End CorporateWelfare - Repeal Chapter 403
Our Vision
The 87th Texas Legislature 2021, Chapter 313, a program deemed “economic development” was allowed to expire. This egregious corporate welfare program, more akin to a money laundering scheme for PAC contributions, was finally exposed even the legislators were too embarrassed to keep it in place.
But a corporate welfare program with so much political contribution fire power can’t be allowed to disappear. No worries, Speaker “let’s go bankrupt” Dade Phelan to the rescue. Introduced in the 88th legislature the high priority HB 5 bill is introduced to create a new corporate property tax subsidy scheme. Acting on the sage but cynical advise of retired State Representative Dan Huberty the chapter number needed to be changed, and changed it was! Changed to Chapter 403. And thanks to the deep dive by George Vachris, it was buried even deeper as Chapter 403.601 of the Texas Government Code.
Why do our Republican Texas Legislators think Texas Taxpayers should pay property taxes to entice companies to invest in the Texas miracle? Are they not aware of their own policies that bring companies here? Texans taxed out of their homes and off property that has been in the family for generations, are told they need to pay corporate property taxes for “economic development”. Of course, most of these companies are not in Texas many not even in
the United States. Texans paying foreign corporate property taxes.
There is a real danger front in center with all these corporate relocations. Texas does not have the infrastructure to support it. We simply do not have the electricity nor water resources to sustain it. Making the use of taxpayer money to pay companies to come here, even more appalling. Reading the bill, one of the more interesting qualified applicants is “new and expanded dispatchable electrical power generation facilities”. This is particularly retching because the need for these facilities is a direct result of government interference in electric generation in Texas. The free market could easily address this, IF ERCOT policies weren’t hindering it.
Current policy is that windmills and solar (falsely labeled renewables) are the first to be on the grid and last to be taken off. To make up for the unreliability of renewables, these dispatchable sources of electric generation are required. So chapter 403.601 of the Texas Government Code must provide a taxpayer subsidy to build them.
For taxpayers keeping score, renewables are subsidized by the Federal Government, Texas Taxpayers built the electric grid for them in the Texas Panhandle, local governments give Chapter 312
agreements, Chapter 313 agreements are 10 years, so many still get that subsidy. Get the reason investors find them so lucrative? It isn’t for the revenue from selling electricity.
It is time to rally your state legislator to end corporate welfare programs like Chapter 403.601 Texas Government Code. I am getting commitments from various Texas Senators and candidates to do just that. But just like ending Chapter 313 it will take grassroots screaming to end another effort by the Texas Legislature what is really a campaign donation generator.