Calif. can’t compete with Texas, study says

When it comes to taxes, regulations and government spending, California is losing ground to Texas, according to a new study by the Texas Public Policy Foundation. The Competitive States 2010: Texas vs. California report is a follow-up to a similar one in 2008, which also showed the Golden State lagging the Lone Star State. Here’s the snapshot of the 35-page report (click on chart for a larger view):

Source: Texas Public Policy Foundation

Texas’ competitive advantage over California, according to the study, is lower taxes, lower government spending and less regulation.

Sally C. Pipes, president and CEO of San Francisco-based Pacific Research Institute, said, “If Californians still have trouble understanding why so many of our former neighbors have gone to Texas, this scorecard spells it out in painful detail.”

California does outperform Texas on a few measures:

  • State and local property tax burden per capita: California $32.89, Texas $36.50
  • Sales tax per $1,000 of personal income: California $25.62, Texas $29.47

But on most measures that the study uses, Texas comes out ahead:

Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.

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