TX v. CA: Economic Policy Showdown

What’s happening? UT Austin and Stanford professors joined forces to see which state, TX or CA, had better economic policies.

Why is this important? Businesses and people are relocating from California to Texas. There’s got to be something to that, right?

How will this be important? The study says it’s not clear. Each side has its good points and runs through these, which are of personal preference:

• TX low taxes but low social program funding (foster care, mental health, health care network, etc…)
• CA remains king for venture capital funders
• TX has higher property taxes per capita
• CA has higher income taxes per capita (TX has no state income tax)
• CA spends more on students in public eduction
• TX graduation rates are higher than California’s
• TX has seen a population boom
• CA has surging per capita income and GDP

Stanford | A tale of two states: Contrasting economic policy in California and Texas