Sunday, May 17, 2009

Texas has the lowest state tax burden in the nation - and is experiencing job growth

from Don Surber
May 17, 2009

Texas is the new California

Fort Worth Star-Telegram: People are moving to Texas for jobs, which are on the rise. The reason for the jobs — lower taxes — isn’t mentioned until the 58th paragraph.

And then, all it said was, “Texas’ business climate of low taxes and a low regulatory burden draws companies and workers, Saving said.” He is Jason Saving, a senior economist at the Federal Reserve Bank of Dallas.

Texas just happens to be 50th in taxes per capita. That’s right, it has the lowest state tax burden in the nation.

Paragraph 15: “According to the latest Census figures released in March, Dallas-Fort Worth-Arlington added 146,500 people between July 2007 and July 2008 — more than any metropolitan area in the nation. Houston-Sugar Land-Baytown added 130,000 for the No. 2 spot, and Texas had 10 of the top 25 counties with the biggest numerical gains.”

Also from the article, Jim Gaines, a research economist at Texas A&M University: “Why do people move? Generally, jobs. “Right now, Texas will probably be the only state in the Union that reports more jobs than the year before — by a total of close to 154,000 [in 2008]. Those numbers will be reduced this year. But if you are an entrepreneur or want to start a business, this is the best place to do it because of the pro-business attitude of the state.”

So basically its unemployment figure is rising not because people are losing their jobs, but the net gain in jobs is not keeping pace with the net gain in people.


I just wish the story had explored the tax angle better. It is not the only factor, true. But it is one that might explain what is behind the growth in jobs and hence in population.
Click to read the article and the comments

No comments:

Post a Comment