Although the state Republican leadership would like for everyone to believe that the Texas economy is improving, there is little doubt that the state is still in the firm grip of the recession. If there's any doubt in your mind, just look at the newest sales tax figures.
According to Texas Comptroller Susan Combs (pictured), the state collected $1.46 billion in sales taxes for March of this year. That may sound like a lot of money, but all it proves is that Texas is a large state with a huge economy. That figure is actually 7.8% lower than in March of 2009, and means that the sales tax generated has been falling for more than a year now.
Combs tried to paint a rosy picture by noting that the drop in sales taxes were back in single digits now, where the year before that each month's drop had been in double digits. She says that shows the figures are tapering off as the economy improves. That is not only false, but it is more than a bit disingenuous.
She might have a point if she was comparing the last two months to months in a normal economy. But the harsh fact is that both February and March of 2009 were recession months -- not normal months. Since we are now comparing current months against other recession months, it is not a good sign that we are still experiencing revenue drops of 7.8% and more.
The sad fact is that even if we have showed a zero drop in revenue compared to March 2009, it would still mean we were double digits down from where it would be in a normal economy. The fact that it dropped another 7.8% shows the economy is still badly hurting and the state is not yet entering a recovery period.
That is no surprise, since the state has yet to start producing a significant rise in job creation. Although the state gained a few thousand jobs in the last employment report, they were just a tiny drop in the bucket when you consider the size of the Texas economy.
It almost seems like our Republican leaders think the state's economy will recover just by wishful thinking. It won't. There won't be anything like a real recovery until the employment situation makes a radical improvement. Jobless people and people afraid of losing their jobs are not going to go on a buying spree and jumpstart the economy.
Maybe if we cut some taxes, that will help. Or, we could provide generous subsidies and other creative tax incentives to lure businesses from other suffering states. Maybe we could get some of our jobs back from third world heck holes if we got rid of the minimum wage and eliminated any sort of restrictions on the work environment. People need to just work harder, maybe take on an extra job or two at their local retailer / fast food restaurant. Leisure time is for losers that refuse to pull themselves up by their boot straps.
ReplyDeletedallas morning news is full of 'retail sales up 9%..housing sales are up..car sales are up..jobs are up..'..where the fuck do they live?
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