AUSTIN – Yesterday, the US Bureau of Economic Analysis released the “State Personal Income: Third Quarter” report, revealing that the average personal income of Americans increased by 1.05 percent to $14.18 trillion in the third quarter of 2013, which is slightly lower than the 1.17 percent rate in the second quarter.
“Texas saw a 1.34 percent increase in personal income, continuing the positive trend for personal income growth that we’ve seen in the state for 15 of the last 16 quarters. Compounded, Texas has seen an annual growth rate of 5.2 percent, which is almost one and a half times that of California’s,” said Vance Ginn, Ph.D., a policy analyst in the Center for Fiscal Policy. “Texas’ job climate continues to be among the best in the country, which is good news for Texans and those looking to move to Texas.”
“California may have a higher total personal income than Texas-$1.82 trillion of personal income to Texas’ $1.16 trillion-for now,” said Talmadge Heflin, Director of the Center for Fiscal Policy at the Texas Public Policy Foundation, “But Texas’ pro-growth model means the gap between the two states will continue to narrow. Over the course of the last 13 years, Texans’ share of personal income has increased 17%; Californians’ share, on the other hand, has actually declined.”
He continued: “The report is a clear indication that big government policies limit growth opportunities across the board: what could be more universally felt than the stagnation of personal income? But the flip side is perhaps even more important: the report also shows that the Texas model of freedom and limited government is a real enabler of growth and prosperity.”
The Honorable Talmadge Heflin is Director of the Center for Fiscal Policy at the Texas Public Policy Foundation. Heflin served 11 terms in the Texas House of Representatives and chaired the House Appropriations Committee in 2003, leading the Texas Legislature’s successful efforts to close a $10 billion budget deficit without a tax increase.
Vance Ginn, Ph.D., is a Policy Analyst in the Center for Fiscal Policy at the Texas Public Policy Foundation. The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin.
The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin.
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