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Tax Reform

Before county and local governments are able to determine how their tax dollars are best spent, Austin and D.C. have already spent them by issuing their own mandates without the necessary funding to implement them. We have massive amounts of overspending at the state level that must be cut.

Unfunded Federal Mandates

Almost everyone agrees that taxes are a burden, but the largest basis of our increased tax burden falls on unfunded federal mandates, which are often detrimental for counties and other more local municipalities to meet with dwindling funds.

  1. The necessary funds to meet these mandates are dwindling because about a third of the people are on Medicaid, and the remaining of taxpayers are footing the bill. The best way for the taxpayers to implement change is to vote.
  2. Failure to remove these mandates leaves local governments with no choice but to continually raise property taxes, without the discretion of their constituents, in order to meet demands made by bureaucrats who don’t even live there. Property taxes must only be raised with the permission of the voters.
  3. Cap the amount of money permitted to go back to law enforcement from various avenues, including speeding tickets and other fines. Law enforcement should not be incentivized to punish its citizens more in the interest of raising funds. Police need to return to enforcing safety and supporting the rights of the people, and not feeling as though they are responsible for bridging the financial gaps created through unfunded mandates.

Overspending for State Overreach

We have an unusually larger tax deficit than many states that support a significantly larger population than Texas. We must determine what can be done to stop this fiscal irresponsibility.

  1. We must negotiate any pensions currently in the state budget to be transferred to 403(b)s and other options that no longer require state funding. Failure to do so will take New York down to path to eventual default on meeting our existing agreements- potentially leading pension payments to be dropped by as much as 50%.
  2. We can reduce the cost of Medicaid by reducing healthcare costs and expenditures. Opioid overdoses cost Texas billions of dollars. By taking the simple steps necessary to prevent opioid overdoses, we could save enough money to virtually wipe out Texas’s budget deficit and bring in a surplus. In order to increase overall employment and wages, we must eliminate poverty traps and make Texas more friendly towards small business and hiring. Increasing these economic indicators will help alleviate some of the state’s poverty troubles, enabling more people to no longer require Medicaid.
  3. We must implement alternate sources of state revenue beyond the ridiculous taxation across the state. If we want to pay less in taxes, we need to find something else that benefits the state more directly. One option could be running commercial freight through cities at night using the light rail lines in cities having them. How to implement that would be up to the city (because they would be collecting the revenue), but that revenue benefits the city directly lessening their burden on the state.
  4. We should end the subsidies currently given to major corporations that move in, wreck local and small businesses, and leave once their tax savings program ends. By creating an environment conducive to business, small firms and entrepreneurs will once again organically move into Texas and remain for the long term instead of simply responding to special favors or interests relative to the state and local government.

Committee to Elect Darren Hamilton
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