Boom-Towning the US – Economic One-Upsmanship by Texasizing

Good morning readers.  Thanks for coming by for a read this morning.

When the neighbor from up the hill described a business boom going on around Edinburg, Texas, [his previous home] the other evening it got me wondering why.  According to him, the entire Texas coastline is a beehive of manufacturing concerns, either operating, or under construction.  Even a Chinese owned gigantic steel plant.

After considering why this might be for a couple of days I concluded there’s a middling chance the Texas tax structure’s probably a major piece of it.  Texas doesn’t have a State Income Tax.  It relies almost entirely on sales taxes and property taxes for revenues.

That mightn’t sound too important at first notice.  But consider the implications more closely. 

  • First, workers employed in Texas can enjoy a higher take-home pay than those employed in states where income taxes are the revenue source.  This allows employers to pay the employees less than they’d have to do elsewhere.  Workers pay more when they spend their checks on consumer goods, but it doesn’t come out on profit and loss statements of the companies paying them.
  • Secondly,  CEOs, plant managers, high-ranking professionals living within the State, but who enjoy salaries high enough for investments of their incomes pay taxes only on their property holdings and consumer purchases.  Same as the legion of minimum-wage workers they employ.
  • Thirdly, all the nearby suppliers of raw materials, parts and labor for the industries enjoy the same tax-free status and are almost certainly able to offer their products and services more cheaply than they could do located in areas where State Income Tax exists.

For states with stagnant economies, especially those with coastal port facilities, but not limited to those, seems to me the answer might be to take a page from the Texas book.  The most immediate and obvious answer would be eliminating state income taxes and making it up in sales and property taxes.  But that would take a while.  Meanwhile, Texas booms and everyone else continues to lose jobs.

Naturally each situation would require site-specific solutions for immediate competition with Texas for new industries.  But several options come to mind:

  • Locate your port facilities here and we’ll do whatever’s needed to make absolutely certain your construction costs are lower than they’d be in Texas.  Whatever corners Texan regulators would allow you to cut in construction, environmental and safety standards, our regulators will allow more.
  • We’ll reduce our spending on our State vehicle fleets by putting a moratorium on buying any new vehicles for five years.  That money will be delivered in suitcases full of un-marked $100 bills to the people charged with the decision for your location.
  • We’ll make special interim provisions in our income-tax laws exempting dividends to stockholders, CEO and other high ranking professional employees from our State Income Tax.
  • We’ll lower our minimum wage to lower-level employees to the Texas minimum wage, minus the amount of the State Income Tax.  That will allow you to hire minimum wage-earning workers at the same rate it would cost you if you’d located in Texas.
  • We’ll overlook any hiring of illegal aliens you might do involving jobs good Americans don’t want.  Outdoors, heavy-lifting, that sort of thing.
  • We’ll provide lists of the names and families of all your high-ranking employees to all law enforcement agencies and prosecutors and provide a GET OUT OF JAIL FREE card for each family member.  If you, or family members are busted for illegal drug possession we’ll make certain the arresting officers are suspended or otherwise punished.  Your executive employees will enjoy the same privileges in that regard as any State, local, or Federal politician.
  • If your executives are non-white, non-Anglo, non-protestant they’ll never overhear themselves referred to at the country club as Chinks, slopeheads, zipperheads, Mescins, mackeral-snappers, ragheads, camel jockeys, or sand niggers, as they certainly would in Texas.

Naturally they’d have to develop other business-friendly encouragements over time, but those would, at least open the door for a beginning.

Old Jules


11 responses to “Boom-Towning the US – Economic One-Upsmanship by Texasizing

  1. The only flaw in the plan is people who own property wind up shouldering the burden for everyone else. We used to live in “beautiful, tax-free, New Hampshire” where there was no sales tax and no state income tax but property tax was astronomical. Mind you, I have no interest in owning a piece of the planet so it didn’t really affect me too much and I did enjoy having that extra take home, which I saved.

  2. Thanks a lot, Jules. The fat cats don’t need any damn more help raping the workers.

  3. ADD YOUR VOTE TO THE TEA PARTY AND STOP ILLEGAL IMMIGRATION AND OTHER FINANCIAL ISSUES.If you read about the issues covering everybody’s lives in the United States of America, it illustrates the dimensions of complete indifference to many major concerns which includes illegal immigration. Nothing is being constructed in the way of bills, to get us out of the extreme mess. The do and don’ts are easily perceived, which includes the closing of immigrant and migrant entry ports along our Southern border. When we have illegal aliens, minor criminals or not and those smuggling drugs into America, along with floods of the poor people attracted by both political parties, which is unfortunate for low income American labor. Then we have Obama’s boys genuflecting to the environmental zealots, and the green dream that has become a nightmare for average Americans who are paying high prices for gas, to commute to work, when an administration is bypassing the working people of this country, when we have an abundance of energy just below the ground of oil, natural gas and even coal.

    We have a supply that is almost inexhaustible from “The People’s lands”. Yet however we are being starves from these deposits, by radical groups of environmentalists. Mitt Romney will open the spigots so energy flows freely, and not only will reduce the U.S. Treasury deficit of $16 trillion dollars, but we have enough over to sell to our friends abroad. Subsequently over time we can slowly insist the energy companies to develop new methods of cleaning their energy products.

    The TEA PARTY is the only true way to invest in the future America, along with a few morally upright Democrats and Republicans. So much needs to be done, since we have been betrayed by both parties. The political issue that is ordained to be of paramount importance to citizens is the illegal immigration storm. Although the overall economy and jobs maybe at the top of the list, it is connected to illegal aliens coming through our borders, or just overstaying visitors or tourist visas. So many problems are associated by the unfettered movement throughout this sovereign nation that our financial system is affected by people with no status? The courts have determined we must give them free health care and this has accelerated under Obamacare, as it will surely attract more people from every country, who can afford an airline ticket?

    Not forgetting the mass surge from central and South America who are already crowding the frontier towns in Mexico and is an imminent disaster. These are unfunded mandates of Education for foreign kids and medical treatment for the whole extended family, as they use the smuggled child as a ‘foothold’ to gain entrance to America. States forfeit their rights as we have seen in the intimidation of frantic states trying to survive the illegal immigration invaders. Arizona has been hit the hardest as they are the first stop once slipping by the U.S. border Patrol and the radical illegal immigration organizations that are trying to distort the law. With the backing of the ACLU (created by Communists) and other advocacy groups, who are for open border, believing that we should house, medicate and educate every impoverished individual claiming some right to be here.

    THIS COUNTRY DOES NOT HAVE FINANCES TO SUPPORT THE MILLIONS OF PEOPLE WHO WANT TO COME HERE; LET ALONE THE 20 MILLION ALREADY LIVING HERE USING STOLEN IDENTIFICATION DOCUMENTS. Many states are weighted down Liberal assemblies, such as the spotlighted state of California, shuddering from job losses and an economy that’s failing, with the chance of filing bankruptcy. Illegal Immigration has been costly situation that for decades has doubled, tripled into the millions, that state taxpayers are forced to pay, with no relieve is sight—and never will under the intense influence of either the Democrats, Republicans and in certainly not the Liberals and their agenda of political correctness.

    Then what about the war in Afghanistan, fighting the Taliban? After 10 years what have we accomplished? Nothing! Over 2000 American troops have given their lives, and we are sending 8 billions of dollars a month to a very corrupt government. Like most of
    the Middle East they are still living under archaic laws, where women have no rights. This is disgusting and morally wrong. Lets bring our brave troops home and spend our money on a deteriorating infrastructure of roads, bridges, tunnels Let’s spend our money on a real border fence and a National Guard fully armed to halt the drug cartels, and the never ending stream of criminals and illegal aliens. The billions of dollars spent on protecting other countries, should go to our elderly folk, our homeless and our military when they come home.

    We have unfair tax system that awards only the privileged, the wealthy, the corporations and many other powerful entities with many paying nothing into the tax pool. The TEA PARTY LEADERSHIP will rescind and bring into service a much more fair and impartial system.

    Pro-sovereignty organizations are stirring rightfully the pot, as it’s no longer just Obama’s mentors pressing for immigration rights; not of course determining the difference between those who legally came here and the larger majority that disrespected the laws and entered anyway? Of course this has been duly noted by both parties, but they too have disregarded the invasion and allowed it to happen. Illegal immigration to Border States has become a very expensive proposition, in some cases billions of dollars for the uncompensated health care, education, with the dollar figure rising all the time.

    Only two bills that is designed to remove illegal aliens from the workplace, remains in inert and that being ‘THE LEGAL WORKFORCE ACT’ (H.R. 2885), known through the business world as E-Verify and a very urgent measure and bill known as ‘THE BIRTHRIGHT CITIZENSHIP ACT (H.R.140). If all citizens and lawful residents bombarded each and every Senator, Congress person with these demands an enacting these laws, it would slowly but surely close to deliberate loopholes to halt illegal immigration. Further the TEA PARTY also supports these laws, but both parties in the aisles of CONGRESS, refuse to enact them. From what I have read, most have come to the realization that any law is subdued, so both parties can get more votes or illegal workers. Otherwise doesn’t it make more sense to make illegal entry or purposely staying as a criminal FELONY?

    The Department of Justice have attacked the sovereignty of individual states, but do nothing—NOTHING—against sanctuary states and cities that undermine the ‘’ is Federal Immigration and Nationality Act Section 8 USC 1324(a)(1)(A)(iv)(b)(iii)

    ‘”Any person who . . . encourages or induces an alien to . . . reside . . . knowing or in reckless disregard of the fact that such . . . residence is . . . in violation of law, shall be punished as provided . . . for each alien in respect to whom such a violation occurs . . . fined under title 18 . . . imprisoned not more than 5 years, or both.”

    The TEA PARTY will enforce these laws and hold accountable Democrat Governor of Deval Patrick who has indicated that he will protect illegal aliens from ICE, Liberal Mayor of Los Angeles Antonio R. Villaraigosa, who allegiance is to Mexico and not in protecting the citizens of the county. Mayor Rahm Emanuel of Chicago who has publicized he will not cooperate with ICE, so he will also face harsh sanctions. That every Governor, Mayor and elected official who is pandering to Illegal aliens, ‘NOT LEGAL IMMIGRANTS’ must be deported for breaking our laws.

    Join the TEA PARTY in your town, your city and see the change in America, see a real change. There will never be any change under a majority of Democrats or even the Republicans. Keep on voting in TEA PARTY leadership that can change America forever. Either President Obama or Former Governor Mitt Romney should be answerable to ‘The People’ as with a Liberal Progressives Socialist agenda and limit the powerful Capitalist machine are wrong and will be ended by the millions of TEA PARTY voters. Voting for Obama just means more taxes and more spending. But by voting the TEA PARTY GUIDANCE into the Republican Party, we can alter the route of the GOP leadership and remove the incumbents and rebuild the party into a true conservative party? We can shut both political parties by ushering in as many TEA PARTY politicians into Congress, to do our bidding.

    Read about the corruption in your state, the federal government at ‘Judicial Watch’. Read about your taxpayer money going to support the illegal alien invasion at NumbersUSA. For the Democrats elicit Votes, as they pay no heed to non citizens violating our election laws; in fact they a complicit in allowing them to vote in any government election, which has been proved over and over again. Whereas the Republicans are not without fault, as they are importing slave labor. IT MUST STOP?

    • Dave: Wrong blog and wrong Universe, amigo. Yours is three universes west and two north. You’ll find a lot of people such as yourself there. House of mirrors, in fact. Good luck among your own. Thanks for coming by. Jules

  4. Whooo, fun times. I had to come see the comments here to see what the next post was on about. Hey, I’m still around! And I promise to never bore you with Irish politics. After all, you seen one govmint, you seen em all.

  5. I wish that you could write things like this for the attention of governments around the world. I can’t think of a better disaster-prevention strategy. Could you sometime write a post about what it is like to live in rural Texas? I’m young and stupid and all I hear about the place is that the people fear Satan and love Republicanism in equal measure. You don’t match the bill. Maybe you could educate me.

    • Hi again, Kate: Governments around the world are chock-full of people more-or-less precisely similar to ourselves. Which is to say, they already know everything they think they need to know. They sometimes ask for advice sometimes, but only as a cynical attempt to pretend they’re interested.

      I’m old and stupid and happen to live in rural Texas. But my experiences living here probably don’t have much more in common with the experiences of most rural Texans than they have with people anywhere else. Yep, a lot of Texans fear Satan, fear liberals, fear not being as wealthy as they wish, fear anyone who is unlike them, fear that someday they’ll look in a mirror and see what’s actually there. Mostly they’re conspicuously admiring of wealth and the wealthy, proud of a history they had nothing to do with creating, proud of a geography drenched in blood of almost anyone who ever tried to live here, even long before Europeans arrived. Although most would deny it, Texans possibly sense internal yearnings for dynastic aristocracy to rule their lives more than most US citizens. Not to suggest most US citizens elsewhere don’t manifest the same yearnings, though with less focus. Thanks for coming by. Gracias, J

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