Fellow Texians, as we enter the third year of the independence of the Second Republic of Texas, it is well to look at what has been accomplished, and what remains to be done. This State of the Republic address will look at our governmental institutions, our economic policies with their benefits, and our security policy with the international implications on the current world scene.
We have restructured our political systems to protect individual liberties and property. We have restricted citizenship in the Republic of Texas to those who meet standards which are easily attainable by those who want the privileges of citizenship. No longer does merely being born inside the territorial limits of Texas qualify one to be a citizen of the Republic. For example, those able bodied men who refuse to perform military service lose the right to vote, just as in the First Republic of 1836.
We have eliminated and restructured government programs. Charitable programs and child protective services are now performed by religious institutions. The Insurance and financial regulatory boards have been eliminated in favor of free enterprise and having disputes resolved by the legal system, which has been restructured to allow for the average citizen to obtain justice. Transportation has been revamped to eliminate toll roads, prohibiting any future toll roads, and eliminating annual registration fees and inspections of vehicles. In return, you are liable for any damage you cause with you vehicle. Licensing requirements for occupational trades have been eliminated. TXDOT is now solely responsible for the construction and maintaining of public roads.
Other agencies have been restructured. The Texas Railroad Commission has been tasked with ensuring that future projects make extensive use of existing right of ways, freely negotiating with property owners for future access, and increased review of any proposal which will use the power of eminent domain. Spending per student in public education has been reduced by 30%. We are well along the way to returning the public schools to local control and freedom of choice of school for parents to decide the manner of education that is best for their children. The Texas electrical and water systems have been strengthened to support resiliency and future growth. The Texas Workforce Commission is now a jobs bank for private employers, a function in the process of being turned over to a non governmental organization, so that the TWC will soon be limited to processing applications for residency in order for more people to move to Texas to work and invest in our economy.
All of these actions are based on the principle that our government has four legitimate functions: 1) The defense of the territorial integrity of Texas 2) The protection of the rights of our citizens 3) Maintain the inviolability of private property 4) A legal system that administers justice and fairly resolves disputes under the principles of the English Common Law. We believe as did Thomas Jefferson – “The government that governs best, governs least.”
Our political institutions have been restructured to meet the needs of an independent republic. The House of Representatives has been increased to 525 members. Each county has at least one representative. As a result, the ability of private organizations to influence legislation has been reduced, and almost half of the House represents districts of a size, where citizens are well acquainted with their representative at the capital. The Senate has increased to 100 members for like reasons. Combined with the Constitutional provision of “can’t vote, can’t contribute” the balance of political power is better placed in the hands of the citizenry. While it is true that this system gives more power to rural regions, this is by design as this is where the core being of the soul of Texas resides.
Sound money is the foundation for a sound economy. The Texas Dollar (TXD) being a silver coin of the same silver content as the original US Dollar and Spanish 8 Real coins, preserves the wealth of our people by taking the power to create inflation away from the government or financial institutions. In terms of the US Federal Reserve Dollar, the value of the TXD has increased from some 20 USD to the TXD to almost 30 USD to the TXD today. Because people can depend on the value of their money, combined with our tax policies, the size of the economy has grown from 100 Billion TXD to some 125 Billion TXD today.
We have made a simple proposal to the businessman of Texas – your business will not have income or property tax, you will have a level playing field on which to compete, and we will not impose unlawful and excessive regulation on your business. In exchange, you will have to employ only those persons legally present in the Republic of Texas, and be subject to potentially severe consequences for violating the few laws we do have. A documented labor shortage in the skill you need, results in an immigration application to the Texas Workforce Commission, when there are an insufficient number of Texas with those skills needed, the applications are approved to bring skilled immigrants into Texas. An efficient labor market benefits all.
There is no income tax nor are there property taxes in the Republic of Texas. Government is financed via a transactions tax of 10% on every transaction and via tariffs. This yields a budget of some 13 Billion TXD minimum this year that is not reflective of the tax on gasoline which is reserved exclusively for the construction and maintaining of roads. Of this budget, 2 Billion TXD goes to recipients of pensions in the former US Social Security and military retirement systems. Another 2 Billion TXD is spent on the school system, which has been a Texas tradition since the days of the First Republic. Services provided under the old Medicare system, which we have continued, will cost another 2 Billion TXD. The cost of government, including the legal system, public safety and prisons are 500 Million TXD. Another 500 Million TXD will be spent on Texas pensions, debt service, and services such as parks. The largest singe item of expenditure is security and defense, which is budgeted at 5 Billion TXD.
We have taken the opportunity presented to us by independence to reform our school system. Alternatives to the public school system are encouraged. We have placed more emphasis on using technology to replace textbooks and changing the educational model from common core, which has been eliminated to a model based of a ground foundation of basic knowledge, an appreciation for western civilization, the history of Texas, and preparation for useful life’s work or academic study for college, if a student has the aptitude. This has allowed us to gain more efficiency while the local districts gain control of the curriculum and for those who have not been so well managed, the rising enrollment provides the revenue by which they can start to unwind their debt positions. The final decision on which school gets the Texas School Voucher, is made by the parent.
Just the militia mobilization for the border security mission consumes some 1 Billion TXD per year, as we pay each militia member 6 TXD per day while on his 30 days of active service. The size of our universal militia allows us to ensure that an individual is only subject in involuntary duty for no more than 30 days every two years in addition to normal training. The standing military forces are budgeted at 2 Billion TXD, and the remaining 2 Billion TXD is used for procurement and operations. Texas is now truly a nation in arms and need fear no other power on this planet.
We have a projected surplus of 1 Billion TXD for reserves and contingency spending for emergencies. Thus, we have funds to deal with natural disaster of any foreign threat.
As part of the independence agreement, Texas assumed some 2 Trillion USD in debt. We decided to issue USD denominated 30 year bonds bearing 1% interest. The play was that these bonds would be backed by the Republic of Texas, rather than finance a deal to buy or assume US Treasury bonds. These bonds sold at a premium, so that we self financed 4 years of interest payments via the sale of these bonds. As we expect inflation in the US to increase, these bonds will ultimately trade at a steep discount, and allow for us to retire those bonds at an ultimate cost of less than 20 Billion TXD.
With this change of economic model under which we operate, there has been a shift in population. With the elimination of welfare programs, in favor of a private charity model, some residents have decided that Texas is not for them. The decision not to earn their daily bread is theirs alone. This has been more than offset by those who find Texas a land of opportunity and wish to avail themselves of this opportunity. Our population has now increased to some 30 million, and we are well on the way to a population of 35 million in order to support our growing economy.
In addition to sound money, our economy is growing because we attract savings and investment with a set of protections for the financial system. Our privacy laws extend to personal property including financial assets. Our banks now attract worldwide savings and investment, resulting in mortgage interest rates of less than 1%, and it must be said, a slight deflation. This makes you savings and investments more valuable, as we will not destroy the value of your money, and you can predict that your currency will be stable, so that price changes reflect changes in value. This is the foundation of a free and fair economic system.
We now turn from the domestic situation which is in a favorable state for the prosperity and security of Texas, to the foreign arena, where peril is rampant. We face a number of challenges demanding our attention, careful consideration and decision as to what actions we should take.
One guiding principle of our policy is a disavowal of the legitimacy of the United Nations. Texas will not cede any sovereignty to a global organization as we are a sovereign republic, subject to no foreign jurisdiction. We do participate in organizations such as the International Postal Union, with facilitate trade and commerce.
Our international relations are dominated by our neighbors to the south and to the north. We have taken the steps necessary to secure our borders at tremendous expense to ourselves. This step was necessary, along with the domestic reforms needed to remove the incentive for employers to hire people who did not have the legal right to work in Texas. We are seeing success in this activity, but the continued efforts of Mexican drug cartels to smuggle goods and people through Texas to the United States continues, especially by those cartels which do not have access to the borders of New Mexico, Arizona, and California. Our hope that this increases the internal pressure on the Mexican government to institute needed reforms for the greater liberty of the people of Mexico.
Obviously, our foreign relations are greatly influenced by agreements achieved with the United States. We were fortunate to obtain agreement with the US that the Republic would take over the obligations of Social, Security, Medicare, and military pensions from the United States government for Texans in exchange for military bases located in Texas and a quantity of military equipment. We have equipped our standing military with this equipment and the US government was relieved of the obligations of some entitlement programs and public debt. We are fortunate that an administration eager to rid itself of a state that it considered standing in the way of their political objectives, was in place to reach agreement.
There are treaty areas in which we are unlikely to reach agreement. The United States, and other countries are eager to have tax treaties with the Republic of Texas. The Republic is unlikely to reach such an agreement with these countries as they have no benefit to Texas. As we have no income or property tax, there is no claim that we would ever make on our citizens working in other countries or our companies operating in other countries. Such treaties would only work to the disadvantage of citizens of other countries working in Texas by having Texas businesses regulated to report financial information to foreign governments. Even worse, would for Texas residents to have to report information about themselves to a foreign government. This we will never allow. We will never agree to the laws of other countries being applied inside the borders of Texas.
Trade agreements for increased commerce are in negotiation. Obviously, we conduct a great deal of trade with the United States, as we have a number of connections with that country. We have shared a common history for almost 175 years and have many friends and sympathies with our friends across the border. Any agreement would be based on the principles of true free trade – in exchange for dropping our 10% tariff, any tariff on our goods will go away. We give you the same deal you give us. Thanks to the efforts of the Free Democratic Party of Switzerland, we have such an agreement in place with Switzerland, and some Swiss banks now operate in Texas because it is easy for them to do so, just as we have companies that operate in Switzerland. The Swiss banks can maintain the banking secrecy laws of Switzerland, which are totally compatible with our laws. We also included right to work in the other country with the Swiss agreement as we have comparable standards of living and cultures. The Republic of China (Taiwan) is also close to such an agreement with us.
Obviously, events in the United States have an impact on us. The causes that impelled Texas to separation continue in the US unimpeded. Their economy is collapsing, debt is increasing and even more liberty is being lost. We can expect other states to find such actions intolerable, and it will be the decision of our legislature to decide if Texas will render assistance to these states. Potentially a new alliance of states may be created with a common set of defense and trade agreements. Texas should welcome any development that leads to individual liberty.
As we turn to Europe, tensions remain high. Russia has essentially occupied Ukraine as the US leadership of NATO faltered, and the western European allies when forced to act or accede, faltered as well, being preoccupied with events in Greece and their own Muslim populations. The eastern European countries are now the defenders of liberty in Europe and I suggest we would be wise to try to influence events there in favor of freedom. Joining NATO would impose restrictions on our flexibility in this area, and while I urge cooperation with NATO, our agreements should be arrived at independently with each nation in order to maintain our flexibility of action. This may include the Texas Military Forces being dispatched to the Baltic States, Poland, and the Czech Republic for various missions.
In Asia, the rise of the Peoples Republic of China presents a challenge. The Republic of China (Taiwan), Japan, South Korea, and the Philippines feel directly threatened. Due to geography, we are not a Pacific power, but these events require our attention. Territorial expansion by a power that does not assure its citizens basic liberties, is not in our interest, and we may place additional tariffs of goods from that country.
In the rest of the world, we face a conflict of cultures. Islamists continue to seek to destroy western culture and impose its form of religion on us all. This we can not permit, and in this area we need to have a well thought out and effective policy. I suggest that the best means to deal with this threat is in the realm of unconventional and non attributional warfare. This will require us to establish a first class intelligence service and the capability to act on information thus developed.
While we have achieved great things here at home in Texas, and we are well on the way to returning our people to freedom and economic prosperity, we have to resolve that we are prepared to take the struggle for freedom to the enemies of liberty. The road is likely to be long and the journey may not be easy, but our worthy ancestors who bequeathed liberty to us, expect that we will do our duty, to ensure liberty to our posterity.
This term of office has set the course for a prosperous and secure Texas. We are guided by those who tread this path before us in 1835 and 1836. Those heroes have set the markers by which we must navigate to the future. Many more have labored in the past years to achieve the greatness we are attaining. Let us resolve to be faithful to the trust they have given us.
In the nest election for President of the Republic of Texas, I ask that you consider carefully and choose wisely who should be the next occupant of this office. The future of Texas is in your hands – we have striven to make it so. Let those freedoms not again be put at risk.
Let me end these remarks by giving you my thanks for your efforts and support, which will remain in the annals of the history of mankind.