Behind the Money
Is business better in Texas?
Aug 21, 2024
Myles McCormick, the Financial Times' Houston correspondent, dives into why numerous companies have migrated to Texas, drawn by low taxes and regulatory freedom. He discusses the impact of this influx, spotlighting giants like Tesla and HP. However, Myles warns of rising costs and infrastructure challenges that threaten this allure. The conversation also touches on how Texas’s conservative politics clash with corporate interests, raising questions about the long-term sustainability of its business-friendly image.
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Quick takeaways
- Texas attracts businesses with low taxes and fewer regulations, but rising living costs and infrastructure issues could threaten its long-term appeal.
- The state's increasing political polarization and strict legislative measures pose challenges for companies balancing economic freedom with social responsibility.
Deep dives
The Appeal of Texas for Businesses
Texas attracts businesses primarily due to its low taxes, fewer regulations, and relatively lower costs of living compared to states like California and New York. The lack of a corporate tax and state income tax allows companies to enjoy greater profits and employees to retain more of their earnings. Moreover, Texas is known for its lenient construction and environmental permitting processes, which facilitate quicker project launches. These factors, combined with the abundance of cheap land and low energy costs, have made Texas an appealing destination for over 300 companies that have relocated their headquarters in the past decade.
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