DAI: Resurrecting Tax Giveaway Program is a Bad Idea for Texas



[Excerpt]

Chapter 313 was one of the country’s worst examples of crony capitalism, funneling billions in Texas taxpayer dollars to out-of-state interests. The program still costs Texas taxpayers over $1 billion a year in tax breaks to major oil, gas and manufacturing companies — money that could go to educating our children.

Dallas Area Interfaith, the Texas IAF, allies and a bipartisan group of legislators killed the reauthorization of Chapter 313 in the 2021 legislative session. Rather than leaving the program in the grave, industry groups are actually proposing to resurrect Chapter 313 this legislative session and make it worse in the form of House Bill 5.

Last September, in a House Ways and Means Committee hearing, industry groups painted an apocalyptic vision of Texas’ economy without Chapter 313. Their statements were based on opinion. Fortunately, we can look to Louisiana to see if their fears are merited.

In 2016, Louisiana reformed its version of Chapter 313, the Industrial Tax Exemption Program. The reforms generated $760 million in new tax revenue for schools and other public entities with no negative impacts on jobs. In fact, capital expenditures grew after the reforms.

Louisiana’s experience mirrors studies on economic development incentives. The Upjohn Institute found that “75% to 98% of the time, the same decision would have been made without the incentive.”

Similarly, a 2017 University of Texas study of Chapter 313 estimated that between 85% and 95% of Chapter 313 projects would have been located in Texas without the incentive. These incentives matter much less than other factors such as the labor force, education, infrastructure and access to markets and materials.

[Image Credit: NewsArt.com/Chris Van Es]

Paying for the 'Texas Miracle'Dallas Morning News [pdf]

Texas House Passes Plan to Bring Back Corporate Property Tax Breaks for Major ProjectsDallas Morning News [pdf]

Latest Updates

Latest Updates

Discover our latest initiatives and see what’s new in our communities!

DAI's 'Cry for Justice & Call to Action' Galvanizes North Texas

Drawing more than 700 institutionally based leaders from across North Texas, Dallas Area Interfaith's 'Cry for Justice and Call to Action' tapped into fresh energy and galvanized new participation from all...

Read More

DAI's Bilingual Leadership Training Prepares 60 Ministry Leaders for Public Life

On the weekend after the election, Dallas Area Interfaith's bilingual parish leadership development training drew 60 ministry leaders from seven parishes and three guest institutions.  Bishop Greg Kelly reflected on...

Read More

Dallas Morning News Highlights DAI's Collaboration with Police Chief to Build Police-Community Trust

After Texas legislators passed the anti-immigrant Senate Bill 4, Dallas Area Interfaith (DAI) leaders didn’t lose hope. Instead, they reached out directly to the Dallas Police Department, engaging them in...

Read More

DAI at Center of Fight to Improve Conditions in Dallas Apartments

[Excerpts] You have to wonder what would become of the residents of Kendall Villas without advocates like Dallas Area Interfaith pressing the city on their behalf. ....city staffers were aware...

Read More

USCCB: Pope Meets US Leaders Patiently Building 'Culture of Solidarity'

[Excerpt] When Pope Francis told a group of U.S. community organizers that their work was "atomic," Jorge Montiel said, "I thought, 'Oh, you mean we blow things up?'" But instead,...

Read More

With Support of DAI, Bachman Lake Tenants Get the Attention They Deserve

Leaking faucets, holes in the floor, and rats running across children's feet at night.  An apartment manager refusing to start repairs without proof of US citizenship.  These are just some of...

Read More

DAI Tenant Leaders Deepen Cooperation with Code Enforcement, See Noticeable Improvements in Housing Conditions

DAI tenant advocacy for improved conditions in low-income Bachman Lake apartment complexes continues to pay off, partly due to increased collaboration with bilingual housing code inspectors. Spanish speaking Dallas Area Interfaith leaders have been at the forefront of action, including meetings...

Read More

DAI Calls on City to Retain Rental Inspections Data for Longer Than 3 Years

[Excerpt] Barry Lachman, a Dallas Area Interfaith leader, was involved in the creation of Chapter 27 in 2016. He said that not having enough data for at least five to...

Read More

Texas IAF Stands Firm with Legislators That Voted Against House Bill 5

Two Years of Texas IAF Opposition Leads to Reforms to Limit Giving School Money for Corporate Tax Breaks  The Texas Senate and House passed a compromised version of HB5 that still...

Read More

DAI: Resurrecting Tax Giveaway Program is a Bad Idea for Texas

[Excerpt] Chapter 313 was one of the country’s worst examples of crony capitalism, funneling billions in Texas taxpayer dollars to out-of-state interests. The program still costs Texas taxpayers over $1...

Read More

DAI's 'Cry for Justice & Call to Action' Galvanizes North Texas

Drawing more than 700 institutionally based leaders from across North Texas, Dallas Area Interfaith's 'Cry for Justice and Call to Action' tapped into fresh energy and galvanized new participation from all...

Read More

DAI's Bilingual Leadership Training Prepares 60 Ministry Leaders for Public Life

On the weekend after the election, Dallas Area Interfaith's bilingual parish leadership development training drew 60 ministry leaders from seven parishes and three guest institutions.  Bishop Greg Kelly reflected on...

Read More