Although Apple (or any other business) should never get a tax subsidy to do what is in its economic self interest, I was willing to play along with the charade of a “tax incentive” in exchange for Apple’s commitment to hiring a modest but verifiable number of economically disadvantaged Travis County residents. After all, Travis County has 37% low income residents, 41% housing cost-burdened residents and 22% uninsured residents.

I heard for the first time today that Apple is no longer willing to entertain a commitment to hire these economically disadvantaged Travis County residents. I am therefore no longer willing to entertain relieving Apple of its tax responsibilities.

The charade is over. The $7 million Travis County subsidy approved today is not a tax incentive. It is a gift.

As I head out with my family to Port Aransas this weekend, I want to thank some of those who have worked tirelessly to preserve my right and the right of all Texans to plant their towels and coolers on the dry beach. Thank you, Babe Schwartz (D) for passing the OBA in 1959.  Thank you, Representative Richard Peña Raymond (D) for enshrining the OBA in the Texas Constitution with 77% of the vote in 2009. Thank you, Attorney General Greg Abbott (R) and Land Commissioner Jerry Patterson (R) for your steadfast support of the OBA in the face of the Severance litigation.  The people of Texas are honored by your bipartisan efforts to protect our collective heritage in the Texas coastline.

The best ways for county government to attract and support businesses of any size are to keep taxes low, services high and infrastructure well maintained.  Preferential tax treatment of wealthy corporate citizens erodes a county’s ability to do these things.  Therefore, preferential tax treatment should only be entertained where the foregone taxes will “buy” a greater public good that the market isn’t supplying on its own, such as competitively-priced clean energy technology, rehabilitation of a blighted neighborhood or jobs for the economically disadvantaged.

In the negotiation it has been argued that Apple is a star that may locate anywhere it chooses and therefore tax rebates are necessary to incent its expansion in Austin.  While the first part of the argument is true – Apple is certainly a star that may locate anywhere it chooses – the necessity of tax rebates is true only to the extent that similarly situated governments continue to participate in bidding wars that guarantee preferential tax treatment for our largest and least needy corporate constituency.  Even if Phoenix, Arizona, is or was a serious contender for Apple’s expansion plans, a bidding war between Phoenix and Austin serves only to guarantee that Apple will receive preferential tax treatment wherever it locates not because Apple needs it but because Apple commands it.

I am willing to overlook the weakness in the “competitive site” argument if Apple helps the County achieve some public good that the market isn’t supplying on its own.  I have, therefore, suggested to Apple that it:

1. guarantee that these new jobs will be filled predominantly by Travis County residents;
2. recruit, train and hire economically disadvantaged residents; and
3. participate in funding the Lone Star Rail stop servicing its campus.

Apple could significantly contribute to the County’s goal of eliminating poverty through full employment. And, Apple could set the trend for private sector participation in making our regional rail system a reality.  These are valuable public goods justifying a rebate of taxes.

In the last 72 hours I have been encouraged by communications from Apple that it is seriously considering my proposals. I will therefore seriously consider its rebate rather than rejecting it out-of-hand as poor public policy guaranteeing a tax holiday for the wealthiest among us.

What you can do:

• Attend and testify at public hearings on the proposed rebate.
• Write or call members of the Commissioners Court with your ideas for appropriate tax abatement and rebate policies.
• Join the policy debate within other local governmental entities through attending public meetings, writing “Letters to the Editor” and talking to your neighbors and colleagues.