by Rudy Takala
A report released last week assessing state business climates placed Texas at the top nationally, giving the state a grade of A+.
The study, conducted by the Kauffman Foundation and Thumbtack and reported on in The Economist, examined state business climates by looking at a combination of tax rates, regulatory environment and licensure requirements for low-income occupations. Texas was just one of two states, including Virginia received the top grade of A+, indicating the best climate nationally for small business owners. Three other states – Nevada, Utah, and Idaho – received A+ grades for their tax environment.
The report follows news that Texas added nearly 400,000 jobs over the past 12 months, bringing the state’s unemployment rate down to 5.1 percent. According to the Texas Workforce Commission, job growth in Texas is at its best in 17 years. Texas has definitely become a model of free-market solutions.
AFP-Texas State Director, Mike Hasson, issued a statement in response to the study, saying,
“The study conducted by the Kauffman Foundation and Thumbtack confirms what Texans already know – that there is no better place in the country to open or run a small business than in Texas. At a time when the Federal Government continues to burden small business owners with more forms, paperwork, and regulatory costs, Texas stands out for its prudent focus on streamlining regulatory processes, fostering a safe and predictable playing field, and reducing the barriers to entry into both industry and the workforce. We look forward to expanding this climate of free enterprise in the coming legislative session.”
The enormous growth fostered by Texas’ free economic climate stands in stark contrast to states with burdensome economic regulatory and tax environments. Illinois, which received an “F” on the report, saw an unemployment rate of 7.5 percent in May. California, which also received an F, had an unemployment rate of 7.6 percent. They could stand to learn a thing or two from the “Lone Star State” about how economic liberty can bring prosperity to all its citizens.
Americans for Prosperity will be taking its “Defending the American Dream” summit to Dallas, Texas from August 29-30. The summit will focus on the prosperity that economic freedom has brought to the state.