DAI: Resurrecting Tax Giveaway Program is a Bad Idea for Texas
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 Projects, Dallas Morning News [pdf]
Texas IAF Blocks $10 Billion Dollar Corporate Tax Giveaway to Big Oil
When organizers set out to overturn Texas’s giveaway program for the oil and gas industry, they had a long game in mind. Over 20 years, the tax exemption program known as Chapter 313 had delivered $10 billion in tax cuts to corporations operating in Texas — with petrochemical firms being the biggest winners. This year, for the first time in a decade, the program was up for reauthorization. Organizers decided to challenge it for the first time.
At the beginning of last week, as Texas’s biennial legislative session approached its end, the aims of organizers remained modest. “We thought it would be a victory if the two-year reauthorization passed so we could organize in interim,” said Doug Greco, the lead organizer for Central Texas Interfaith, one of the organizations fighting to end the subsidy program.
At 4 a.m. last Thursday, it became clear that something unexpected was happening: The deadline for reauthorization passed. “The bill never came up,” Greco told The Intercept. Organizers stayed vigilant until the legislative session officially closed on Monday at midnight, but the reauthorization did not materialize....
“No one had really questioned this program,” said Greco, of Central Texas Interfaith. The reauthorization was a once-in-a-decade chance to challenge it. “We knew in our guts that the program was just a blank check, but we also are very sober about the realities of the Texas legislature.”
....As legislators met in a closed session to hammer out the bill, Greco heard from a colleague. “One of my organizers said there’s 20 oil and gas lobbyist standing outside this committee room,” he recalled.
Former Gov. Rick Perry, an Energy Transfer board member, tweeted his support for reauthorization. But as last week of the session ticked by, the bill didn’t come up. “It became clear that the reputation of the program had been damaged,” Greco said.
In 19 months, Texas’s subsidy program will expire, but that doesn’t mean the fight is over.
“We know there’s going to be a big conversation over the interim — we are under no illusions that this is not going to be a long-term battle.”
Organizers, though, recognize that the subsidy’s defeat marks a shift: “The table has been reset.”
In Blow to Big Oil, Corporate Subsidy Quietly Dies in Texas, The Intercept [pdf]
How Skeptical Texas Lawmakers Put an End to a Controversial Tax Incentive Program, Houston Chronicle [pdf]
Texas Legislature Dooms Chapter 331, Which Gives Tax Breaks to Big Businesses, Business Journal [pdf]
Missed Deadline Could Doom Controversial $10B Tax-Break Program, Houston Chronicle [pdf]
A Texas Law Offers Tax Breaks to Companies, but It's Renewal Isn't a Done Deal, Texas Tribune [pdf]
Losers and Winners from Chapter 313, Central Texas Interfaith
DAI, with Catholic Bishop & Texas IAF, Intensifies Push Against 'Permitless Carry'
A new Senate committee, quietly formed Friday and stacked with Republicans who favor permitless carry, will have a hearing on the proposal next week, according to its new chairman... Since then, several Republican senators publicly announced support for “constitutional carry,” as it is known among backers, who say the government shouldn’t block people’s right to bear arms....
Meanwhile, lobbying is intensifying against the bill as faith leaders this week joined a growing list of opponents, which already includes members of law enforcement and some firearm instructors.
“With every right we have comes corresponding responsibilities and the background checks and the safety measures help with that,” said Bishop Gregory Kelly of the Catholic Diocese of Dallas, one of several faith leaders to speak at a press conference Wednesday sponsored by the Network of Texas IAF Organizations.
“My dad was a gun owner, he taught me how to shoot a gun when I was a kid ... I don’t see how not having that in place makes us safer.”
[Photo Credit: John Figueroa, Dallas Morning News]
Texas 'Constitutional Carry' Proposal For Handguns Has New Momentum in State Senate, Dallas Morning News [pdf]
DAI, with Texas IAF, Bishops & Faithful Call on Lt. Governor and Senate to Reject 'Permitless Carry' Legislation
Bishops, rabbis, clergy and faithful from across Texas convened to express vocal opposition to the passage of proposed legislation HB1927 which would allow "permitless carry" in the state of Texas.
Catholic Bishop Mark Seitz referenced the massacre in El Paso which resulted in dozens of residents dead and seriously injured. Baptist Rev. Darryl Crooms from San Antonio testified to the "unnaturalness" of adults burying children. Lutheran Rev. Jessica Cain testified to the impact of last weekend's shooting in North Austin on local worshippers. Rabbi David Lyon recalled last year's deadly shooting in Santa Fe High School.
Together -- with Lutheran Bishop Erik Gronberg, Episcopal Bishop Suffragan Kathryn Ryan, Methodist Director of Missional Outreach Andy Lewis, Dallas Catholic Bishop Gregory Kelly and several lay leaders -- all expressed concern that passage of HB1927 would increase gun violence. States that have passed similar laws, removing the required license and training needed to carry a handgun, experienced spikes in homicides and gun violence.
“Our faith tradition teaches us to protect life,” said Bishop Suffragan Kathryn M. Ryan of the Episcopal Diocese of Texas. “You cannot protect life if people carrying deadly weapons aren’t properly trained and licensed.
"You’ll find no scripture that will support this kind of legislation,” said Pastor John Ogletree, First Metropolitan Church of Houston.
“It makes our church much less safe,” said El Paso Bishop Mark Seitz.
Group of Texas State Leaders Say They're Opposed to Permitless Carry, FOX KDFW
Esto Opinan Líderes Religiosos en Tejas Sobre la Propuesta Legislativa de Portar Armas Sin Licencia, Univision Dallas
Texas Faith Leaders Come Out Against 'Permitless Carry', CBS Austin [pdf]
Bishop Mark J. Seitz, Other Religious Leaders Oppose Bill That Would Ease Carrying of Guns, El Paso Times [pdf]
Religious Leaders Speak Against Texas Bill That Could Allow You to Carry Gun Without License, ABC13 Houston [pdf]
El Paso Bishop, Gun Store Weigh In On Texas 'Constitutional Carry' Bill Debate, KFOX14 [pdf]