Wednesday, March 19, 2014

The Battle of Two State Economies: California vs Texas


On Wednesday, March 19, 2014, burntorangereport.com published a blog titled "A Tale of Two States: California and Texas" written by Joe Deshotel. In his blog post, Mr. Deshotel gives his opinion about how the public compares the two states of California and Texas. He believes that there are some misconceptions about the two states' economies and expresses how many people somewhat put Texas on a pedestal of great economic prosperity. Mr. Deshotel brings an interesting topic to light that many or most of the general public is clueless about. One of the morals that I get from his article is that the Texas State Government is only interested in making Rich Texans richer and the middle and poor classes even poorer than they are now. I will have to agreed with Mr. Deshotel's opinion that we, citizens of Texas, need to wake up and realize the truth behind Texas' so-called "Economic Boom" and we need to create a better economic system that will insure better standards of living for future success in the state of Texas.

Mr. Deshotel backs his opinion from a recent post by motherjones.com who quotes from the Washington Monthly in an article titled "Texas Turns Out to be Not so Miraculous After All." Mr. Deshotel iterates how that even though California has a high unemployment rate, Texas' middle and poor classes are paying higher taxes. From the same article he also mentions that the tax rate for the middle and poor classes pay nearly 4 times more than the upper class citizens of Texas. Deshotel continues to state facts about how Texas Governor Rick Perry has been "poaching jobs" from California by creating state incentives, such as lower taxes, for big name companies to move to Texas. Two of these state incentives are called the "Texas Enterprise Fund and Emerging Technology Fund" which has gotten many companies from California to relocate to progressive major cities like Austin, Dallas, Houston and San Antonio. This is one of the reasons so many people believe that is experiencing an economic boom.

It's hard to say what the right steps are in making Texas’ economy fair across the board for all residents. Questions like "should we implement a state income tax?" or "should we raise the taxes of the upper class?" come into mind. Some might say "let just scrap the entire thing and start fresh... lets copy *insert a state's name* economic style." I think it's really a matter of informing the Texas citizens the issues of the economy and encouraging them to vote for leaders who will be proactive in the betterment of Texas. Who knows if Texans will ever "wake up" and realize how we live in a state that only provides high taxes and low services.