Most politicians, when encountering a budget surplus, quickly find ways to spend the extra money. They begin new programs, or increase existing programs, growing the size of the government. Then, when (not if) revenues fall, they run around claiming they have no money and must raise taxes to balance the budget. Then when revenues go up again, they take the extra money and grow government. It is a never ending cycle of always needing more money and needing to raise taxes. The results are devastating. Just look at California. This is the model California has used for years and has resulted in the complete bankruptcy of the state.
Texas, with the leadership of a true fiscal conservative Rick Perry, is doing it different. When Texas encounters a budget surplus, they save some of the money in a “rainy day” account. They then return some of the money back to the people in the form of tax cuts. Finally, they allocate extra funds to programs they know are increasing (education) because of a growing population. When Texas hits hard times they don’t have to increase taxes, they just use the “rainy day” account.
Don’t think this method is realistic? How about these results:
- Despite the “worst recession since the Great Depression”, Texas will have a 10.7 Billion dollar budget surplus! They are saving 5.7 Billion for emergencies, and returning 3 billion back to the tax payers in tax cuts.
- Business is moving from high tax places like California to Texas. Texas created approximately 70 percent of the jobs created nationwide from Nov ’07 to Nov ’08.
- Unemployment is a full percent lower than the national average
- The states annual growth rate was 2.1% in 2008, the national average was -1.4% (negative growth)
But don’t think you will hear about any of this on the news. We are told everything is hopeless and we must put all our trust in the Federal Government to save us. The answer? More spending and more taxes of course!
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