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Texas Shows That the Size of Government Matters


Posted by Patrick Gleason on Monday, March 12th, 2012, 4:55 PM PERMALINK


The Texas Public Policy Foundation recently updated a key chart from their 2010 paper, Texas vs. California: Economic Growth Prospects for the 21st Century.

TPPF Vice President of Research Bill Peacock on the chart’s importance:

The chart shows that Texas has much lower government spending as a percentage of the private economy than the U.S. or our largest competitor, California.

In other words, Texas generally imposes a lower spending burden on it citizens, which translates into lower taxes. But a low spending burden isn’t a constant in Texas. The chart also shows that Texas spending burden has increased at certain times. This is certainly the case in 2009, for which our new data shows a sharp uptick in Texas’ spending burden.

Peacock adds:

A state that keeps its taxes low and overregulation at bay is one that fosters economic development. On the other hand, a state that plows its cash into government spending is one whose businesses and citizens will soon be leaving for greener pastures. The state spending burden is perhaps the best measurement to gauge which one of these paths a state is traveling.

ATR encourages folks to visit www.TexasPolicy.com to see more of the great reports and helpful work that TPPF is putting out in the Lone Star State.

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