AUSTIN—The following statement is from the Texas Association of Business (TAB) regarding the PolitiFact Texas’ rating of “Mostly False” on TAB’s economic impact study related to discriminatory legislation:
The Texas Association of Business will continue its efforts to protect Texas businesses and families from any potential economic harm that follows when a state adopts discriminatory legislation.
St. Edward’s findings indicate a range of detrimental economic effects ($964 million to $8.5 billion) that might occur because of discriminatory legislation, however, we don’t need studies alone to prove the negative impact of this unnecessary legislation. The hard data exists in real time and in dramatically quantifiable ways when you look to North Carolina and Indiana today.
Just this weekend, North Carolina learned that if the state does not repeal HB 2, North Carolina could lose $250 million in NCAA events. That’s before including performances, conventions, meetings, conferences or corporate investment – all of which continue to be cancelled in North Carolina, hurting small businesses, tax revenue, travel and tourism.
This represents the tip of the potential iceberg for Texas, and we must avoid this collision course by rejecting discriminatory legislation like SB 6 and HB 1362. The Texas Legislature can protect Texas families and businesses from unnecessary, costly legislation and protect our state from the wide-ranging harm that discriminatory legislation delivers.
While PolitiFact may take issue with the specific amounts in our study, outside experts and economists* consulted by PolitiFact echoed TAB’s concern that discriminatory legislation will have a significant, negative impact on the Texas economy.”
TAB wants to be clear about a number of points including:
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*Outside experts cited by PolitiFact:
Experts including economist John Gnuschke of the University of Memphis mostly saw no major problems with the research approach. Gnuschke wrote: “State-to-state impact comparisons are widely used for studies of this kind but are difficult given the wide range of policy variations and economic conditions in each state,” Gnuschke wrote. “Individual states find it difficult to assess the impact of any policy.”
A Wharton professor, Maurice Schweitzer, and Don Hoyte of Austin, a former 20-year analyst for the Texas state comptroller’s office, each said he’d expect an anti-LGBT law to be detrimental to the Texas economy. Schweitzer said, though, precise “figures are difficult to forecast, because the effects can snowball—once one company or sporting event boycotts a state, others are more likely to follow. Though I cannot forecast the exact amount, I am positive that a measure limiting transgender bathroom choices will harm the Texas economy.”
Source: PolitiFact Texas (Posted Feb. 3, 2017)
As the state chamber of commerce, the Texas Association of Business is the most influential and dominant voice for public policy issues affecting business in Texas. Through proven results-oriented advocacy and member services, TAB develops a climate in Texas which enables thousands of our business members and their employees to operate efficiently and profitably, thus creating new jobs. TAB is proud to be the official state partner of the National Association of Manufacturers.
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