Every number, checkable

Check our work

We do not ask you to trust the Texas Nationalist Movement. We ask you to trust the IRS, the Treasury, and the Federal Reserve, and to check every number yourself. Here is how the report was built, and where every figure comes from.

How the report was built

The two questions

The debate usually blurs two. Balance of payments asks whether more federal money flowed into Texas in a year than Texans paid in federal taxes. Fiscal capacity asks whether Texans, taxed as they are now, could pay for the government an independent Texas would actually need. We answer the second, and meet the first head-on.

The window

Six most recent fiscal years with complete data, 2019 through 2024, averaged. A six-year average cannot be accused of cherry-picking a good year, and it absorbs the pandemic rather than hiding it. Where a newer figure is published and material, we note it.

The carve-out rule, applied symmetrically

The cost of governing Texas is what an independent Texas would run and pay for. It excludes the portable benefits that follow a person wherever she lives, Social Security, Medicare, veterans' cash, and federal pensions. And it excludes them from both sides at once: where a benefit comes off the cost side, the payroll tax that funds it comes off the revenue side too. That symmetry is the whole reason the honest finding is self-sufficiency and not a surplus.

COVID

One-time pandemic relief, about 50 billion a year concentrated in 2020 and 2021, is stripped out as the emergency spending it was. We show the result with it out and with it in. The conclusion holds either way.

No double counting

Federal grants that pass through the state budget are counted once, on the federal side, and state spending means state-funded spending with the pass-through removed. The waste and regulatory figures are never added on top of spending already counted.

Sourcing

Every number that decides the direction of the conclusion is published, primary data. Where Washington has stopped publishing a Texas figure, we built an estimate, showed the method, and labeled it.

What we do not do

This is a snapshot, not a forecast. It measures today's tax flows against today's cost of government and rests on no prediction about the post-independence economy. Where a figure is a model rather than a government tally, we say so and do not lean on it. Anyone who claims to forecast a post-independence economy to the decimal is selling something.

We tested it against ourselves

Before release we put the draft in front of hostile reviewers, an economist, a fact-checker, and a lawyer, and told them to break it, then verified every figure a second time. What that changed, and what it could not, is disclosed in the report.

Every source

Every load-bearing figure traces to one of these. Most are downloadable in an afternoon.

The full report also carries the year-by-year ledgers, a note on exactly what we estimated and why, and an account of how we red-teamed ourselves against a panel of hostile reviewers.

Read the full reportFree · 40 pages · every figure sourced

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