Texas' Low Tax Policies Are Not Working As Well As Beck Claims
Written by Hardeep Dhillon
Published
In tonight's show, Beck hyped Texas' economy, stating that Forbes “did an interesting analysis of the debt of every state, and they found that Texas has the fourth best situation in the entire country.”
Beck then lauded Texas for its low taxes, its recent AA+ bond rating from Standard and Poor (S&P) and its record on job creation. But he failed to note that that S&P has stated that Texas' “underperforming business tax” will make it “unlikely” for the state “to receive the top AAA rating.” He also did not note that it is really minimum wage jobs that are “sharply on the rise” in the state.
Although Beck cited Texas' AA+ rating from S&P, he neglected to mention that Texas is “unlikely to receive the top AAA rating because lawmakers have not addressed a structural deficit created by an underperforming business tax.” From the Associated Press:
Standard & Poor's gave Texas government bonds an AA+ rating on Thursday and said the state's economy will likely recover quicker than most other states.
The rating determines what interest the state pays and is just short of the top AAA rating. It tells investors that Texas has a very strong capacity to meet its financial obligations.
S&P analysts praised Texas for strong cash-management practices. However, the rating agency warned that the current budget crisis and future demands to pay for public schools could create problems later.
S&P said Texas was unlikely to receive the top AAA rating because lawmakers have not addressed a structural deficit created by an underperforming business tax. The business tax was changed in 2006 and it has failed to meet expected revenue targets ever since.
Moreover, while Beck highlighted Texas' record of job creation and suggested that Texas, not President Obama was responsible for much of the job growth in the country, he did not mention the fact that Texas took money from Obama's stimulus plan.
Furthermore, according to The American Independent, "[w]hile employment in Texas has been slightly more plentiful than in other states during the recession, the number of the lowest-paying jobs has also risen sharply in Texas." The Independent went on to state: “From 2007 to 2010, the number of minimum wage workers in Texas rose from 221,000 to 550,000, an increase of nearly 150 percent.”
Beck has repeatedly drooled over Perry, but perhaps he should do a little more research on Perry's record in Texas.