of the middle west of the United States—Michigan, Ohio, Illinois, Indiana—started to become hollowed out.”
  • “We’ve taken the middle class, the backbone of citizenship, and we’ve eroded it and destroyed it.”
  • Score One For Gary Gates

    Tuesday, May 2nd, 2023

    If you’re a longtime BattleSwarm reader, then you know that I’ve been pretty critical of Republican State Representative Gary Gates of Richmond. Before winning Texas House District 28 to fill the unexpired term of John Zerwas in 2019, Gates was best known as a seven-time loser, his most prominent flame-out being an underhanded, dishonest campaign against Wayne Christian for Railroad Commissioner in 2016. Before that he was behind the suspiciously squishy (and now apparently moribund) Texas Citizens Coalition. More recently he’s played footsie with the social justice set by voting for a bill to create an Office of Health Equity within the Texas Department of Health and Human Services.

    So Gates has done little to endear himself to me. But recently he did good by cracking down on “affordable housing” tax giveaways.

    Rep. Gary Gates (R-Richmond) took to the back microphone this week to make the case for greater regulation of a controversial state program offering millions in tax exemptions to developers for affordable housing.

    One of several lawmakers to propose reforms to the Public Facility Corporation (PFC) program, Gates had introduced a reform bill with tough standards, but allegedly former Speaker Dennis Bonnen repeatedly pressured him to drop his proposals.

    Gates told The Texan he was urged by Bonnen to sign on to arguably weaker reforms authored by Rep. Jacy Jetton (R-Richmond) — House Bill (HB) 2071 — and warned that although his own legislation had been approved by the House Committee on Urban Affairs, it would be killed in the powerful Calendars Committee.

    Instead, Gates successfully tacked on multiple amendments to HB 2071 during Tuesday’s floor session.

    “I’m pleased with these amendments, but I still have my own PFC reform bill, HB 3568, which I hope to get to the floor in short order. It has 69 authors and co-authors, while HB 2071 had only 10.”

    Under the PFC program, local government officials may offer a 100 percent tax exemption to developers who build or purchase multifamily housing, as long as some rental units are set aside for “affordable” reduced rent. But both Jetton and Gates acknowledged there have been abuses of the system; in some cases, PFCs have been authorized with only 10 percent of units designated for low-income families.

    On the House floor, Gates queried Jetton about whether his reforms set new minimum standards and noted that the current system took tax revenue from public school districts without their approval. He also pointed out that in some cases developers were already charging below-market rents before transitioning to PFC status and were therefore not obligated to demonstrate a public benefit.

    “This is hurting our schools, this is hurting our counties and our cities,” said Gates. “This [tax revenue] is being taken from our fire departments, our police departments, our neighborhood schools. They are getting their taxes wiped out and we can’t determine if there’s any public benefit.”

    In response to Gates’ questions, Jetton acknowledged that other taxpayers or the state’s general funds would have to make up the loss in revenue to school districts.

    Gates’ first proposed amendment, opposed by Jetton, mandates that 60 percent of the developer’s tax savings must be dedicated to reducing rents. It was approved in a bipartisan vote of 87 to 54, with two members registered as “present, not voting.”

    Under the formula, 12 percent of units must be set aside for those earning 50 percent of the Area Median Income (AMI), 12 percent for those at 60 percent AMI, and 12 percent at 80 percent AMI.

    After the House voted for a second Gates amendment requiring approval from counties and school districts for any new PFCs, Jetton gave up his opposition and accepted four more revisions as friendly amendments.

    Noting that some PFCs had been granted 100 percent sales and property tax exemptions for up to 99 years, Gates also questioned Jetton about HB 2071’s language setting a minimum tax exemption period of 10 years while removing even the 99-year limit.

    Among revisions accepted by Jetton, the tax-exempt status will be limited to 12 years for new construction and 10 years for the conversion of existing properties.

    So one cheer for Gary Gates for getting rid of a tax kickback.

    Ideally, government should get entirely out of the business of giving different types of tax breaks for different rental housing. Get out of regulating any but the most essential safety and business standards and let the free market come up with solutions. The main obstacles to building actual affordable housing are too many regulations, not too few.

    But we shouldn’t disdain even baby steps of reform in the right direction.