Gov. Perry Urges Continued Fiscal Restraint in Upcoming Legislative Session
Gov. Rick Perry today reiterated the need for continued fiscal restraint, budget transparency and maintaining low taxes in the upcoming legislative session to sustain Texas' economic strength at the annual meeting of the Texas Taxpayers and Research Association.
"We have years of empirical evidence to show that keeping taxes low not only creates prosperity, jobs and investment, but it strengthens our state for the tough times," Gov. Perry said. "Every dollar the government takes means less money for employers and families, and I hope the legislature will allow Texans to keep their hard earned money so they can continue fueling our state's economic engine."
Texas' policies of limited growth in spending, low taxes and a reasonable regulatory environment have strengthened the state's economy, and prepared it to handle the national economy's current instability. The governor cited a study released in August by economist Arthur Laffer comparing Texas and California across six broad categories in which the states compete, and determined that Texas' economic environment is far more competitive than California's in five of the categories, and equal to California's in the sixth.
Texas continues to be a leader in job creation, generating nearly half of all jobs created in the nation from August 2007 to August 2008. The state's unemployment rate is a full percentage point below the national average. Texas also remains home to more Fortune 500 headquarters than any other state in the nation.
The Financial Times recently ranked Texas as the state best prepared to weather the national economic and financial slowdown. States' positions were based on a ranking of four separate economic indicators: employment growth rate, state product growth rate, personal income growth rate and home foreclosure rate.
TTARA is a non-profit, non-partisan organization that supports fiscally responsible and efficient revenue and expenditure programs for the state of Texas. TTARA and the TTARA Research Foundation provide access to the most current information available on fiscal and other public policies in Texas.