Joe Garza explores the benefits of the “Texas Miracle” – the way in which Texas businesses have created jobs and attracted migrants from all over the United States. From 2001 to 2011, when job creation across the country was faltering or even at a net negative, Texas saw an increase of over 730,000 private sector jobs. Various tax breaks and subsidies have attracted a plethora of business to relocate to Texas, as businesses both large and small have much to gain from Texas’ policies. For instance, a new law concerning a reformed margins tax that was initiated by the Texas Tax Reform Commission has granted over 40,000 small businesses exemption from the franchise tax. Texas’ business-friendly policies, low government spending, and favorable business regulations have proven to be some of the main contributors to the state’s consistently high quality of life for all its residents.

1. When it Comes to
Job Creation,
Texas is in a
League of Its Own
Tax Trends Weekly

2. Governor Perry is fond of talking about
the “Texas Miracle.”
 The state’s businesses have created jobs
and attracted migrants from all over the
country in the last two decades.
 From 2001 to 2011, when job creation in
other states was anemic or even a net
negative, Texas saw an increase of more
than 730,000 private sector jobs.

3. The data in Texas’ favor is impressive.
 The average wage for these newly created jobs was solidly in the middle of rankings
compared to other states.
 This rebuts the claim that Texas was simply creating low-wage “McJobs” for low-skill
workers.
 While Governor Perry has faced criticism for attracting businesses to Texas with various tax
breaks and subsidies- what critics charge is corporate welfare at the expense of the poor-
there is no doubt that businesses have taken these tax breaks into account when
relocating to Texas.

4. How Texas Got Ahead
 Perry’s primary initiative for attracting out of state business is the Texas Enterprise Fund,
a grant of over $410 million.
 Awards from the fund are offered to businesses conducting searches for a new location that
have attracted the interest of other states.
 Eligible businesses must be able to guarantee the creation of high paying jobs and
community involvement. In the past, awards have ranged from $194,000 to $50 million.

5. Far Reaching Benefits
 Though large businesses have a lot to gain from Texas’ policies, small businesses
have it better there too.
 The Texas Tax Reform Commission initiated a reformed margins tax that
significantly lowers the franchise tax rate.
 Under the new law, over 40,000 small businesses have been granted an
exemption from the franchise tax.

6. “How Money Walks”
 In his book How Money Walks, Travis H. Brown examines the way that Americans
migrate to states with low taxes and favorable business climates.
 Emphasizing Texas’s success at attracting job-seekers, Brown used IRS data to
calculate that the state gained roughly $25 billion in adjusted gross income from 1992
to 2010.
 That shouldn’t come as a shock when you look at how much individuals have to gain
from moving to Texas.
 A person in the highest tax-bracket who moves from California to Texas and
maintains the same salary effectively gets a pay raise by avoiding California’s
onerous income taxes (13.3 percent in the highest tax bracket).

7. A Higher Quality of Life
 Texas’ business-friendly policies have allowed the state’s quality of life to remain high.
 The state’s economy has had measurable benefits for more than just top executives.
 Austin, Dallas, and Houston repeatedly top lists of cities with notable job growth, low cost of living
and booming real estate market.
 Dallas has been hailed by Bloomberg as one of the best cities for new college grads, and Austin
gets major points for its thriving startup culture.
 While critics may rail against the Texas philosophy of low government spending and
favorable business regulations, an honest critic will acknowledge that this philosophy has
had important benefits for the state.

8. Important Factors to Consider
When Choosing a Financial Advisor
The Approach
A reputed company evaluates every aspect of your financial situation before suggesting a
solution. An advisor should spend adequate time with so that he or she can gain true insight
into your finances.
Fees and Qualifications
Make sure to find out how much the company charges and how much monthly payments will
be. It is equally important to find out what type of qualifications the advisors posess.
Will your Information be kept Private?
This is another important question to ask. A reputable company will keep your information
totally private and will make all of its decisions for the clients’ benefit.