As Texans, we all know that people continue to move here. Just look around when driving to the grocery store or your favorite restaurant. In rural and urban areas, you not only see more people, but license tags from other states.

A recent report by the Federal Reserve Bank of Dallas highlights the large sum of international and domestic migrants choosing Texas over other states. In fact, Texas has topped all other states in domestic migration since 2006 (see figure below). 


Almost a quarter of people moving to Texas from other states are from none other than the high tax, high spend, and highly regulated Golden State, California (see figure below). 


While some (wrongly) argue that people move to Texas because of the weather, a more accurate explanation is that the fundamentals of a robust economy supporting ample job creation are driven by conservative fiscal policies. This includes a combination of no personal income taxes, low tax burden overall, and sensible regulation—otherwise known as the Texas model.

Dan Mitchell, who is a Senior Fellow and fiscal expert at the CATO Institute, notes in a recent post over at his blog “International Liberty” the following reasons why people choose to move to Texas for opportunity:

    • “Texas is the 4th best state in the Tax Foundation’s ranking of state and local tax burdens.”
    • “Texas is the least oppressive state in the Texas Public Policy Foundation’s Soft Tyranny Index.”
    • “Texas is ranked 20th in a study of the overall fiscal condition of the 50 states.”
    • “Texas is in 4th place in a combined ranking of economic freedom in U.S. states and Canadian provinces.”
    • “Texas is ranked 11th in the Tax Foundation’s State Business Tax Climate Index.”
    • “Texas is in 14th place in the Mercatus ranking of overall freedom for the 50 states (and in 10th place for fiscal freedom).”


When searching for a place for the opportunity to improve the livelihood of your family, better your career, and fulfill your dreams, there are few places better than Texas. As this anecdotal evidence shows, a contributing factor that other states should consider for the betterment of their citizens is to provide an environment that supports entrepreneurial activity by limiting the size and scope of government.