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California VS Texas: The Verdict Is In – Power Line

November 1, 2009

texas-with-texas-flagNovember 1, 2009 Posted by John at 8:32 PM

CALIFORNIA VS. TEXAS: THE VERDICT IS IN 

Texas, increasingly, is the economic and intellectual leader of the U.S. During the last 18 months before the current recession took hold, while the country as a whole was still creating jobs, more than half of those jobs were created in a single state: Texas.

Texas has usurped the leadership position that, decades ago, belonged to California. Today California is in decline, likely irreversibly so. William Voegeli draws the sad but instructive comparison in the Los Angeles Times:

In America’s federal system, some states, such as California, offer residents a “package deal” that bundles numerous and ambitious public benefits with the high taxes needed to pay for them. Other states, such as Texas, offer packages combining modest benefits and low taxes. These alternatives, of course, define the basic argument between liberals and conservatives over what it means to get the size and scope of government right. …

california-state-flag-757876California and Texas are not perfect representatives of the alternative deals, but they come close. Overall, the Census Bureau’s latest data show that state and local government expenditures for all purposes in 2005-06 were 46.8% higher in California than in Texas: $10,070 per person compared with $6,858. …

Confronted with a stark choice between government dominance and freedom, Americans are voting with their feet:

One way to assess how Americans feel about the different tax and benefit packages the states offer is by examining internal U.S. migration patterns. Between April 1, 2000, and June 30, 2007, an average of 3,247 more people moved out of California than into it every week, according to the Census Bureau. Over the same period, Texas had a net weekly population increase of 1,544 as a result of people moving in from other states. During these years, more generally, 16 of the 17 states with the lowest tax levels had positive “net internal migration,” in the Census Bureau’s language, while 14 of the 17 states with the highest taxes had negative net internal migration.

via Power Line.

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2 Comments
  1. Mark Whitaker permalink
    November 2, 2009 6:11 AM

    Your article highlights the difference between states that are friendly to business and those that are not. Texas is, if not number one, one of the friendliest states toward business. Look at Ohio, Michigan, California, New York, Massachusetts, unemployment vs Texas. Analyze these states taxes rates on businesses and citizens that in its self demonstrates why they are moving out. Add one more thing education especially if you are looking at California, New York and Michigan.

  2. November 29, 2009 7:16 PM

    I don’t understand Texa’s frustations to beat California in business or economic power. They will never achieve this, Ever!!! What has Texas invented??nothing. California is a innovative State with an inventive mindset something not found in Texas. Also the comment of California in decline?? They must have missed the current Fiscal Reports California is turning out. While Texans remain jeleous of their Deep Blue Brother due to that they will never outperfomed what has been the backbone of America, without California the US would fold in less than a year, food prices would soar across the states as California would rise prices as it produces the most agriculture in any state “100% San Joaquin Valley Baby,”. Technology would be another world to the rest of the states including Texas and New York that depends much in Californians for IT support and chips. Californians dont talk about Texas much as Texans talk about California heck the world is more interested in California than Ya’ll down there.

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