Texas
The Texas business boom
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.
Photo-illustration by Newsweek/Getty
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.”
Texas
Orange County wedding photographer deported on way to job in Texas
ORANGE COUNTY, Calif. – An Orange County photographer is speaking out after he was deported as he was heading to Texas to photograph a wedding.
What they’re saying:
“I was trying to do it the right way, the legal way and it just feels like they don’t care about that,” said Adan Caceres.
Caceres came to the United States under asylum in 2014, fleeing a violent El Salvador.
“My mom’s sister was murdered and she was thrown in front of our house. She also was abused sexually before they murdered her and then my brother and I were threatened by the gangs,” said Caceres.
He says he never received the deportation order that was issued in 2018 and only learned about it in 2023. He then started the process of reopening his case.
“I was paying my taxes. I’m a business owner, I’m a wedding photographer. I’m also married,” said Caceres.
In October, Caceres was going through security at John Wayne Airport, heading to a job in Texas, when he was detained. He says from Santa Ana, he was sent to the Adelanto Detention Center then one in El Paso, Texas where he says the conditions were inhumane.
“We’re not even asking ‘hey let us out’ we’re asking for water, we’re asking for us to be able to use the restroom, these are basic human rights,” said Caceres.
He says now that he’s back in the country he once fled, he’s most concerned about his wife back in Orange County.
“I was providing a lot of income for our household and now my wife has to take care of all of those things on her own; paying car insurance, the rent, all the bills,” said Caceres.
Caceres says he had no criminal history and feels he was on the path to citizenship when it was ripped away from him, leaving his future with his family uncertain.
“I don’t know if I’m going to see them. I don’t know when I’m going to see them,” said Caceres.
The other side:
FOX11 reached out to the Department of Homeland Security asking about Caceres’ case but had not heard back at the time this story aired.
The Source: Information for this story came from an interview with Adan Caceres.
Texas
SCOTUS won’t rule on Texas library’s book banning case
WASHINGTON – In a years-long Texas book banning case that’s seen rulings from multiple judges, the highest court in the nation has decided not to weigh in.
It all started in 2021, when a community in a small county near Austin decided to rid their public library’s shelves of “inappropriate” literature.
SCOTUS declines to rule
The latest:
The Supreme Court of the United States decided Monday they would not rule on an appeal in the Llano County case. Decisions by lower courts had previously allowed for books regarding topics like sex and social issues to be removed from the shelves.
According to the court’s timeline of proceedings, they first received an application to file a petition in the case on July 24. Since this summer, the petition was filed, motions to extend were passed through, numerous briefs were submitted in support of the appeal, and finally, in November, the petition was distributed for conference.
After nearly a month of no further actions, the next proceeding was a simple denial.
Anti-censorship groups request action
What they’re saying:
Numerous groups and organizations advocating free speech and expression submitted briefs to the court in favor of the appeal.
One group was The National Coalition Against Censorship, whose conclusion reads in part as follows:
“Allowing the Fifth Circuit’s decision to stand threatens to make public libraries a doctrinal oxymoron—institutions with a proud historical tradition of providing access to the widest possible range of ideas would become one of the only areas where the government could openly censor private viewpoints.”
Another group, PEN America, expressed a similar view in their brief:
“Library doors are open to all without regard to wealth, status, education, profession, or identity, and their collections run the gamut of expression. That extraordinary public service demands safeguards against official orthodoxy. Fortunately, the First Amendment has long offered such protection. This Court should reaffirm as much here.”
The removal of books from Llano County libraries
The backstory:
In 2021, a group of community members began working to have several books they deemed inappropriate removed from Llano County public library shelves.
A group of seven Llano County residents filed a federal lawsuit against the county judge, commissioners, library board members and the library systems director for restricting and banning books from the three-branch library system.
The lawsuit stated that the county judge, commissioners and library director removed several books off shelves, suspended access to digital library books, replaced the Llano County library board with community members in favor of book bans, halted new library book orders and allowed the library board to close its meetings to the public in a coordinated censorship campaign that violates the First Amendment and 14th Amendment.
In 2024, a divided panel from the Fifth Circuit ordered eight of the removed books returned.
Both the majority opinion of the 2024 panel and the dissenting opinion from Friday’s decision called the removal of the books a political decision.
What are the books?
The books at issue in the case include “Caste: The Origins of Our Discontent” by Isabel Wilkerson; “They Called Themselves the K.K.K: The Birth of an American Terrorist Group,” by Susan Campbell Bartoletti; “In the Night Kitchen” by Maurice Sendak; “It’s Perfectly Normal: Changing Bodies, Growing Up, Sex and Sexual Health” by Robie H. Harris; and “Being Jazz: My Life as a (Transgender) Teen” by Jazz Jennings.
Other titles include “Larry the Farting Leprechaun” by Jane Bexley and “My Butt is So Noisy!” by Dawn McMillan.
The Source: Information in this article comes from the Supreme Court of the United States and briefs filed in a petition to the court.
Texas
Letters to the Editor: Supreme Court’s opinion upholding Texas’ new maps is ‘blatant sophistry’
To the editor: Contributing writer Erwin Chemerinsky’s recent op-ed should be required reading for all who support our constitutional democracy (“The Supreme Court’s 3 terrible reasons for allowing Texas’ racially rigged map,” Dec. 5).
There are so many things wrong with the Supreme Court’s blocking of the lower court’s reasoned opinion that ruled the Texas redistricting map unconstitutional. As Chemerinsky points out, the three reasons given by the Supreme Court in its unsigned opinion are blatant sophistry and result in effectively making it impossible for anyone to challenge a legislature’s action in redistricting anytime in advance of a midterm congressional election.
What’s more, this decision comes from the court’s “shadow docket,” meaning it is rendered without briefing or oral argument — but nonetheless gives a green light to the challenged redistricting map for this upcoming election.
The rationale that a map drawn for purely partisan political purposes might be constitutionally permissible is stunning. In 2019, in Rucho vs. Common Cause, Chief Justice John Roberts (in upholding a redistricting map) wrote: “Excessive partisanship in districting leads to results that reasonably seem unjust. But the fact that such gerrymandering is ‘incompatible with democratic principles’ does not mean that the solution lies with the federal judiciary.” But this is where we are.
James Stiven, Cardiff
This writer is a retired U.S. magistrate judge.
..
To the editor: Chemerinsky is outraged that Texas is allowed to redraw its congressional maps, which are designed to elect five more Republicans to the House of Representatives. Would it be proper to ban Texas from doing this after California has already found legal avenues to do something similar? I’m not sure how all states can be forced to draw districts that are reasonable and fair, but Chemerinsky seems to lament the gerrymandering practice in Texas without mentioning complaints when it happens in California.
David Waldowski, Laguna Woods
..
To the editor: Although Chemerinsky accurately describes the Supreme Court’s stated reasons for the decision, the actual rationale was probably much more cynical.
First, Texas racially rigged its election district maps to favor Trump in the midterms. Second, California rigged its own maps in response, but did it better by putting it to statewide vote. Lastly, the Texas stunt got challenged in court on solid constitutional grounds and looked like it might lose, so that the whole thing might backfire against our man President Trump. And, well, we can’t have that, can we?
Ronald Ellsworth, La Mesa
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