Monday, January 14, 2019

Texas Businesses Want Taxpayer Money

The Texas Association of Business want to continue the taxpayer funded economic development programs that allow local elected leaders to pick winners and losers by selectively handing out tax breaks. The Austin Statesman has an extensive description of the lobbying agenda of the Texas Association of Business.
One of the major programs — allowing local governments to enter into so-called Chapter 312 agreements to abate property taxes — must be reauthorized by lawmakers in 2019 if it is to continue. 
A similar program allowing school districts to waive portions of a company’s property tax bill - - known as Chapter 313 agreements — survived an effort to kill it during the 2017 legislative session. Such agreements are named for the sections of the state tax code covering them. “We simply have to have” the ability to provide property tax breaks, said Tony Bennett, president of the Texas Association of Manufacturers. “Competition (for projects nationwide) is not going away, and your team has to have everything the other team has” to win. 
Property taxes in Texas are higher than in many competing states, Bennett said, so deals to waive portions of them often just level the playing field. 
Business groups also are advocating to add millions the Texas Enterprise Fund, a deal-closing incentive tool used by the governor’s office as a final carrot to sway corporate decisions. Gov. Greg Abbott secured enough for the fund during the 2017 legislative session to begin the current two year budget cycle with a balance of $150 million — despite an effort by some lawmakers to eliminate money for it altogether — but proponents this year are pushing for a starting point of $200 million. 
Business drives the Texas economy by producing goods and services that people want and need. If they cannot provide them at a profit without taxpayer help, then they are not viable enterprises that deserve to exist. Let free markets determine what is to be produced and sold.

Texas working and taxpaying citizens do not need to subsidize business and they certainly do not need to allow elected officials to pick winners and losers!

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