Texas, the second largest US state next to California (in terms of GDP), has benefited from low taxes and low government spending (measure of government intervention) that has translated to economic resiliency even during the recent recession.
This from analyst Martin Spring: (bold emphasis mine)
``Interesting to see how successful the US state of Texas has been through policies such as cutting public spending, cutting taxes and implementing tort reform (limiting the damages courts may award in product, medical and similar liability cases).
``Texas has no state taxes on income or capital gains – yet it continues to run a budget surplus despite the recession.
``Between 2000 and 2007, more than half-a-million people moved into Texas, compared to the 1.2 million who exited notoriously high-taxed California.
``Last year Texas created more jobs than all the other 49 states combined – 70 per cent of net new jobs of the entire nation."
This from Bruce Kellison of IC² Institute (University of Texas)
``The real story behind the jump in GNP, then, might not be the dependency of consumers on government programs like “Cash for Clunkers” and the first-time home buyers’ tax credit, but the resiliency of firms to remain innovative, nimble, and competitive in a still-globalized economy. Texas was among the last states to feel the effects of the current recession, and many economists believe it will lag in recovery. But exports might mean Texas will lead, not lag, coming out of the recession." (bold highlights mine)
Some research sites for Texas: Tax Foundation.org, Texas Policy.com, Nelson Rockefeller.org
This from analyst Martin Spring: (bold emphasis mine)
``Interesting to see how successful the US state of Texas has been through policies such as cutting public spending, cutting taxes and implementing tort reform (limiting the damages courts may award in product, medical and similar liability cases).
``Texas has no state taxes on income or capital gains – yet it continues to run a budget surplus despite the recession.
``Between 2000 and 2007, more than half-a-million people moved into Texas, compared to the 1.2 million who exited notoriously high-taxed California.
``Last year Texas created more jobs than all the other 49 states combined – 70 per cent of net new jobs of the entire nation."
This from Bruce Kellison of IC² Institute (University of Texas)
``The real story behind the jump in GNP, then, might not be the dependency of consumers on government programs like “Cash for Clunkers” and the first-time home buyers’ tax credit, but the resiliency of firms to remain innovative, nimble, and competitive in a still-globalized economy. Texas was among the last states to feel the effects of the current recession, and many economists believe it will lag in recovery. But exports might mean Texas will lead, not lag, coming out of the recession." (bold highlights mine)
Some research sites for Texas: Tax Foundation.org, Texas Policy.com, Nelson Rockefeller.org
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