Combating Inflation in Texas: A Conservative Blueprint for Fiscal Discipline and Economic Growth
Runaway inflation caused by Joe Biden and reckless government spending continues to erode the purchasing power of Texans. As conservatives, we must advocate for state-level policies that prioritize limited government, free markets, and individual opportunity to mitigate these pressures. While state leaders cannot control monetary policy or federal spending, Texas can still lead by example by embracing limited government, free markets, and fiscal discipline to deliver results.
Texas is well positioned to lead. With its biennial budget surpluses, there’s an opportunity to enact reforms that cut costs for families and businesses without growing government and return money to taxpayers. By cutting spending, reducing taxes, and slashing burdensome regulations on key sectors, Texas can increase affordability while strengthening long-term growth.
Limiting State and Local Spending Growth
Capping government spending increases to population growth plus inflation embodies fiscal conservatism, preventing government expansion that overheats the economy. Unchecked spending contributes to inflation by diverting resources from the productive private sector, increases public debt, and picks winners and losers in the marketplace. We must return budget surpluses to taxpayers rather than fund new government programs. Cutting spending unleashes growth, reduces debt, and alleviates inflationary pressures from misallocated funds. We must ensure the government lives within its means and protects taxpayers from future price hikes and tax increases.
Cutting Property Taxes
Texas families face some of the highest property taxes in the nation, a burden exacerbated by rising appraisals during periods of inflation. Returning surpluses to the taxpayers by expanding homestead exemptions and buying down property tax rates lowers housing costs, improves affordability and increases disposable family income. Recent reforms, like 2025’s voter-approved homestead exemption increases, have provided savings of up to $930 per household, proving property tax relief is one of the most effective tools for increasing affordability.
I proudly support Governor Abbott’s recent property tax reform plan that will provide long-term relief by capping appraisal growth and curbing local spending, promoting affordability without shifting burdens elsewhere. This conservative tactic empowers homeowners and stimulates investment.
Reducing Franchise Taxes
Targeted reductions in franchise taxes will lower costs for small businesses, encourage innovation and investment, and spur job creation. Furthermore, the savings are passed on to consumers through lower prices. While some argue tax hikes curb inflation, evidence shows cuts aligned with spending restraint achieve better outcomes by avoiding trade-offs that harm low-income households.
Unleash Texas Energy Production
Streamlining permits for oil, gas, and renewables bolsters Texas’s energy dominance, increasing supply to lower prices—a key inflation driver. Deregulation since the 1990s has reduced real power prices. Consumers benefit from choice and lower rates compared to regulated markets. Unleashing the power of Texas energy by reinforcing free-market principles strengthens energy independence, creates jobs, and shields Texans from unpredictable global supply shocks.
Improve Housing Affordability
Outdated and burdensome building codes, such as excessive energy-efficiency standards, aesthetic mandates, and redundant inspections and permitting, impose costly mandates that add thousands of dollars to construction costs and delay the start of new housing inventory. Streamlining codes and cutting unnecessary regulations reduces development timelines from months to weeks and cuts costs by 10-20% per home, making entry-level housing viable again in suburbs and rural areas. We should empower property owners and builders to respond to demand, fostering competition that naturally lowers prices, just as deregulation in energy made Texas a powerhouse.
Conclusion
Texas can mitigate inflation by doubling down on a conservative framework that unleashes supply-side forces and curbs government overreach. Spending caps, tax relief, and deregulation encourage economic growth. While federal policy rightfully dominates the inflation discussion, state reforms can provide localized relief and set a national example. Texas lawmakers should advance these in the next session, monitoring impacts on prices and jobs. By embracing limited government, Texas can secure prosperity for generations.
Fred Tate for HD 98
