Rick Perry on The Economy

Last Updated : Oct 25, 2011

Summary

Governor Perry's economic policy is to keep the burden of the state government as small as possible on the private industry in Texas through low taxes and less state spending. He has stated that low taxes, a predictable environment, low regulatory  burden, and an educated work force are the reasons Texas has done better than other states in the recession.

Despite the belief that government should not burden the private industry, Governor Perry still supports the involvement of the government in spurring the private industry. In 2003, Governor Perry initiated the Texas Enterprise Fund (TEF), a $295 million fund established to help lure projects to the state. By 2004, Texas had committed $181 million from the TEF to lure new jobs and capital investment to the Texas economy.

In addition to a lower regulatory climate, Governor Perry touts the passage of tort reform as enticing business into the state. These tort reforms includes allowing a trial court to dismiss a frivolous lawsuit immediately if there is no basis in law or fact for the lawsuit, allowing a trial judge to send a question of law directly to the appellate court without requiring all parties to agree if a ruling by a court of appeals could decide the case, allowing plaintiffs seeking less than $100,000 to request an expedited civil action, and encouraging the timely settlement of disputes and helping prevent a party from extending litigation by seeking a "home run" if they have already been offered a fair settlement. 

Governor Perry strongly opposed the 2009 stimulus plan, and wrote a letter shortly after it's passage to President Obama to note his belief that the program would lead to increased debt and solve no problems. He refused to take stimulus funds for Texas if the funds came with strings attached. This included funding for unemployment insurance, education spending, or other state spending. 

In October of 2011, Governor Perry introduced the Cut, Balance, and Grow Plan as part of 2012 Presidential Campaign. The plan consisted of six parts ranging from reforming the tax code to addressing social security to balancing the budget. The full plan is reproduced in the writeup with the highlights here:

  • Fixing the Tax Code
    • Optional 20% Flat tax with some deductions for mortgage and donations remaining
    • No tax on social security benefits, no sales or VAT tax
    • Eliminate the death tax
    • Eliminate Corporate Loopholes and Special-Interest Tax Breaks
    • Reduce Corporate Income Tax Rate to 20% to Enhance American Competitiveness
    • Enhance American Competitiveness by Transitioning to a Territorial Tax System
    • One time repatriation rate of 5.9% on money already overseas
  • Fix the Federal Regulatory System
    • Moratorium on Regulation
    • Full Audit of Every Regulation Passed Since 2008
  • Social Security Reform
    • No change for those already in the system or near the system
    • Allow younger workers to keep part of their payments in private account
    • Gradually increase the retirement age
    • Means test throguh a "blended index"
      • Some workers can still retire at 62 if they work in labor intensive industry
    • Allow state workers to opt out of social security
  • Reform Medicare and Medicaid
    • Return Conrol to the states
  • Repeal Regulations
    • Obamacare
    • Sarbanes-Oxley
    • Dodd-Frank
  • Balance the Budget
    • Reduce Non-Defense Discretionary Spending by $100 Billion in the First Year
    • Require Presidential Signature on Every Federal Budget
    • No More Earmarks
    • Require Emergency Spending to be Spent Only on Emergencies
    • End Baseline Budgeting and Require Common-Sense Scoring Rules
    • PAYGO for new federal programs
    • Freeze Federal Civilian Hiring and Salaries Until the Budget is Balanced
    • No More Bailouts

 

 

School Funding and Jobs

During a 2004 discussion on the best method to funds schools, Governor Perry spoke about job creation being the pivotal component of funding the government and that any mechanism to collect taxes for education must not interfere with job creation.

 

Top State to do Business

In November of 2004, Governor Perry released a statement noting that Texas had been named the best state in the country to do business. He notes that funding that Texas uses as incentives for companies, and the recent passage of tort reform in Texas.

 

The Texas Economy - Low Taxes, Predictability, Education

In October of 2010, Governor Perry was touting the economic environment of Texas during the 2010 campaign. He noted an article in the National Review which was highly supportive if the Texas economy and stated that the cause of the good environment was low state spending.

This theory on the Texas economy was further clarified in another press statement which noted that the economy was thriving in Texas due to low taxes, a predictable regulatory climate, and an educated work force.

  

Texas is Open for Business

In June of 2008, Governor Perry issued a press statement noting Texas's strong economy. He credited low taxes, reasonable regulatory climate, infrastructure and educated workforce

 

HB 274 - Tort Reform

In July of 2011, Governor Perry noted the passage of tort reform for Texas lawsuits that included four main principles designed to lessen the time it takes to resolve a lawsuit and the number of frivolous lawsuits.

  • Allowing a trial court to dismiss a frivolous lawsuit immediately if there is no basis in law or fact for the lawsuit;
  • Allowing a trial judge to send a question of law directly to the appellate court without requiring all parties to agree if a ruling by a court of appeals could decide the case;
  • Allowing plaintiffs seeking less than $100,000 to request an expedited civil action; and
  • Encouraging the timely settlement of disputes and helping prevent a party from extending litigation by seeking a "home run" if they have already been offered a fair settlement.

 

TEA Party Debate

In September of 2011, Governor Perry participated in the TEA Party debate in Tampa Bay, Florida. He noted his opposition to President Obama's jobs plan and the need to lower the tax and regulatory burden.

 

Campaign Website Statements

 

 

2012 Economic Plan

 

References

[1] Website: RickPerry.org Article: Facts: Unemployment Insurance Stimulus Funds Author: NA Accessed on: 10/18/2010

[2] Website: RickPerry.org Article: State-Bailout Trap: Gov. Rick Perry fights to preserve the fiscal autonomy of Texas Author: RickPerry.org Accessed on: 10/18/2010

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