FILE – California Gov. Gavin Newsom speaks to reporters outside the California Natural Resources Agency in Sacramento, Calif., on Oct. 7, 2022. The state of California has filed a lawsuit against some of the world’s largest oil and gas companies, claiming they deceived the public about the risks of fossil fuels blamed for climate change-related storms and wildfires that caused billions of dollars in damage.
The differences between California and Texas could not be more pronounced. On one hand, Texas has embraced a model of low taxation, limited regulation, and fiscal responsibility. This approach has not only attracted businesses like Chevron but has also made Texas a top destination for individuals seeking a better economic future. In 2022 alone, Texas gained a net $10 billion in adjusted gross income from new residents, while Florida, another low-tax state, gained a staggering $35 billion.
Chevron’s departure should serve a wake-up call for California and other high-tax states. The movement of people and wealth across state lines is not just a coincidence—it’s a direct result of policy decisions. States with favorable economic policies are winning the battle for businesses and residents, while those that cling to outdated, punitive approaches are losing out.report, which I co-author with economists Arthur Laffer and Stephen Moore, has tracked these trends.
Chevron’s relocation should serve as a cautionary tale for states that have neglected their economic competitiveness in favor of high taxes and overregulation. The stakes are high, and the consequences are real.