Economic Growth – Texas vs. California

In The Wall Street Journal this week, there is an op-ed article that compares Texas and California in the area of economic growth.  The two States have different policies that reflect on their respective economic growth.  Let’s look at some numbers.

Did you know that 3 out of 5 of the nation’s fastest growing cities are in Texas?  Did you also know that nearly 50% (7 out of 15) of the nations fastest growing cities are also in Texas?  Why are these facts true?

There are at least three good reasons for the economic growth in Texas.  First, taxes are lower.  Second, the regulatory burden is lower.  Third, there’s an energy boom in Texas.

Texas follows pro-growth economic policies, policies that I have advocated and written about for years.  Let’s see some additional facts.

Toyota has announced that it is moving its U. S. headquarters from California to Texas.  Reasons that helped to make this decision?  Once again, lower taxes and fewer burdensome regulations.  Less expensive energy costs were another factor.

Just think Texas has NO State income taxes vs. California with 13.3% top marginal State income tax rate.  That’s a big difference to taxpayers.  Plus, the cost of electricity in California is up to 88% higher than Texas because of California’s renewable energy mandate.  If you drive in California, your gasoline costs up to 80 cents more per gallon.

All those factors stifle economic growth.  Any wonder why Texas is experiencing such good economic growth?

Here’s one last fact worth thinking about.  In the 30 year period, 1980-2010, Los Angeles added one million residents.  Despite this population growth, LA lost 165,000 jobs, a sorry record.

California and other States should look to Texas if they want to enhance their economic growth.

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