Hammond on taxes and government growth
As the preeminent voice for the state’s business community, the Texas Association of Business often hears from employers about the challenges they face in growing their business and adding employees during this particularly difficult time in our state’s history.
Our state and nation are in the midst of an historic, global recession, but there are true glimmers of hope for our state. According to the Texas Workforce Commission’s most recent data, Texas added over 50,000 jobs in the last three months. Our 8.3% unemployment rate, while too high, remains far below the national average.
Despite the tough times, employers remain unwavering in their belief that Texas is best positioned to get out of this Wall Street-created mess sooner than our neighbors across America.
In just a few short years, Texas has become an economic beacon for the nation in large measure because of fiscally conservative leadership in the Legislature.
The business community has thrived in Texas, as we continue to maintain the highest number of Fortune 500 companies in our state than any other. We have been cited by countless publications as having the best business climate and being regarded as the best place in America to do business. Texas had more job growth in 2008 than all other 49 states in America combined.
That being said, a nod from Forbes doesn’t put food on the table for Texas families. The fact remains that men and women are struggling. People are delaying paying certain bills from month to month to make ends meet. Families are tapping into college and retirement funds to pay their mortgage. They are unsure that their representatives are taking care of their needs. And the constant refrain from Washington seems to be “Give us your money, and we’ll do a better job of taking care of your needs than you can.”
Here in Texas, we know that the best thing government can do is to get the hell out of its citizens’ pockets.
To get down to brass tacks, we stand taller than our peers because we keep taxes and spending low. The feedback our Association has received from employers is that Texas is attractive because they have to pay less to the state to make their businesses thrive.
A thriving business is not an extra comma in an executive’s salary. It is the resource that provides families with jobs, and often pays for health insurance and retirement programs. Attracting and retaining companies that employ Texans is job one for the business community.
Toward that end, the Texas Association of Business is proud to support two state constitutional amendments to limit spending growth to correspond with the growth rates of the state’s population and inflation, and require a two-thirds vote of the Legislature to approve all tax increases.
By controlling these two economic factors, we can avoid the disastrous results we have seen in California, whose 20 billion dollar budget shortfall has been caused by spiraling growth in taxes and spending.
We currently have a multi-billion dollar budget surplus. And to face the challenges to come, we must be prepared to fend off foolishly trying to tax and spend our way into a better economy the way that we have seen in Washington D.C. and California.
Taking these important steps will ensure that Texas remains open for business.
