Weathering the national recession, Texas is leading the country in job creation. According to last month’s unemployment numbers, the four states with the highest job losses were California (-63,500), New York (-37,600), Massachusetts (-20,900) and New Jersey (-20,200). On the other hand, Texas gained 4,000 jobs. Texas Governor Rick Perry joined Varney & Co. this morning to discuss his state’s economic success.
“States ought to be competing against each other,” said Gov. Perry. “I go into California on a regular basis to share the great story about low taxes, a regulatory climate that’s fair and predictable, a legal system that doesn’t allow for over suing and a skilled work force. Come to Texas. It’s a place where you can keep more of what you work for and we’re not going to over-burden you with litigation and regulation.”
Over the past year, Texas has led the nation with the addition of nearly 153,000 jobs. Recent statistics have some believing that Texas is the new California for business.
“We’ve had a thousand plus people a day move into the state of Texas over most of the decade of the 2000s,” said Gov. Perry. “Since 2005, four out of five private sector jobs, new jobs created in America, were created in Texas.”
More and more companies are leaving states like California for Texas. One of the biggest reasons is that Texas does not have an income tax, giving firms approximately a 10% cost advantage over other states.
“We’ve had men and women in the legislature who were courageous to say no to new spending and new programs [in order to] keep our taxes and our budget within reason,” said Gov. Perry. “That is a story that really resonates in a place like California where they overtax, over-regulate, and [companies are] looking for some relief.”
With an economy that’s still struggling, it looks like more states should take Texas’ approach to job creation and competition.