Posted on 09/01/2011 9:22:51 PM PDT by Palter
Critics on the right and the left are taking aim at Texas Gov. Rick Perry's trademark job-creation funds as he steps up his campaigning for the Republican presidential nomination.
The funds, which dole out tax dollars to companies that launch or relocate in Texas, became controversial in the state soon after Mr. Perry persuaded the legislature to start one in 2003 and put it under his control. Mr. Perry believes the funds have contributed to job growth in Texas, which has accounted for 40% of all new jobs in the U.S. since the recession's end in 2009, said spokesman Mark Miner.
In his last campaign for governor, challengers representing Republicans, Democrats and the tea party criticized his use of these programs, without discernible impact. But now that he is in the national spotlight, critics are citing the funds as evidence Mr. Perry is not always the free-market fiscal conservative he claims to be, and asserting that state funds have improperly benefited his campaign donors and friends.
The conservative Club for Growth, in an evaluation of his record released in Washington last week, called these funds corporate welfare and suggest "Governor Perry is more pro-business than he is pro-free markets." The Republican Liberty Caucus, which describes itself as libertarian-leaning, put "business slush funds" first on its list of things primary voters should know about Mr. Perry. "It's a high-risk operation that is open to corruption and favoritism," David Nalle, an Austin businessman who serves as the national group's chairman, said in an interview.
The Texas Democratic Party and Texans for Public Justice, a liberal Austin research group, also have taken the funds to task for favoring his donors and failing to add as many jobs as promised.
Mr. Perry's spokesman dismissed as unfounded claims that the funds enriched the governor's backers.
(Excerpt) Read more at online.wsj.com ...
Nothing free market about subsidies with YOUR hardearned tax dollars
” ( - - - Critics on the right and the left are taking aim at Texas Gov. Rick Perry - - - )”
Both left AND right - - - . Sounds like a “balanced” plan to me.
Well, the people who get the jobs created by incentives from Texas, plus no income tax as well, don’t seem to be complaining.
Would Alaska exist if the US government didn’t pay people to live there?
The program also had an amazing return on investment. The state was getting back from a LOW of 27x the investment up to over 100x the investment in increased Gross State Product. And the direct return to the state (increased revenue to the state through taxes) averaged 652%. That means the state received $652.00 in new tax revenue for every dollar invested. This has got to be one of the most effective economic stimulus programs in history!
Thanks to cripplecreek for providing this information. I never realized how effect the TEF program was at job creation. I'll be sure to post this information every time someone brings the subject up.
Don’t tell that to the Palinstinians around here. They are having trouble with facts lately.
I’ve noticed.
Socialism, you steal jobs from your fellow states and then claim you are better than they are.
A recent report on the TEF shows that 54,954 direct jobs were created at a cost of $7,455.52 per job, or a total of 190,360 direct and indirect jobs were created, at a cost to the state of $2,308.98 per job since it was established. Considering that the federal government crows about creating a few hundred jobs that cost the taxpayers over $100k per job, it looks like Texas has the right idea. If Perry had $800 billion to spend on job creation like Obama did, by this calculation, he could have created 107,303,045 direct jobs.
The program also has had an amazing return on investment. The state is getting back from a LOW of 27x the investment up to over 100x the investment in increased Gross State Product. And the direct return to the state (increased revenue to the state through taxes) averaged 652%. That means the state received $652.00 in new tax revenue for every dollar invested. This has got to be one of the most effective economic stimulus programs in history!
Thanks to cripplecreek for providing this information. I never realized how effective the TEF program was at job creation. I'll be sure to post this information every time someone brings the subject up.
Déjà vu?
Yeah, sorry. I thought someone had reposted the article... LOL Must be getting late, time for bed.
Socialism, you steal jobs from your fellow states and then claim you are better than they are.
Bull. Each state was intended to be independent from the others and it’s own experiment in democracy. People and companies would have the freedom to decide. This is a great return on an investment for Texas and it’s truly a two-way street since companies invest large amounts of money in a move and setting up the new location.
In an ideal world it’s not necessary but combined with a good regulatory, tax, and tort climate if it brings in jobs at these costs it is a good deal for Texas. Besides, the legislature (the people) have to concur with it.
It’s not applicable necessarily to the White House but it does show that Texas is aggressive about attracting jobs. Good for them!
Yes, now if all states jump in and start buying business we will have a real free market. “Not”
Of course I have never heard a welfare recipient complain about getting free money. The thing is that its theft from the taxpayers.
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