5 Reasons Texas is Better at Business
By Darryl W Lyons
- Texas will not tolerate high taxes
The franchise tax, the inventory tax, and the property tax are all on the chopping block of Lieutenant Governor, Dan Patrick. He makes a case that the property tax is “valuation without representation.” Every time property values go up, taxes go up. This unnecessary tax increase doesn’t settle well with Texas leadership. If you want to get Texans really upset, ask them about the franchise tax. The franchise tax is not a tax on take home pay. Rather, it is a tax on gross receipts. Some call for reform, most call for repeal of the franchise tax.
- Texas wants small business owners to have skilled workers
There was a loud applause when one speaker at the conference said “not everyone needs a B.S. in B.S.” The point was that Texas leadership is focused on getting many hard working Texans the technical skills to bring value to the marketplace. Even though Texas outpaced nearly other state in job growth, it is apparent that small business owners are having a hard time finding skilled workers. Texas is implementing initiatives to introduce skilled workers to the entrepreneur.
- Texas doesn’t want the government to mess with private property
The Environmental Protection Agency (EPA) certainly has its place, I’m just not sure it’s in Texas. The EPA is calling for federal jurisdiction on property fifty miles away if there is a ditch that might hold water. If the EPA walks on a Texas landowner’s property in Texas and tells him what to do, there are places where boots become very uncomfortable.
- Texas doesn’t tolerate red tape
Regulation is simply just another form of tax. Small business owners are tired of it. Private sector commerce would never retain customers using the systems from government. It’s simply customer service. Until states make life easier, they are stealing time from an entrepreneur from actually producing something. Governor Greg Abbott doesn’t like it either. The newly elected governor of Texas is calling for reducing licensing requirements. He’s right, there is no need for licensing hair braiders or shampoo apprentices.
- Texas is prudent.
A successful commercial landscaper whispered to me that he had a freakishly awesome revenue year in 2014. What’s he going to do in 2015? Set aside a pile of cash to prepare for leaner years. The prudent approach to business can also be recognized by the size of the State of Texas Reserve Fund. The Texas $8 billion reserve fund is more than Florida’s, California’s, and all other 49 states…combined!