Epic Real Estate Investing - Texas Is Running a $268M Tax Scam (And You’re Next) | 1508

Episode Date: August 8, 2025

In this episode, Matt exposes how Texas counties are using disaster declarations to quietly raise property taxes—without voter approval. He breaks down the legal loophole in Texas Tax Code 26.042, explains how recent disasters have triggered massive tax hikes, and reveals why promised tax relief often doesn’t reach homeowners. Matt shares real stories, practical tips for protecting yourself, and what you can do to fight back against a system that’s pricing people out of their homes. BUT BEFORE THAT, hear about $600 checks, $36.7 trillion debt, and lots more! Useful links: https://myescapebook.com/escape-2?video=0KDH7rzZZWk https://epicearnwhileyoulearn.com/yfd?video=0KDH7rzZZWk https://intensive2025.com/?video=0KDH7rzZZWk Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-i-a's.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. President Trump has floated the idea of sending out $600 rebate checks to Americans. President Trump says America's tariff avenue windfall could show up directly in Americans' bank accounts. We're thinking about a rebate because we have so much money coming in from tariff that a little rebate for people of a certain income level might be very nice. $600 checks could be hitting your mailbox soon, not from stimulus, but from tariffs. Yep, the tax that wasn't supposed to work. And they said no one ever wins a trade war. Well, we just did.

And Jim Kramer, CNBC's Panicking in Chief, is dropping F bombs because the economy is so strong. Our biggest problem is we have so much growth that the Fed will have cut. What the fuck? Jesus Christ. Oh, my. Oh, my God. I'm so sorry. I'm so sorry.

I take it right back. Everybody's right back. Honestly, God. The economy's fattenes. The economy's fattenes. The economy's fattenes. Republicans Senator Josh Hawley of Missouri has officially introduced this piece of legislation entitled, American Worker Rebate Act of 2025.

It's based on the belief that the federal government is bringing in a record amount of tariff revenue. And as a result, the American people deserve a cut. No new debt, no inflation. Just a payout from a trade policy the media said would fail. This is not Liberation Day. It's recession day.

Terrorists that, as I predicted, are clearly inviting a recession. No one wins a trade war. That's just, we know that. The Chinese are in a much stronger position. We're increasing inflation because the prices are higher because of the tariffs. They screwed it up and they really made, they did it a totally ill-advised way. And I was very let down as someone who really truly believes the free trade is awful for the American working person.

This is what they came up with. Jeez, come on, have some gumption. Have some mass. We have so much money coming in. We're thinking about a little rebate. And if it passes. This could be the first of many. Here's how it works.

Who qualifies and why this could be a game changer, both politically and economically. So first thing, what's in the bill? Well, it's called the American Worker Rebate Act. If you make under $75,000 a year or $150,000 if you're married filing jointly, you'd get $600 per person. That includes dependence. So a family of four, that's $2,400. So where's the money coming from?

Not the Fed, not Congress, from tariff revenue. Customs duties collected on foreign imports have already brought in over $113 billion this year, and they're climbing. So instead of borrowing more, this plan takes that cash and sends it back to Americans. And yeah, Trump's into it. He's already said the idea, it makes sense. Because to him, this proves something big. The trade war worked, or it's at least working.

The stock market is at record highs. I know not everybody lives by the stock market, but I also drive around. I don't see a country in the Depression at all. I see people out there just living their lives. And I would have thought, and I got to own it, that these tariffs were going to sink this economy by this time, and they didn't. And let's unpack that. Back in 2018 to 2020, tariffs were slammed as inflationary.

and dangerous. Critics called them a tax on the American consumer, but now, that tax just bankrolled a direct benefit to the same Americans paying higher prices. Is it perfect? No, but it's not another trillion dollar package either. It's self-funded, and it's simple. If you pay more because of imports, you get a slice of it back. And that's not even the whole story, because while this rebate bill made headlines, something else happened. The EU caved. The early reviews are Ian on the new trade deal announced with the European Union. The Financial Times says the deal marks a victory for Trump. It's incredibly favorable for the United States. When you look at this, it's been very one-sided. Clearly, there has been an instance where the president has been using his threats of higher tariffs

as a negotiating tactic, and in this case, it certainly worked. Even Clinton guys are confessing Trump's winning. His top pollster says it's clear that the president is successful. exceeding and reshaping of the global economy. Last weekend, Trump cut a major deal with Europe. They were facing 30% tariffs. Now, it's locked at 15%. In return, Europe pledged $600 billion in U.S. investments and agreed to buy over $750 billion in American energy by 2008.

Certain industries like semiconductors and aircraft parts got tariff exemptions. It's the biggest trade pivot we've seen in years, And it doesn't end with just Europe. Other countries that have fully agreed or framework deals under Trump's tariff policy? Japan, locked in at 15% tariffs, pledged hundreds of billions in U.S. investments. Vietnam agreed to 20% tariffs in exchange for trade adjustments and energy cooperation. Indonesia, settle at roughly 19% tariffs, no retaliation on U.S. exports. The Philippines accepted 19% rates, plus details still negotiated.

South Korea, framework in place at 15%, similar to just. Japan's and the United Kingdom. Deal there was reached reducing tariffs on U.S. goods, especially in vehicles and ethanol. But that European deal, that was a big one. Finalized at 15% tariff rates, securing $600 billion in investments and $750 billion in U.S. energy deals. And then there are partial or pending discussions, not finalized yet. These deals are moving fast, though, so many may be done by now by the time you're watching this. So China, provisional framework delaying some tariffs, but no full, yet as of this recording. India ongoing talks there, 25% reciprocal tariff in force. Deal

expected soon though, if not already. The news, it's moving so fast this year. But here's why this rebate matters. The media said tariffs would spark chaos. Instead, they sparked concessions. And now they're generating checks, deals, and cash flow, not just for DC, but for you. This is turning into a global leverage machine. Tariffs used to be seen as punishment. Now, they're a bargaining chip to force capital inflows into America. And guess what happens if this $600 rebate passes? Politicians will want to do it again and again and again. Why? Because voters don't hate checks. And politicians know it. They've found the perfect re-election machine. Most economists, though, they remain a bit skeptical that any kind of rebate will happen and they want to see that money used

to help pay off the national debt. But why not? use this revenue to start paying off the national deficit? I mean, you may be thinking that because I certainly was, and I'll tell you exactly why in just a second, and you won't believe it. But here's the thing for real estate investors and homeowners. If this bill passes, that money floods into working-class households. You'll see bumps in rental activity, first-time buyers and move-ins, especially in red states where more households qualify for the full rebate, and the cash actually goes further there toward rent or down payment. But not everyone's on. board. Some GOP senators say we should use the money to pay down the $37 trillion national debt.

I mean, if they only knew what I'm about to show you here in just a second. But others say the rebate distorts the original purpose of tariffs. Or worse, that it's targeted political spending disguised as tax relief. And there's legal risk too. Trump's tariff powers are under review in court. If judges strike it down, future rebates could be off the table completely. So, the clock's ticking. And this might be the only one. that makes it to the finish line. But the bottom line, this isn't stimulus. It's a reward from a strategy that was supposed to fail, but didn't.

Tariffs created leverage, leverage created deals, and deals just might put money in your mailbox. But why wouldn't they use that money to pay down the national deficit instead? Because they could, but they won't, ever. Hope is not a financial strategy. Let's get back to work. I'm going to show you why the U.S. government will never pay down its trillions of dollars of debt, even though they could. And more importantly, why you should stop whining about the rigged system and just start copying what they're doing.

The economics of a country are the same as the economics of a individual or the economics of a company. $3 billion. That's how much the U.S. spends on interest every single day. They'll have added another $270,000 just in interest without paying a penny of actual principle. And there's this thing. The U.S. debt is now $36.7 trillion. That's like owing around $274,000 per U.S. household. We hit the debt ceiling back in January 2nd.

Treasury Secretary Bessent is now using emergency extraordinary measures. And no one tells you that. You're just scrolling while Congress acts like nothing's wrong. But you know what? This isn't new. Back in 1814, during the War of the War of the United States. 1812. We literally defaulted on interest payments. And guess what? After World War II, debt hit 116% of GDP. And how do we fix that? We inflated it away with nearly 4.2% inflation for over a decade.

Your grandparents lost big in saving. But the government won. And today, we're on track to do it again because the system is exactly designed this way. Here, let me show you how this system traps itself and why you're stuck paying for it. You see, right now, America's operating like a broke millionaire, rolling over billions in debt every day just to keep the lights on. And here's what they don't want you to realize. This isn't a budgeting problem. It's a debt trap built into the system. The total debt, 36.7 trillion. The daily interest, three billion and roll over due this year. 9.2 trillion, one third of the entire debt. I mean, imagine if your entire mortgage came due this year and you had to refinance all of it at triple the rate. That's what the U.S. is doing every single month.

They're replacing old cheap debt from the 2020 era, 1 to 2%, with today's 5 to 7% rates. But unlike your mortgage, they don't get to pick and choose. They're stuck rolling everything when it comes due, and it never ends. In 1835, Andrew Jackson paid off the entire national debt. The only time in U.S. history. The result? The panic of 1837. Banks crashed. Today's approach avoids that collapse by printing and inflating instead of paying it off. So, no balancing the budget like your household.

checkbook, it's, that's not a serious policy. That's political theater. The system runs on inflation, not frugality. Now, check out this jaw-dropping stat. Interest payments just surpassed Medicare spending. So, depending on the week, we may be paying more just to bondholders, including the Fed, than to seniors' health care. Yet, senior voters still think Congress is fighting for them. Warren Buffett nailed it. The U.S. will never default because we can print money. He's placing a bet on inflation. Then, shouldn't we? Meanwhile, Dave Ramsey's still preaching that all. debt is evil. But here's the problem. By refusing to distinguish between good debt and bad debt, he might be hurting the very people he's trying to help. Because while his audience avoids

all leverage out of fear, the people getting rich, they're the ones that are borrowing to buy assets that inflate in value, then paying it back with cheaper dollars. Ramsey's teaching you to bring a piggy bank to a game of monopoly. And in this system, playing safe means getting left behind. Because the irony here is, they scare you away from debt while the U.S. runs the world economy on it. And the government isn't just using debt to stay afloat. No, it's selling debt the whole world depends on. U.S. Treasuries aren't just America's credit card. They're the backbone of the global financial system. Around $27 trillion in overnight loan, called the repo market, are backed by treasuries. Another $9 trillion in international loans rely on them to function. Banks use treasuries like

pawn shop collateral. They trade them back and forth every night to keep cash moving. If those treasuries disappear? Liquidity dries up. Credit freezes. It's like draining the oil out of a running engine. So no, the government can't just pay off its debt. The world needs that debt to exist. Not because the U.S. is broke, but because the economy everywhere demands it. China and Japan hold massive treasury loads, about $2 trillion combined. And they've suggested they could dump them as a weapon. Mutual assured destruction? You bet. Their currencies would crash too. So it ain't happening. The Fed, meanwhile, owns about $4.2 trillion. China, around $756 billion now. So the entity, we fear, domestically, holds five times more than China. But politicians still talk scary about Beijing. In June,

2025, the U.S. collected $27 billion in tariffs, expected to hit $300 billion by year end. So why don't we use that to pay down the debt? Well, because that revenue drops into the general fund and just disappears into interest, entitlement program, and bureaucratic expansion. And perhaps rebate checks to the American people. That story is still unfolding. But here's the lowdown. The U.S. isn't avoiding default. The U.S. is defaulting silently via inflation.

You see, every year of unexpected 3% inflation eats up about 2.3% of GDP in debt. Over a decade, that wipes out trillions without anyone writing a check. You just watch prices go up. You feel poorer, but we stay quiet. Economists call this fiscal dominance. The debt becomes so big, the Fed can't raise rates to fight inflation. because that would bankrupt the Treasury. Money printing stops being monetary policy.

It becomes debt servicing. The bond market dictates policy now. Not the Fed. Think about what $3 billion a day in an interest could pay for. A day. Six brand new schools a day. 600 bridge repairs a day. College tuition for 50,000 families a day.

Instead, it just grows the debt machine. If you earn $70,000 a year, you're paying approximately $850 in taxes just in interest service. Not services. not infrastructure, just the debt machine. Yet, what are you doing? Saving in cash, like it's 1952. The rules they've already changed.

They changed a long time ago. So with this system, there are winners still. There's winners and there's losers. The big winners? The government, because they're the biggest borrower. Wall Street, they have all their fees rolling on debt, then asset owners. Inflation boosts asset prices.

And then foreign governments because of treasury leverage. The losers, the savers. Inflation erodes your cash. Retirees on fixed income. Wage earners. Wages lag inflation. First-time homebuyers, priced out by asset inflation. This system is a wealth transfer machine.

The same debt that makes you poorer is making the elite richer. So here are your options. You've got three of them. One, austerity slash spending, raise taxes, trigger a recession. Two, you default, so you cancel the debt, you crash the markets, and you lose reserve status. Or three, debasement. Inflate slowly. Pay and weaker dollars.

Act normal. And guess what we're doing? Yeah, option three. While everyday people are hoping their savings account or 401K beats inflation, They're rigging the game. So with all that said, maybe it's time to pivot. I mean, here's what I mean. If you want what someone else have, in this case, riches,

then do what they do and then the way that they do it, and you'll likely get what they got. At the very least, you're going to get something very similar. So this is how. Use good debt, not bad debt, lock in rates now, buy assets that rise with inflation. Like real estate, cash flow businesses, inflation-adjusted investments.

And stop trying to out-save a system designed to devalue your dollars. Seriously, If the government borrows to grow its power, maybe you should borrow to grow your control. Ever hear someone say, I have too much money? Me neither. Let's get you some more. Back to the show. The U.S. Treasury just pulled off something massive, not a headline, a magic trick.

And whether you realize it or not, it's already hitting your wallet, your retirement. and everything you thought you knew about safe investments. Here's the thing. While everyone's watching the Fed raise rates to fight inflation, the Treasury's been secretly undoing at all. They'll never admit it, but if you follow the money, the truth is impossible to risk.

Let me break this down real simple. You know how the government borrows money? They sell bonds. Basically, IOUs. Usually they sell a mix, some that pay back in 30 days, some in 10 years, some in 30 years. But here's what changed. Since 2003, they've been borrowing almost only short-term,

like pay me back in a few months short. Think about it like this. Instead of getting a 30-year mortgage for your house, you're using credit cards. Why does this matter to you? Because when the government floods the market with short-term debt, it's basically printing money without actually printing it. Smart economists calculated this trick is worth about $800 billion in fake stimulus. That's like the Fed cutting rates by 1%, except they didn't. They were raising them. So while Powell's at the podium talking tough about fighting inflation, the Treasury's in the back room doing the exact opposite.

No wonder your groceries still cost a fortune. No wonder the stock market won't crash, like it should. And no wonder your savings account still pays peanuts while everything. else gets more expensive. But here's where it gets really wild. I'll tell you about Robin. She's 62, retired school principal from Oregon. Did everything right. Her advisor put her in the safe portfolio, you know, the one for people close to retirement. 40% stocks, 60% bonds. Bonds are supposed to be boring, safe, the place you park money when you can't afford to lose it. By late 2023, Robin had lost $190,000, not from some tech stock gambling, from bonds.

When she asked her advisor what happened, he just shrugged, interest rates, he said. But here's what he didn't tell her. Those safe bonds got crushed because the Treasury and Fed are playing tug-of-war with the entire system. And people like Robin, they're the rope. Now here's the scary part. Right now, $8 trillion in government debt needs to be paid. back in the next 12 months. That's trillion with a T. And to put that into perspective, that's more than the entire economy of Germany. And remember, they're doing this with short-term loans.

Credit cards, not mortgages. Every month, they need to find new lenders again and again and again. What happens when the credit cards come due and nobody wants to lend? Trump's Treasury pick, Scott Besson, already said he won't sell long-term bonds at these high rates. So they keep roll on the dice with short-term debt. It's like refinancing your house every three months and hoping rates don't spike. Except it's not a house. It's the entire U.S. government.

But wait, it gets even crazier. Because once you flood the system with all this short-term debt, you need buyers. And what the Treasury did next? Well, let's just say, if you or I tried it, we'd be in jail. They're literally buying back

their own bonds to manipulate prices. And foreign governments, they're in on it. I'll show you exactly how this works in a minute, but first, you need to understand why this matters to your money right now. Remember 2008, the government bailed out banks? Well, they're doing it again. It's just sneakier. You see, in May, 2024, just last year, the Treasury started something they hadn't done

in over a decade, buying back their own bonds, up to $30 billion every few months. And here's the scam. They announce which bonds. bonds they're buying. Then, surprise, foreign central banks start buying those exact same bonds right before. It's like insider trading, but legal. This creates fake demand, pushes prices up, makes it look like everything's fine. During market stress, they crank it up to $10 billion a week. They're literally printing money to buy back their own debt to make their debt look more valuable. If a company did this with their stock, the SEC would shut them down. When the Treasury does it,

they call it market operations. But here's the part that should really make you angry. The Fed and Treasury are supposed to be independent, like Church and State. Instead, they're coordinating behind closed doors. The Fed times its moves around Treasury's schedule. When Treasury needs help, the Fed magically provides liquidity. When Treasury pulls money out, markets tank. Your mortgage rate, your 401k, your savings, it's all getting jerked around by two government agencies playing games. Here, in May, 2004, the Fed, coincidentally, slowed its balance sheet reduction right when Treasury needed help. That injected $270 billion into markets. No vote, no announcement, just done. Look, they keep saying the U.S. won't default. And they're right. We won't because defaulting is loud. It's obvious. It makes

headlines. Instead, they're doing something quieter. They're destroying the value of every dollar you save. When the Fed prints and the Treasury manipulates, your money doesn't disappear overnight. It just buys less and less and less. That's what Robin discovered. That's what millions are about to learn. The game isn't rigged against you because they want you to lose. It's rigged because they need you to lose slowly enough that you don't notice. But now you know. Hope is not a financial strategy. Let's get back to work.

We've been renting our homes from the government for way too long. We've been evicting people out of their houses because they can't keep up with the tax increases. And now you've got this extreme measure. While 135 people died in the Texas floods, including 27 minors at a summer camp, counties are using events like this to collect more from taxpayers. Harris County, $268 million recently. County leader has passed a new budget and a new property tax hike.

I'm in favor of motion carries 4 to 1. That is the moment commissioner is approved an 8% property tax hike. The county usually has to put any tax hikes above 3.5% before voters. But state law allows an exception if there's been a declared disaster. I didn't believe it myself, but it's legal, it's quiet, and your county might be next. I'll show you exactly how it works. Property taxes are expense to people, and the young people that were talking about it, any slight raise of taxes means housing costs is more.

This is verified documented theft, and most Texans have no idea it's happening. We about to get priced out. Being a homeowner and a business has always been the American dream, but these taxes make it to the American nightmare. The sticking this kind of tax increase on top of people is unconscionable, and somebody ought to pay the price for doing this. You'll find all of the receipts linked below in the pinned comment, because right now, while families are still grieving,

and communities like Camp Mystic are mourning, unimaginable losses, local governments are using those very disasters to jack up your problems, property taxes without your vote. And they're doing it legally thanks to a loophole in Texas tax code 26.042 that lets counties bypass the normal 3.5% tax cap and spike it up to 8% just by declaring a disaster. Sound extreme? Well, let me show you how this scam already pulled $268 million out of Harris County last year and how it's setting up Kerr County and probably yours to do the same. Back on July 4th, 2025, floods tore through the Texas Hill country, killing over 130 people. Accuether and multiple outlets put economic losses at $18 to $22 billion.

In Kerr County alone, over $240 million in property value vanished. Tragic? Absolutely. But within days of the disaster declaration, county officials began talking tax increases. Last night, City Council voted to allow the tax assessor, to calculate how much a hike could help in recovering from the flood. County commissioners approved the same resolution last week. They hadn't raised rates in five years, but suddenly, disaster relief opened the door to an 8% hike. And get this, they don't need voter approval.

Because buried in the tax code is a disaster clause that lets them override the cap and hit your home. Hard. And this isn't just Kerr County. Harris County used this exact same loophole after Hurricane Barrel in 2004 just last year to quietly raise taxes and pull in $268 million more without holding a public vote. Commissioner Tom Ramsey even admitted we funded everything we needed, but now they want $268 million more? This isn't a revenue issue.

It's a spending problem. And I know what some people are thinking, hey, Matt, it's just a one-time disaster hike. It'll go back down. Except it doesn't. It resets the floor. And they never lower it, ever. And while this is happening, politicians in Austin

are celebrating the biggest property tax relief package in state history. 25% a quarter of the Texas state budget is using money to return to you through tax cuts. No state in the history of America has devoted such a large percentage of their budget to tax relief in the United States of America. You've probably heard about it. They're proposing to raise the homestead exemption to $140,000 or $200,000 if you're over 65, pending voter approval this November. Sounds good, right? Except it's not real relief because while the state cuts rates, local governments raise them.

So you end up saving $400 on one side and paying $600 more on the other. It's a shell game. Here are the numbers. They raised the county rate by 10%. Flood control rate, which was approved by voters. It went up 58%, but that's a small number. The port went up by 7% and the hospital district went up by 14%. When you add up those four entities, the tax rate went up by 14%.

Now, that's just one number. You've then got to take how much your house went up, average house went up in Harris County last year by 4%. You multiply 14 times four times the value, and that's what you, end up, it's called compounding. So most people will see about a 15% increase in their tax. Under a recent law, counties must verify your homestead exemption at least once every five years, which means many could lose theirs if they don't respond. In this year, we got our tax bill, and we went from like a $6,000 or $7,000 bill when we first move in to over $12,000. And the first thing I look on the statement, the exemptions was blank.

So you should have that homestead exemption. That's what happened with homeowner, Mike Bryson. Trying to do some research, it disappeared somehow, and the county said you have to reapply. Of course, you have to pay the bill as is, and then it could take three to four months to get approved for your homestead exemption. That's not an accident. That's a system designed to claw back anything that looks like a benefit. And the deeper you go, the uglier it gets. There are private tax protest firms exploiting desperate homeowners.

There's a sovereign wealth fund that guarantees school district bonds backed by property tax revenue. And there's mounting evidence that appraisal values in places like Travis County are being inflated, even during market downturns to keep revenue flowing. Travis Cad processed over 205,000 tax protests this year alone. My taxes went up through the rue. one by one. Do you know you're actually taxing people out of their houses? That's not a bug.

That's a system breaking under pressure. This isn't about one county or one storm. It's a ratchet mechanism. Disaster hits. Taxes go up. New budget baseline. Next disaster equals another 8% then repeat. The relief, it's temporary.

The pain is permanent. And in a few years, the middle class gets priced out while politicians get to say, hey, but we cut your taxes. This isn't new either. Back in the 1970s, California's Prop 13 was born out of this exact scenario. Taxes kept rising. People were getting priced out of their homes. A full-blown tax revolt erupted, and they rewrote the Constitution to cap property taxes permanently.

Now, Texas isn't there yet, but this is exactly how it starts. So, what can you do? Start with this. First, check if your county has declared a disaster in the past. 24 months. Two, watch your appraisal notices closely, especially if your home value seems inflated. Three, challenge anything that doesn't look right. And do it before the protest window closes.

And four, look into HB30, a bill that will close this disaster loophole starting January 1st, 2026. Until then, counties are racing to exploit it. And by the way, if you own a $400,000 home in Harris County, your tax bill, like went up by about $160, not for flood recovery, but to plug political budget gaps. Now, if you're someone who's waking up to the fact that this system isn't built for you and you want a way out, it's all about the final frontier where the average person has a legitimate shot at freeing themselves from the rat race and putting themselves on the right side of this rigged system,

because it is indeed rigged, but there's still a way to win it. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace,

blessings, and success to you, a met Terrio. Living the dream. Yeah, yeah, we got the cash flow. We didn't know, home for it. We got the cash flow. Okay, only 10 more presents to wrap. You're almost at the finish line. But first,

There, the last one. Enjoy a Coca-Cola for a pause that refreshes. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.