http://www.nationalreview.com/exchequer/256614/no-paul-krugman-texas-not-broke
No, Paul Krugman, Texas Is Not Broke
January 7, 2011 2:37 P.M.
By Kevin D. Williamson
In terms of harbingers of the apocalypse, it isnt exactly dogs and cats living together or John Bolton exchanging facial-hair-grooming tips over sugary mint tea with ayatollahs, but, brace yourselves: Texas is facing a projected budget deficit. I know, I know: horrors, right?
Paul Krugman is practically rubbing his hands together with glee like some thin-mustached and top-hatted melodrama villain: Bwahahaha! If Texas goes down, conservative economics goes down with it!I shall rule the world! Look for the usual liberal snots to be talking up the story: Texas is finished, baby!
Keep your pants on, professor. Texas is not going to have a budget shortfall.
Texass present situation is not exactly unprecedented. It happens in Texas from time to time: You have a state with no income tax, property taxes assessed at the local level (where the taxpayers are apt to fire the taxspenders), and very little else, revenue-wise Texas has one of the lowest tax burdens in the country which leaves the state sales tax and the 1-percent franchise tax, which is a fancy way of saying a weird little business-revenue tax on firms with more than $1 million in sales. (Hey, New Jersey: Howd you like to trade your current state-tax burden for a 1-percent business tax and a 6.25 percent sales tax?