The Politics of “Fair Share”: Gina Hinojosa's Undefined Promise
Gina Hinojosa, governor-elect for Texas, has made a familiar promise:
“On Day One as governor, I’ll freeze residential electricity rates and make corporations finally pay their fair share.”
There it is again. That wonderfully convenient phrase Democrats seem so fond of using: “fair share.”
It sounds reasonable. It sounds righteous. It sounds like somebody is finally going to make the bad guys pay.
But there's one rather important question that never seems to get answered:
Exactly how much is a “fair share”?
Is it 10%? 20%? 50%? Is it a percentage of profits, revenue, or something else entirely? How much are these corporations paying now, and how much does Hinojosa believe they should be paying?
More importantly, what objective standard determines that number?
Hinojosa's campaign argues that corporations driving increased electricity demand, particularly data centers, should bear the associated infrastructure costs rather than passing those expenses along to residential customers.
That's a legitimate policy question, and one worth discussing.
But making a corporation pay for infrastructure required by its operations is not necessarily the same thing as making it pay more taxes. Those are two entirely different propositions, and voters deserve to know which one they're being promised.
Hinojosa also advocates eliminating corporate subsidies. Fine. Which subsidies? How much do they cost? Which would she eliminate, and what would be the economic consequences?
These are not unreasonable questions. They're the questions that ought to be answered before asking Texans to endorse a policy.
Instead, we're handed another political slogan.
And that's what bothers me about so much of the Democratic Party's economic rhetoric. Phrases like “tax the rich,” “make corporations pay,” and “everyone should pay their fair share” are repeated endlessly, frequently without defining the actual financial standard being proposed.
The implication is always the same: somebody else isn't paying enough, and government needs more authority to correct the supposed injustice.
But fairness isn't a number. It's a judgment. And unless politicians explain the criteria behind that judgment, “fair share” means whatever they decide it means at any particular moment.
There's another problem with Hinojosa's promise: freezing electricity rates.
Texas electricity prices are influenced by generation costs, transmission infrastructure, fuel prices, regulatory decisions, and market conditions. A governor cannot simply wave a pen and make those economic realities disappear.
If residential rates are frozen while underlying costs continue rising, somebody must absorb the difference. Who? Electricity providers? Investors? Taxpayers? Other ratepayers?
And what happens to investment in the electrical infrastructure Texas needs?
A rate freeze may sound attractive to voters, but a campaign promise isn't an economic plan.
I oppose Hinojosa's candidacy, and I disagree with much of the Democratic Party's approach to taxation, regulation, and government intervention in the economy. I believe politicians should have to justify taking more money or imposing additional costs rather than simply invoking an undefined notion of fairness.
If Hinojosa believes corporations are not paying enough, she should demonstrate it. Show us the figures. Identify the specific taxes, subsidies, or infrastructure costs involved. Explain what she proposes to change and what those changes would accomplish.
Until then, “fair share” is little more than a politically useful phrase that allows voters to imagine whatever definition of fairness they happen to prefer.
So, Hinojosa, here's my question:
What, precisely, is a corporation's fair share? How much are corporations paying today, how much should they be paying under your administration, and what objective calculation establishes the difference?
Because if you cannot define what constitutes a fair share, you cannot credibly claim that anyone is failing to pay it.
And Texans deserve something considerably more substantial than another Democratic campaign slogan.