J.R.@A&M wrote: ↑Mon Sep 03, 2018 11:28 am
PriestTheRunner Finally, back on taxation… Texas sends about 265 Billion dollars annually to the Federal government, but only gets back about 162 Billion. [b wrote:In other words, if ALL Texas dollars were kept in Texas, we would have a 100-120 Billion Dollar surplus to lower Texas taxes and keep in Texan’s pockets[/b].
The potential error here is that the calculation may ignore a lot of other "overhead" government obligations, e.g., defense, currency stabilization, R&D, etc. that are not reflected in federal transfers to individual states, but that the latter do benefit from. If Texas had to take on all these additional overhead costs, it changes the calculation.
Further, some chunk of what Texas individuals send away in Federal tax collections are taxes on income that is federally derived, e.g., salaries paid to military folks stationed in Texas, grants/contracts paid to contractors, etc. Taking that out of your equation also changes the calculation.
Considering 'Overhead' obligations, yes there are some that are not accounted for in our current spending. We do, however, have all of our own military forces at present under the Texas banner. One really should be questioning whether we need a standing military as large as our own when the founding fathers intended for us to not even have a standing army. Much less that we should spend 58% of discretionary spending on defense. Current defense spending is 598.5 Billion, annually. You are paying for that. That is nearly $2000 per year, per person. Family of five, that is $10,000 each and every year. Do we need spending that high?
And if Texas were to spend a fraction of that on actual preparedness instead of an endless chain of ever-more-expensive technology, we would be perfectly capable of defense.
Also, the military spending has been addressed above. It is the smallest segment of the Texas workforce categories.
(FYI: Not hating on the military guys around here. You guys are the reason we can sleep safely at night. But pretty much everyone in the military and outside of it can look at the top brass' decisions and see massive amounts of waste. Sometimes to the detriment of our soldiers (ahem killing the very viable A-10, ahem). My point isn't that we need to call everyone home (thats not what I believe), it is that there does not seem to be a need to spend as much as China, Russia, Saudi Arabia, India, France, the UK and Japan
COMBINED.)
J.R.@A&M wrote: ↑Mon Sep 03, 2018 11:36 am
PriestTheRunner wrote: ↑Sun Sep 02, 2018 7:01 pm
Third Point:
To those of you who think Texas wouldn’t survive on its own, here are some surprising details:
~ Texas has its own water
Not really. Texas shares the Ogallalla with four states. Texas shares the Rio Grande with two states and Mexico. Texas shares the Pecos, Red and Sabine Rivers with neighboring states. Much internal flood control and dam construction, including the Brazos and Colorado basins, is subsidized by the U.S. Army COE.
Granted it is an oversimplification, but we are not an importer of water. That was more my point.
J.R.@A&M wrote: ↑Mon Sep 03, 2018 11:46 am
PriestTheRunner wrote: ↑Sun Sep 02, 2018 7:01 pm
Third Point:
To those of you who think Texas wouldn’t survive on its own, here are some surprising details:
~ Texas would have between the 7th and the 10th ranked economy worldwide
~ Texas has its own, fully independent electrical grid
~ Texas surpasses Saudia Arabia in oil exports, and provides ¼ of the United States (minus Texas) oil.
~ Texas is 6th in wind-energy production
~ Texas is home to 51 of the Fortune 500 companies
This "owner-operator" viewpoint is oversimplified. The State doesn't own all these resources and industries -- private entities do. Who knows what those entities would do if Texas was separate from the U.S.? I don't, but I wouldn't just assume that everything would be/cost the same as it did before. I wouldn't assume that the State's economic performance would necessarily be the same. It's one thing when companies, executives, workers, etc. just relocate to a different state -- perhaps more difficult if it were a different country. Too many questions for easy extrapolation.
One can always assume worst-case scenario. But are all 51 of those largest companies really going to pack up and leave? They might more their headquarters, but considering Texas is already the most business-friendly state, it seems more likely that an independent Texas with a lower tax rate would attract more business, not less.
J.R.@A&M wrote: ↑Mon Sep 03, 2018 1:04 pm
PriestTheRunner Finally, back on taxation… Texas sends about 265 Billion dollars annually to the Federal government, but only gets back about 162 Billion. [b wrote:In other words, if ALL Texas dollars were kept in Texas, we would have a 100-120 Billion Dollar surplus to lower Texas taxes and keep in Texan’s pockets[/b].
The biggest potential error is to assume that independent Texians would continue to benefit from a relatively stable currency and financial markets in a post-Texit world.
Think what you want about the Federal Reserve and the dollar. The relevant comparison here is not the U.S. dollar now-versus-then. It is the U.S. dollar-versus-Turkish lira, and/or U.S. overnight borrowing costs (2%) versus Turkey (19%). (Pick any other country that you want... the point is the same).
If Texas were an independent country, your and my wealth would be more at risk, I think, than it is now. I am as proud of my State as anybody, but the forex and bond markets could not care less. That is the one thing I can agree on with James Carville (re:
https://www.bloomberg.com/news/articles ... t-jd0q9r1w).
I guarantee that the markets would be unstable, at first. Just like Brexit. Markets absolutely hate uncertainty. However, with a gold-backed currency (long term) and the US dollar as the adopted currency (short term), currency variation wouldn't be a unsurpassable problem. We wouldn't just hit a switch and start printing out Texas Dollars in a fiat system. The logical thing is to use the money already in circulation until a viable currency (and currency program) can be formed. There are several countries that already use the US dollar as their currency, even with the US' permission. (Though I wouldn't want to be hitting my retirement date the day before a Texit either, but thats life).
As far as investing goes, I image corporate bonds would bounce back quick (just like brexit) and Treasury bonds would be somewhat slower (just like brexit). Any corporations that have no assets in Texas and do not use Texas as a market would be only slightly affected (just like brexit). The world wouldn't stop turning. People would go to work the next day. Once the uncertainty is gone, stability would arrive as it always does in larger markets.