Austin, TX – Senator Paul Bettencourt (R-Houston) shared insights on Texas's achievement in the American Legislative Exchange Council's Rich States, Poor States: ALEC-Laffer State Economic Competitive Index. Bettencourt noted, "Texas leaping up the rankings in ALEC's Rich States, Poor States up to 6th is a testament to a solid continually growing economy, legislative leadership like Lt Governor Patrick committed to economic freedom, and the passage of a record property reduction bill pouring billions of dollars back into taxpayer's pockets."
Moreover, Senator Bettencourt highlighted the significance of homestead exemptions in tax policy, stating, "It should be noted that Arthur Laffer has long exposed the public policy benefits of homestead exemptions in tax policy, and the public's approval of Prop. 4 means Texas has an eye-popping 100k homestead exemption for school property taxes."
Senator Phil King, Texas ALEC Delegation Chair, also commended Texas's progress, stating, "The great work in Rich States, Poor States is clear evidence that Texas's pursuit of the ALEC principles of free markets and limited government is working." King emphasized the state's impressive leap in rankings from 13th to 6th.
The report evaluates 15 economic policy variables, with tax reductions, debt reduction, and free-market policies playing a crucial role in state competitiveness and growth. Texas's Economic Performance ranking was 6th in the nation, reflecting its GDP growth, net domestic migration, and non-farm employment growth.
Senator Bettencourt's bill SB 2, known as Proposition 4, significantly contributed to Texas's economic success by providing $18.1 billion in property tax reduction. This initiative, also referred to as the “Texas Two-Step,” includes a $100,000 homestead exemption and an 18% decrease in M&O property tax rate compression. Additionally, SB 3, led by Senator Bettencourt, doubled the franchise tax exemption, benefiting 67,000 Texas businesses.
The Rich States, Poor States report underscores the positive impact of Texas's commitment to free markets and limited government, positioning the state as a leader in economic competitiveness and growth.
