Dallas Fed: Will new business tax dull Texas’ competitive edge?

The Federal Reserve Bank of Dallas has jumped into the discussion about Texas’ new business tax by examining its implications on the state’s business climate in a new study by Jason Saving entitled “Will New Business Tax Dull Texas’ Competitive Edge?”

Saving poses the following question regarding the business tax: Will it erode the Texas economy’s highly competitive business climate?

His answer: Probably not in the immediate future, but…

Saving suggests that the tax slightly raises Texas businesses’ aggregate tax burden, somewhat reduces tax distortions across sectors, and moves the tax structure toward a form of tax equity by treating similar businesses the same.

Saving notes:

Because the margin tax will raise more money than the previous franchise tax, it’s tempting to conclude it will harm the state’s business climate. But the new tax also treats sectors and businesses somewhat more equally than the old franchise tax did, producing a more efficient allocation of resources. The higher revenue and greater efficiencies will offset themselves to some degree, mitigating the negative impact of a higher franchise tax burden on the overall business climate.

Other tax changes made concurrently with the new margin tax — notably, a reduction in property tax burdens borne by both businesses and individuals — further mitigate the adverse impact and could arguably leave Texas with a slightly more favorable business climate than it had under the previous franchise tax. Such an outcome isn’t a certainty, of course, and vigilance will be needed if Texas is to retain its reputation as an attractive place for business. 

Of course the new tax raised more money than before.  But has it hurt the state’s business climate?  You be the judge. If the state has a freakin’ $10.7 billion surplus, perhaps one could argue that it does negatively impact the overall business climate…

Feel free to cuss and discuss this one…

Prospects for a Democratic dream ticket?

Between Jack and s**t… and Jack left home…

However, some don’t see it that way.  Adam Parkhomenko, a former assistant to Patti Solis Doyle, who was the former campaign manager for Senator Hillary Clinton, is pimping a new website called VoteBoth.com.

Lots o’ luck with that dream, pal.  This ain’t 1960 and Hillary ain’t LBJ.

Hat tip to the L.A. Times’ Top of the Times Blog…

Obama Campaign: The Limbaugh Effect Is Real

Apparently the Obama campaign now accepts the notion of the so-called “Limbaugh effect.”

Since Senator John McCain clinched the GOP nomination, Rush Limbaugh has engaged in something that he terms “Operation Chaos” as a way to sow chaos into the Democrats nomination process.

The “Limbaugh effect” may have been in play in Indiana.  Based on CNN’s exit polling data, 17% of voters in the Indiana primary said they would vote for John McCain in a Clinton/McCain match-up.  41% of that number is constituted by people who voted Clinton in the primary but also indicated they will vote for McCain in the general election. That comes out to just under 7% of the primary electorate the number that may be attributed to a “Limbaugh Effect.”

Our Lady of the Lake University hit by fire

We pray for our sister Catholic institution this morning.  A fire has destroyed much of OLLU’s Main Building, a landmark in San Antonio.  Not suprisingly, arson investigators are on the scene looking for clues about the source of the fire — particularly in light of a written bomb threat found on the campus on Monday.

NPR’s All Things Considered Doing Chengdu — May 19-23

National Public Radio’s All Things Considered Show will be broadcasting from Chengdu, Sichuan Province, People’s Republic of China from May 19 - 23.  They’ve established a blog in anticipation of the week of broadcasts.

I visited Chengdu, the capital of Sichuan Province, in October of 2007 when I presented a paper at the International Conference on Public Administration (held at the University of Electronic Science and Technology of China).  Great town, great people, incredible food! The students and faculty of UESTC were quite engaging, friendly, and rightly proud of their university, city, province, and country.

Chengdu is a big honking city, with a population twice the size of the entire Houston metro area (11 million).  It’s also the home of China’s national symbol, the Panda (along with the rest of Sichuan Province).

If you get a chance, check out the posts on all things Chengdu.

Indiana/North Carolina aftermath: Na, na, hey, hey… Goodbye!

Courtesy of Slate.com’s “Hillary Deathwatch.”

Kiss her goodbye!