Dubbed the tech epicenter of Texas, “Silicon Hills” and “Silicon Prairie” in Austin and Dallas have become top destinations for major companies fleeing high-tax states, such as New York and California, for a cheaper alternative.
Republican Texas Gov. Greg Abbott is working to convince more financial and tech firms that are concerned about high taxes to go south. During an interview on FOX Business’ “After The Bell,” the governor said creating welcoming business environment is the key to attracting companies to the Lone Star State.
“Our regulations are very hospitable to businesses. There’s a reason why Texas has been No. 1 in the nation for businesses, and why we are now No. 1 in the nation for new job growth,” Abbott said. “And that’s because we treat businesses as though they are partners with us.”
Besides low taxes and government incentives, there is another reason top companies such as Apple, Google, Oracle and Pimco, which announced it’s opening an artificial intelligence unit in Austin, are attracted to Texas.
“That is because of the high-quality workforce that the state of Texas provides,” Abbott added.
As Amazon withdraws its New York City second headquarters plan, Texas boasts a number of new deals.
“We have large numbers of talent. Very interestingly, I think it was the same week Amazon made its announcement, we made an announcement where Apple was creating a massive headquarters in Austin, Texas, where they will be hiring 15,000 people to work, but we are making announcements like that almost on a monthly basis,” the Texas governor told FOX Business’ Connell McShane.
Additionally, Oracle just opened a 27-acre campus a few months ago, and Google recently announced it's building a 35-story tower in downtown Austin.
Although New York City offered Amazon $3 billion in tax breaks and incentives, Texas seems to be cutting good deals to woo businesses.
“We don’t need to offer as much because of the other benefits we have. Basically, we are paying for moving expenses,” Abbott said.
According to the Wall Street Journal, low-tax states such as Texas, Florida and Washington have experienced rapid GDP growth and a boost in population. Arizona, Florida, Colorado, Nevada, Texas, Utah and Washington, ranked among the eight states with the fastest job growth this past year, according to the Bureau of Labor Statistics.