TPPF 10th
Annual Policy Orientation: Recap
The subsequent posts will highlight key themes and topics
discussed throughout the event with YMinoritiesC perspective. A takeaway from
the event, as a whole, is that we are living in a critical time where men and
women will make decisions that will influence the state of affairs for years to
come. This is a time, not for the faint of heart, but the courageous. As Reagan
stated, “The future doesn’t belong to the fainthearted; it belongs to the
brave.” We are living in an era where it is time for the brave to rise up, take
a stand, and leave a prosperous legacy.
Texans, Americans, we are living in exciting times!
On the Horizon: Texas Legislative Focus
The Texas legislatures, staffers,
and policy makers attended various panel discussions during the TPPF 10th
Annual Orientation that will influence the 83rd legislative session.
The conference initiation began with Dr. Bill Bennett’s “Morning in America”
radio broadcast, interviewing Dr. Arthur Laffer as well as Wisconsin Governor
Scott Walker.
Dr. Laffer advised that the next president
should set tax cuts, cut regulations, repeal Obamacare, boost upstart
companies, and more. Gov. Walker relayed that his actions reflect the desire to
bring “a little Texas’ policy in Wisconsin.”
The Texas Model Debate followed the
introductions laying the fiscal framework for the Conference.
The Texas Model
Debate: What is a Fair Economic Plan?
Ronald Reagan expressed that “[i]f we don't start now, who
will, and when?” An appropriate comment as we look at the worldwide economic
crisis. All eyes are on America—the beacon for prosperity and rule of law. Economics,
as many recognize, is one of the most important topics currently addressed
worldwide. Tax policy, and free market enterprise, will take center stage this
fall in the 2012 elections.
The Texas Model Debate reviewed key questions when looking at the state and nation's
financial structure. As the agenda described, "World renowned economist
and 'father of supply-side economics,' Dr. Arthur B. Laffer will debate Dr.
Jared Bernstein on the merits of Texas-style governance and how to grow the
economy." The debate addressed the definitions of supply-side vs. stimulus
(Keynesian) economics along with jobs, tax structure, revenues, deficits, and
education.
Debate Highlights
Dr. Arthur Laffer--Supply-Side
Economics
Dr. Laffer argued against stimulus spending, deeming it as
deficit-finance spending (aka Keynesian economics). Government transfers
property rather than creating resources. There is no stimulus in the stimulus
package as it decreases the recipient’s motivation to succeed and diminishes
the amount of work the employer can provide. Dr. Laffer simplified the economic
structure, stating that if it is good economics, it will work in a two-person
world with the analogy of Farmer A and Farmer B.
Dr. Laffer’s answer to more jobs is need more
supply, create an incentive for workers.
Dr. Jared Bernstein—Stimulus/Keynesian
Economics
Dr. Bernstein argued that there is not enough demand in the economy to supply
resources in society. He proceeded with the perspective that savings are being
accumulated without enough demand to use them. When consumption is too low,
then stimulus spending ignites economic flow.
In rebuttal, Dr. Laffer expressed the huge cost in complying with the tax
codes. One flat rate, he argued would provide a tax system where everyone pays
a rate. In essence, different tax rates cause compliance issues.
Perspective: The basis of the tax argument is what is a fair tax policy?
As the government spends more, deficits increase and more of the employers'
money is allocated to inefficient programs. As a result, people have fewer career
options when employers tighten up in response to increased taxes.
Furthermore, one has to remain aware
that the tax system manipulates people’s behavior. Therefore, the more control
we provide the government to regulate the free market, the more bureaucrats
have the authority to govern how we function. As a result, business growth is
stifled and the boom in prosperity that could result from free market
enterprise is suppressed under strain and debt.
Lastly, one attendee brought up an
important concern that by not addressing moral issues, the argument overlooks a
key component in influences on financial policies. Individual’s behavior and
lifestyles directly influence their decisions. As a whole, our nation is
experiencing a moral kaleidoscope where many make choices based on their
feelings rather than principles and commitment. Therefore, individuals bring a moral
response to the conservation when they voice their concern and elect leaders
who will make decisions based on standards.
Panel Discussion: A Path Forward—Enhancing Texas’ Tax Environment
Discussion Topic: Discussing
whether changes need to be made in the Texas' tax code.
Panelists: Rep.
Harvey Hilderbran, Honorable Jim Dunnam, & Joseph Henchman (The Tax
Foundation).
Mr. Henchman discussed a sound tax policy, relating it to
the question of whether the purpose of tax policy is to raise revenue or
manipulate how people make decisions? The Tax Foundation comes from the
perspective of acquiring revenue rather than using policy to manipulate
citizen’s decisions. As a result, the organization focuses on simplicity,
neutrality, and transparency. Furthermore, they review how states raise their
taxes, rank the competitiveness of the 50 state tax systems, and provide a roadmap
for improvement.
Interesting factual takeaways include a definition of the
following terms:
Tax
Freedom Day: Estimate of how long Americans have to work into the year
to pay their combined federal, state, and local tax burden.
Collections:
Amount of $$ collected by government. Adjusts for people who purchase services,
may include citizens outside of state.
Burden:
Amount of $$ citizens pay in taxes.
Mr. Henchmen pointed out that Texas’ environment looks at
keeping and sustaining companies rather than luring in companies for a short-term
focus. Long-term minded companies appreciate this approach. As the legislatures
look forward, making a change in tax policy is where legislators can have an
immediate impact for good or bad.
Honorable Jim Dunnam and Rep. Harvey Hilderbran
discussed the tax system. Rep. Hilderbran addressed the need for a balance
budget amendment. In addition, making the tax system fairer as well as
simplifying it will attract the business sector, providing growth now and in
the future.
Panel Discussion: Making Texas a High Tech Titan
Discussion Topic: Why is Texas doing
so well with overall growth but not in the area of technology?
Panelists: Rep. Aaron Pena,
Dane Parker (Dell’s VP of Global Facilities), Jeff Clark (Executive Director of
TechAmerica Texas)
Mr. Parker illustrated the expansion in the
technology industry and the need for skilled workers. He relayed that the total
amount of data created will double every eighteen months.
Cloud computing and security needs are growing. Companies are looking at the
issue with data increase and view it as an opportunity to provide solutions.
Yet, the public sector can stifle this growth because it intervenes in an area
where it does not know how to function. Mr. Parker argued that healthy economies
require jobs and the private sector knows how to create these jobs.
Mr. Parker’s presentation conveyed that the
biggest barrier is federal tax reform and corporate tax. The U.S. has the
second most expensive corporate tax in the world. Furthermore, when the U.S.
companies bring the profit back from overseas labor, they are taxed at a
corporate income tax rate; therefore, discouraging bringing back capital into
the U.S.
Mr. Clark expressed a consensus with Mr.
Parker’s views on growth in the technology industry and the need to allow these
businesses to flourish as an economic resource. The problem, he articulated, concerns
companies leaving the U.S. due to attraction to a low cost burden, knowing the environmental
regulations for an extended period of time (in the U.S., we change the rules
constantly), and having access to the markets. In essence, Mr. Clark emphasized
that tech companies need more incentives to stay and grow in the U.S. as well
as a dependable resource pool of skilled workers.
Mr. Clark’s solutions centered on an effective education
where students receive what the parents pay for rather than simply paying more
for school. STEM (Science, Technology, Engineering, and Mathematics) is where
we need to encourage students to focus.
Keynote: Governor
Scott Walker – Talker & Doer
Gov. Walker spoke with a common sense appeal, explaining how
manipulating the budget to increase taxes and collective bargaining would hurt
rather than help the state economy. He went on to express that “collective
bargaining is not a right, it is an expensive entitlement.” The oppositions’
frustrations lay in the fact that they are upset with the inability to require union
dues. As a result, government employees have the freedom to determine where
they want to allocate their dues.
Gov. Walker’s approach emphasized looking for ways to reduce
government oversight, allowing individuals to make decisions. A balanced budget
and low tax burden will leave a long-term impact that allows individuals to
allocate their money where needed. This provides the government with the
opportunity to function on a merit and quality basis.
Gov. Walker proceeded with explaining the three
components to defeating the liberal agenda:
1.
Message – say the truth repetitively and
it will prevail.
2.
Manpower – volunteer base.
3.
Money – grassroots movement where the small
donors make up a large part of the donor pool.
In his closing remarks,
Gov. Walker stated the key principle that our Founding Fathers were ordinary
leaders who did extraordinary things. He articulated that there have been men
and women of courage who were willing to think more about their children and
grandchildren's futures rather than one’s political future.
Panel Discussion: Can Texas Businesses Afford ObamaCare
Discussion Topic: Obamacare’s impact on business growth.
Panelists: Albert Cortez
(TAMACC), Will Newton (NFIB Texas), Anne Dunkelberg (CPP), and Grady Payne
(Conner Industries, Inc.)
Mr. Cortez included the perspective on how ObamaCare is
influencing Hispanic businesses. There are 627,000 Texas Hispanic Businesses
with $85 billion sales, employing one million people, with an $11 billion
payroll. Mr. Cortez expressed how Obamacare has placed these small businesses,
which do not earn a lot of money, in a hesitant state, as they do not know what
the laws will do and cannot afford the increase in cost. Mr. Cortez expressed
the following areas that Obamacare will impact:
· Employers
must disclose benefits, which mean more administrative cost.
· 31,000
companies will pay an incremental tax.
· 16,000
companies will have to grow or reduce their size due to requirements to provide
healthcare.
Mr. Newton expressed that the individual mandate and 1099
requirement will cost about 120,000 jobs at an $18-30 billion loss by 2021. He
argued that when we need jobs, implementing a policy that reduces employment
stifles employers’ ability to provide healthcare at an affordable rate.
Mr. Payne expressed that the new healthcare requirements do
not address costs. It is a cyclical path that will incur administrative costs in
an effort to adhere to the requirements in addition to paying for the insurance.
Panel Discussion: Adonde Vamos? Texas Hispanics and the
Texas Future
Discussion Topic: How will Hispanics influence the future
of politics?
Panelists: Congressman
Francisco “Quico” Canseco, Rep. Raul Torres, George Rodriguez (San Antonio Tea
Party President)
All three presenters
provided an excellent point that as a nation we have focused more on race,
creating division, rather than the conservative values that address all
Americans concerns. Mr. Rodriguez emphasized that communicating a consistent
message based on values, conservatism, a positive moral message, and frank
dialogue about immigration, will cause conservative ideals to resonate. Mr.
Conseco encouraged that the three pillars upon which we should focus is one
language, the rule of law, and the Constitution.
Texas Republican Senatorial
Debate
TPPF and Empower Texans sponsored the Republican U.S.
Senatorial Debate between Ted Cruz, David Dewhurst, Craig James, Glenn Addison,
and Tom Leppert where the five candidates addressed illegal immigration, tax
reform, national security, and government spending. With a mixture of message
conveying, rallying the base, vying for the conservative mantel, and seeing who
could outshine whom, Texans spent the evening entertained by humorous comebacks
and promises of fighting for limited government.
Time will vindicate records, policy positions, and substance
to see which candidate will provide conservative and principled leadership as a
statesman.
Panel Discussion: Can Texas Keep the Lights On
Discussion Topic: Does Texas’ energy policy meet both
supply and demand?
Panelists: Rep. Byron Cook,
Trip Doggett (ERCOT), Donna Nelson (Public Utility Commission of Texas), and
Andrew Kleit (Professor of Energy and Environmental Economics at Penn State
University)
This discussion
emphasized the need for efficient energy use in an economic climate that has to
attract businesses while keeping the energy costs low for consumers. The tug of
war resides between the politicians who want to regulate the industry to
maintain supply requirements and businesses that can provide the innovation to
reduce costs but also need an environment where revenue provides an incentive.
Panel Discussion: Texas School Funding: How much is enough?
Discussion Topic: This topic addressed public school
funding amounts and the quality of the education system.
Panelists: Rep. Rob Eissler,
Honorable Scott Brister, and David Thompson (Thomson & Horton LLP)
Mr. Thompson provided the
2012 projections that the Texas public school system will have 5 million
students. He argued throughout his presentation from the position that a
thriving society resides on educated citizens; therefore, keeping funds from
schools limits proper education.
To the contrary,
however, Mr. Brister and Mr. Eissler distinguished entitlement versus merit and
the need for efficiency to ensure that system provides quality education. As a
result, in advocating the free-market concept where school choice thrives,
parents have the responsibility to govern their children’s education. Also, the
free market system will develop a competitive market that allows the best
education to rise to the top.
According to Mr.
Eissler, Texas is ranked 49th in performance. Continuing to funnel
money at the problem does not put forth the due diligence to determine
productivity and quality in education.
Closing Keynote: Lou
Holtz – Visionary Leadership: More than Mere Words
Mr. Holtz’s closing remarks helped the audience reflect on
their actions in which he awakened them to think about the state of our nation,
traditional morals, and what it means to be a leader. He opened with the
comments: “We should have a tax system that looks like it is designed with a
purpose. Let’s use common sense. Why is our tax code more pages than the
Constitution?” His common sense approach focused on family values and morals,
where people do the right thing, and avoid falling into the trap of bitterness.
Next, Mr. Holtz emphasized that we should use our time
wisely, giving all we can in the moment. Leaders arise in moments with a vision
and purpose, while showing a genuine care for individuals.
In closing, Mr. Holtz challenged the listeners to ask these
questions of themselves and others:
1.
Can I trust you to do what you say and mean what you say?
2.
Are you committed to excellence?
3.
Do you care about me?
He expressed, “We need to go back to the values we believe
in.” In essence, “If you didn’t show up, who would miss you and why? People
that are missed are those who have an impact.” What an appropriate ending to
the Orientation. The legacy we will have depends on the values we espouse, the
character we portray, and the people’s lives that we touch.
