Star Locke doesn’t know basic economics.
Gamespot reports that a Corpous Christi rancher, Star Locke, is proposing a series of radical proposals in the gubernatorial race. With an eye to eliminating property tax, he proposes the following:
- $10,000 per abortion tax paid by medical clinics.
- 50% tax on “violent video games (to manufacturers)
- 10% sugar-filled soda tax
(Figures above as reported by Amarillo Globe News; Gamespot reports 100% tax on games and 50% tax on soda.)
If this is true, then apparently, Star Locke isn’t familiar with basic economics. Here’s why.
$10,000 per abortion
This doesn’t change user behavior per se, and is geared towards causing medical providers to stop doing them. Either a) they will stop doing them, and people will start seeking abortions out of state, or b) they will continue doing them, and drive up the cost of health care, as this always gets passed down in expenses. After all, there’s no reason they would pass these costs directly to the people getting abortions. You might not pay this amount in property tax, but you would in health. Hope you don’t get sick in Texas!
Incidentally, if this is sufficient to reduce the number of abortions performed, then it may have other interesting effects. Steven D. Levitt made an interesting case in the book Freakonomics, which examined the link between crime rates and abortion. Statistics back up his findings, meaning that if such a policy were enacted, we might see a rather nasty Texas in twenty years — it’s a good thing they can get guns. They’ll need them. Think New York in the eighties.(Read the book for the rather compelling argument.)
50% violent video game tax
If this measure succeeded, then it would have the benefit of having violent video game publishers reduce or stop sales to Texas. On the face of it, this seems like a good thing. However, again, it’s not hard to obtain games from out-of-state sources. I imagine the surrounding states and online stores would be able to pull in a little extra revenue from this. However, this is revenue that would have gone to Texas-based stores. I.e., your cutting down on violent video games being sold in state, but you’re doing so by cutting out sales in your state. I hope Locke was putting that estimated lost sales tax revenue into his calculations! Less sales tax, less revenue for stores, and no effective curbing of behavior — it’s a lose-lose-lose proposal.
10% soda tax
I’m not sure if this is directed at manufacturers or end users, but in either case, the same arguments as for violent video games holds true. Plus, this would probably increase the sales of sugary juices, which aren’t exactly better. Like the abortion tax, these costs would filter down to the end user in terms of pricing. So, it’s much the same as taxing end users. You don’t pay property tax, but you pay it on the soda! However, if people could easily switch from soda to other sugary drinks, then this won’t be very effective anyway. I’m also skeptical that eliminating soda would help fight obesity — it’s a diet change and the addition of exercise that will foster change. Soda will only help so much. If you really want to make a difference, go after the high carb-based foods — those turn directly into sugar, and are probably the bigger problem in people’s diets.
It’s simply far too easy to get out of state to make these measures effective. (Yes, I know Texas is a really big state.) There are fundamental problems with each of the assertions he’s listed, and it doesn’t take a genius to pick these out. Anyone with a freshman course in economics could see these weren’t effective ideas.
Plus, Locke is ignoring the rule: The greater the success in the former, the less the success in the latter. Let’s say he’s successful in curbing all of these things: abortion, soda consumption, and violent video game sales are all reduced. The tax revenues from these things would also be reduced. With no property tax and little revenue from these new taxes, how is the government going to be funded?
However, the more likely scenario is a blend of the above: the measures themselves would only marginally affect things, and not enough revenue would be generated. Marginal changes in human behavior and no money — it doesn’t sound like Locke can eliminate property taxes this way. I recommend Locke hire a fiscal policy advisor for his campaign — he can probably take a tax deduction on it.


