With low taxes and fewer regulations, Texas is known as a business friendly state. But it really depends on what business you are in. This was evident in the 2017 legislative session when law makers imposed new restrictions on small breweries. Craft brewers who produce more than a specified amount of beer and sell directly to consumers must first sell their beer to distributors, and then repurchase that beer from the distributor before they can sell it to consumers. Beer distributors supported the bill, while craft brewers opposed it.
While this regulation impacts a relatively small number of businesses (about 200), it’s not the number of victims that makes this a dangerous piece of legislation. It’s the principle that underlies the legislation that poses the danger. While regularly speaking about the need to protect property rights, the legislature brazenly trampled on property rights.
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