Rise of the Transfer State: Guaranteed Income Programs in Texas’ Cities and Counties

This paper examines guaranteed income programs instituted by Texas cities and counties.

Key points:

• The Texas Constitution prohibits political subdivisions from gifting public monies or things of value to private persons. Taxpayer-funded guaranteed income programs run afoul of this prohibition.
• In addition to being unconstitutional, guaranteed income programs cultivate dependency on government and detract from productive behaviors.
• Instead of expanding the welfare state, local governments interested in easing the strain of poverty should reduce the tax burden, eliminate regulatory excess, and ease land-use restrictions to promote property ownership and development.