The Facts
- Texas’ state and local tax burden ranked 45th nationally in fiscal 2009, according to the Tax Foundation. This compared favorably to other large states like New York (2nd), California (6th), Illinois (13th), and Florida (31st).
- In 2011, Texas’ economy added more than 200,000 jobs returning the state’s labor market to pre-recession levels.
- Texas’ unemployment rate is a full percentage point lower than the national average. Moreover, the state’s unemployment has been at or below the national average for over five years.
- Texas’ real gross domestic product grew by 2.4% in 2011, while the nation’s GDP grew by just 1.6%.
Recommendations
- Texas should not deviate from the Texas Model: low spending and taxes, a predictable, low level of regulation with strong property rights protection, a sound civil justice system, and minimal dependence on/interference from the federal government.
- Balance the state’s 2014-15 budget with available revenue, without raising taxes and fees or creating new revenue streams, while safeguarding the Economic Stabilization Fund.
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