Texas has seen an economic boom over the past few years with gross domestic product (GDP) growth rates significantly outpacing the U.S. average, while a string of major corporations have announced they are moving their corporate headquarters to, or investing heavily in, the Lone Star State.

Speaking to Newsweek, several experts on the Texan economy or politics attributed this primarily to low taxation and business-friendly regulations. However, two warned there could be a future clash between corporate interests and the social conservatism of Texas Republicans who control both chambers of the state legislature as well as the governor’s office.

Business Investment

On February 18, KFC, the fast-food giant formerly known as Kentucky Fried Chicken, became the latest company to announce they are moving their headquarters from Louisville, Kentucky, to Texas choosing Plano, a city on the northern outskirts of Dallas. Speaking to Newsweek, David Gibbs, chief executive officer of KFC’s parent company Yum! Brands, said the move would “position us for sustainable growth” and “help us better serve our customers, employees, franchisees and shareholders.”

Earlier in February, real estate listing website Realtor.com announced it was transferring its corporate headquarters from Santa Clara, California, to Austin, with the company telling Newsweek the city would become “its top hiring location.”

In July 2024, billionaire Elon Musk announced he was moving the headquarters of X, formerly Twitter, and SpaceX to Texas in response to California Governor Gavin Newsom approving a move that stopped teachers being required to inform parents if their children change their gender identity.

In an X post, Musk wrote: “This is the final straw. Because of this law and many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California to Starbase, Texas.”

Musk is now a close ally to President Donald Trump and heads up the recently formed Department of Government Efficiency (DOGE).

Financial services company Charles Schwab Corp. was based in San Francisco until 2021 when it shifted its headquarters to Westlake, Texas. In August 2024, oil giant Chevron announced it was moving its headquarters from San Ramon, California, to Houston.

Earlier this month, Apple announced it will build a new 250,000-square-foot manufacturing facility in Houston to support its “personal intelligence system” as part of a wider $500 billion investment across the U.S.

Texas’ plentiful land and relatively cheap energy have also made it a favored location for the large data centers used to power artificial intelligence (AI). In January, Trump announced Stargate, a combined $500 billion venture involving OpenAI, Oracle and SoftBank, which will be centered around the Lone Star State.

Texas Predicted to Be Biggest U.S. State by 2045

According to figures from the Texas Comptroller’s Office in 2024, the Texan economy grew by 4.8 percent, double the 2.4 percent that Commerce Department data shows was achieved by the nation as a whole.

U.S. Census Bureau figures show that between July 2023 and July 2024 the population of Texas rose by 562,941, with new residents attracted by the availability of work and low taxation. This gave Texas an annualized growth rate of 1.8 percent, the third highest in the U.S. behind Florida and the District of Columbia.

A report released by Realtor.com in February concluded that in 2045 Texas’ population will have surged by 35 percent to 42 million, up from the current 31 million, and would replace California as the most populous state.

Taxation and Regulations

Texas is just one of nine states across the U.S. that doesn’t charge any income tax on individuals or companies below a certain revenue ceiling, while its business tax rate is low and falls to zero for companies below a certain threshold.

According to a 2024 study published by Realtor.com, Texas accounted for 15 percent of new housing permits issued across the U.S., despite only making up 9 percent of its population, helping to keep prices and rents relatively cheap despite the rapid inflow of people.

Professor Benjamin Powell, an economist who teaches at Texas Tech University, attributed the state’s thriving economy to a comparatively low cost-of-living, low taxes and less stringent regulation.

“Companies are fleeing high tax, high regulation, high cost states like California, New York, and Illinois,” he told Newsweek. “They are attracted to Texas because we have lower taxes and regulation, and their workers face a lower cost-of-living here than in those other states.”

Professor Jon Taylor, a state politics expert who teaches at the University of Texas at San Antonio, agreed with this assessment, telling Newsweek: “The governor regularly preaches that corporations are relocating or building new capacity would tell you that it’s because of the so-called ‘The Texas Miracle,’ which drives perceptions that we’re a business-friendly state. He’s not wrong about the business-friendly part. We are.”

He continued: “We can rattle off the usual bullet points about a strong economy with no state income tax, relatively minimal business regulations (particularly for limited liability companies), a burgeoning talent pool created a number of world class research universities, and a leader in energy, space exploration, artificial intelligence, and tech manufacturing. Those bullet points have convinced a number of large corporations to relocate or develop facilities in Texas during the past decade or more.”

Joshua Blank, who heads the Texas Politics Project at the University of Texas at Austin, told Newsweek: “Texas politicians are pretty consistent, and aggressive about branding Texas as a pro-business state. And after over 20 years of Republican control, the rhetoric’s been followed with years of legislative and executive actions that are directly intended to be friendly to business.”

In a statement provided to Newsweek, Andrew Mahaleris, Texas Governor Greg Abbott’s press secretary, said: “Companies keep moving here because in Texas, we move at the speed of business by cutting red tape and protecting industry from harsh job-killing restrictions and unnecessary regulations that can burden innovators elsewhere.

“Texas is the 8th largest economy in the world and the economic engine of the nation, leading all states for jobs added over the last 12 months(…)

“Texas remains number one because people and businesses are choosing our state over any other for the unmatched competitive advantages we offer: no corporate or personal income taxes, a predictable regulatory climate, and a young, skilled, diverse and growing workforce.”

Political Concerns

Taylor warned of a potential upcoming clash between the values of companies moving to Texas for business reasons and the state’s social conservatism.

Referring to states making the move, he said: “Question is whether they’re comfortable moving to Texas and investing long-term given issues such as the state’s draconian reproductive choice laws, limits on voting accessibility, dismantling diversity, equity, and inclusion policies, attacks on environmental, social, and governance standards, and harsh immigration policies.”

This question was also raised by Blank, though he was more optimistic on the outcome.

“As more companies, and especially more high-tech companies, move to Texas, it does raise the question of whether Texas’ conservative politics will clash with a potentially less conservative workforce,” he said. “So far, Texas’ politics hasn’t led companies to reconsider their decisions, and it doesn’t seem likely to in the future.”

Powell said that many of those moving to Texas actually share the state’s dominant values.

“Some Texans worry that these interstate migrants will bring their liberal values and politics with them to Texas, but the opposite seems to be the case,” he said. “The Californians leaving for Texas often share more political values with Texans than they do with other Californians.”

HOUSTON – Hundreds of animals rescued from a fur and urine farm in Ohio are now finding new homes in Texas, with more on the way. Bears Etc. in Huntsville has already moved nearly 30 animals to a rescue near San Antonio.

Kati Krouse, founder of Bears Etc., is now busy preparing for the arrivals of foxes at her rescue.

“These holes will support a new home for four foxes rescued from a fur and urine farm near Cleveland, Ohio,” Krouse said.

Krouse made a trip up to Ohio earlier this year to transport animals back to Texas. She plans to make a trip in the coming weeks to re-locate more animals.

The fur farm’s owner passed away in December 2024, worsening an already dire situation, according to Humane World for Animals.

The organization reports foxes, raccoons, wolf-dog hybrids, skunks, opossums, and coyotes were living in filthy wire-bottom cages with little to no protection. Some animals were missing toes, ears, tails, and limbs, while many were emaciated and severely dehydrated. Responders found some animals dead and covered in snow, and one coyote was found dying, caught in a leghold trap.

In total, 410 animals were rescued, more than 300 are still alive, according to Kelly Donithan of Humane World for Animals.

“We obviously had to make some humane decisions for animals on site. There were quite a few suffering deeply,” Donithan said.

Krouse described the conditions as one of the most horrifying things she has ever seen in her 30 years of rescue work.

“There are no words that can describe the hell that these animals were living in. They lived their entire lives in cages meant for rabbits,” she said, visibly emotional.

A volunteer from Bears Etc., a U.S. veteran, also expressed his shock at the conditions.

“Having served many years overseas in the Middle East, not a lot is shocking to me. But to see the condition those animals were subjected to was on the higher side of the shocking scale,” he said.

Animals at the farm were raised and slaughtered for fur, sold as exotic pets, and used for urine farming. Krouse criticized the practices, stating, “Even though it says it’s humanely collected, USDA standards are not enough for most animals.”

There are no federal regulations for animal welfare on fur farms, and this particular farm was licensed by Ohio’s Department of Natural Resources despite past fines. Ohio lacks laws for fur farms, unlike New York, which has passed legislation to protect animals.

When asked if anyone would face charges in this case, Donithan responded, “No. While he was a pretty lone operator, he did have one employee who worked under his authority. We are hoping to see some regulation change.”

Humane World for Animals urges the public to help by donating to rescues, contacting lawmakers, and avoiding products from these farms. Bears Etc. is ready to return to Ohio for the foxes once they receive the green light from Texas Parks and Wildlife.

In the first of two Elite Eight games on Saturday, the swarming offense of Texas Tech will lock horns with the relentless scoring prowess and swagger of Florida. It also will be a clash of two of the best up-and-coming coaches in the country, Grant McCasland and Todd Golden.

How to watch No. 1 Florida vs. No. 3 Texas Tech

• What: West Regional, Elite Eight
• Venue: Chase Center — San Francisco
• Time: 6:09 p.m. ET, Saturday
• TV: TBS, truTV
• Streaming: March Madness Live
• Watching in-person? Get tickets on StubHub.

Don’t celebrate too early; you never know what can happen. Texas Tech trailed Arkansas by six with 1:10 remaining, but pushed the game to OT and sent the Razorbacks home scratching their heads. Tech beat Arkansas by attacking the offensive glass. Over their last five games, the Red Raiders have averaged 14.4 offensive rebounds per game, including 22 against Arkansas. To beat the Gators, they will need to continue that effort and make 3s.

Both teams can score in bunches and seem to play better when the game is on the line. You won’t see any panic from either squad, as both had to overcome deficits to punch their tickets to the Elite Eight.

Both offenses are among the top five in the country, but Florida has three guards capable of putting up 20 points with ease. How Tech defends them in the pick-and-roll will be crucial.

Tech’s best offense is letting Darrion Williams and/or Elijah Hawkins operate in the pick-and-roll with Big 12 player of the year JT Toppin. If it ain’t broke, don’t fix it.

Both teams have future NBA players who could be drafted in the next couple of years, so expect them to show up big. But keep an eye on Texas Tech freshman Christian Anderson. He’s coming off a career-high 22 points and will need to make shots if Chance McMillian (upper-body) is still out.

Florida vs. Texas Tech odds

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