In a move that has deepened the intense economic rivalry between the nation's two largest economies - Texas and California - the office of Texas Governor Rick Perry recently released hundreds of letters to California businesses, imploring them to move their operations to Texas, according to the Orange County Register.
As the Lone Star State can certainly be choosy with its selection of favorable data, the most recent ranking of the most entrepreneurship-friendly states by the Small Business & Entrepreneurship Council - which places Texas at No. 3 and California at No. 48 - is an effective one.
There is also the Tax Foundation's report that shows the Lone Star State to be the top destination for residents leaving California to live or incorporate in Texas
"As the State of California continues to support legislation and initiatives that cause undue burden and taxation on companies doing business within the state, I invite you to consider your future in America's new land of opportunity: the State of Texas," the letter, which is signed by Governor Rick Perry, reads
Despite, the two states' enormously different economic philosophies, there are a number of other issues that the governor's letter neglects - namely that California remains far and above a more economically productive state, with the world's seventh largest GDP at approximately $1.8 trillion. What's more, Texas is currently struggling to tackle a $21 billion budget shortfall that is likely to inhibit the state's investment in infrastructure and education and perhaps even small business itself.
Tags : ca, formation, small business management, taxes, tx
Posted: Dec 14th, 2010