Tax Breaks for Sporting Events Raise Questions
When lawmakers gave Comptroller Susan Combs more power to spend tax money to attract sporting events and conventions to the state, the idea was to generate economic development in Texas that might go somewhere else.
But in recent years Combs has used that power to approve millions of dollars in expenditures on events that originated here and don’t appear to be leaving Texas anytime soon.
Over the last two years, Combs, a Republican, has signed off on spending $2 million in state tax money to help defray the costs of the Cotton Bowl, a postseason college football game held ...
Comments (8)
wfborges
This program also undercuts the questionable rationale for the public funding of stadiums. As Ray Perryman and other economists have noted, sporting events generally compete with movie theaters, restaurants and other venues for limited consumer entertainment dollars within a community, transferring dollars into the pockets of the favored promoters and venue owners for zero net economic growth. Only when a national or international event is brought in -- say a Super Bowl at Jerry Dome or in Houston -- does the state get an economic boost. In theory, the state is supposed to repay its investment through the increase in sales taxes. But waiving those taxes is essentially corporate welfare and a tax expenditure that promotes sales tax increases for the cities hosting events. What would be interesting to know is how much revenue the state makes from sales taxes on these events and whether that exceeds or equals the amounts paid out. If the sales tax income is less, then one has to question the motives of state officials who promote such payoffs.
Cynthia Casper Robertson via Texas Tribune on Facebook
The State of TX pisses off a lot of money with this sort of thing. Also, does the same when giving tax breaks to corporations who after the expiration of their tax break pick and move their business to somewhere else.
Adam Silva via Texas Tribune on Facebook
Texas government priorities: Less money for education, more for sporting events.
Another 99%
Clerarly, the current Texas governmennt puts itself way above the interests of the Taxpayer. The Perry Gang, needs to be un-elected 100%. Agreed, eduucation is more important than supporting “Rich” sports owners and supporters.
Yet I don't hear any outrage from the current Voters. Boots, Hats, and Slurred Speech, rules for candidates, not good government.
Martha Dunkelberger via Texas Tribune on Facebook
so, the money's already gone and our kids are crammed into classrooms and our teachers are getting laid off. Beautiful.
Luisa Inez Newton via Texas Tribune on Facebook
Just like elite Romans, give the masses the circus (and forget the bread)!
Neil Moyer via Texas Tribune on Facebook
Gifting TX tax $$$ to Combs supporters! Now, what about Perry's slush funds?
Rick Scott McGuckin via Texas Tribune on Facebook
Socialism for corporations, hard capitalism for the rest of us