Everything’s bigger in Texas, everything except for the tax burden we put on businesses, big and small.
The Wall Street Journal reported this morning that the pharmaceutical producer AbbVie, maker of the highest selling prescription drug on the market, is in the process of buying 25% of a fellow pharmaceutical company in Dublin. AbbVie isn’t buying the Irish company because of an affinity for all things green. AbbVie is spending nearly $50 billion dollars because it knows it will save far more than that by avoiding America’s punitive corporate tax structure.
AbbVie is hardly the first company to leave our shores for tax reasons. In fact, Stuart Varney of FOX News reports they are the 48th in recent years to do just that. Those companies leave in hopes of finding a brighter future someplace with fairer tax standards. Sound familiar?
That is because at 35% America has the highest corporate income tax rate in the developed world. Of the 34 countries that are part of the Organization for Economic Cooperation and Development, corporations based in the other 33 pay on average just a 25% rate on their income.
Thankfully we do things a little different here in Texas. With no corporate income tax Texas has long been a destination for businesses looking to invest more in R&D and less in failed government subsidies. That is why Texas has led every other state in job creation since the start of the 21st century. Not only have we led the way in the number of jobs we create, but more than 50% of those jobs have been in the top half of the wage distribution curve.
You see, some people like to underestimate us here in Texas. They like to ignore the evidence we provide for how well our way of life can work. While our opponents are busy trying to bring a liberal agenda to Texas we are busy trying to make sure we continue to lead the nation in creating jobs that pay a fair wage.
Democrats long ago decided that the way to lift up those in need was to pull down those with more. It is a strategy that has unequivocally failed, as the gap between the struggling factory worker and the celebrities on speech tours is now larger than it has been since the 1920’s.
Texas shows them we have a better way. States like Illinois cripple a company like AbbVie with an income tax over 40% when combined with what the government takes. Those states are now paying for it in lost jobs as companies move overseas. In Texas we can point to the number of jobs we create every year, many of them in the upper income brackets, and know we have the answer.
Here in Texas we know the government can never use our hard earned dollars as well as we can. We know the government can never invest as efficiently in the economy as business can because they lack our incentive of a brighter future for our family. Most of all, here in Texas we know that we’re better off letting the small family owned business down the street keep their earnings because we know the people who own that business; that farm. We know they can and will use those earnings to create a first job for our children, a second job for our neighbors trying to build a family or a final job for our parents.
The people trying to change Texas would do well to rethink their longtime strategy of tax now, ask questions later. Our opponent belongs to a party that trades on making its supporters feel warm and fuzzy as opposed to actually making anything. Thankfully here in Texas we know how to make nearly everything, especially well paying jobs.
Here in Texas our per-capita income is higher than the national average and we continue to lead the country in jobs created across all pay scales, of which the fastest growing is those jobs paying more than $16 an hour.
In a report last year, Forbes named the top 10 cities to find a good job. Not coincidentally five of those 10 were in Texas, not to mention the entire top four. Those jobs exist because we have long understood the value of letting businesses create them instead of taxing them out of the state.
We understand that value because we understand the people who own those businesses. They are our neighbors, our friends and members of our congregations. The story of job growth in Texas is one of fair tax rates but it also one of faith and trust. We have faith in our fellow Texans to reinvest the money they make. We have trust that we don’t have to go anywhere else to fulfill our dreams and raise a family.
Texans believe in ourselves and we believe in each other. We know that given the chance, businesses here in Texas will invest their money back from where it came. Our opponents like to sell a dream of handouts for everyone paid for by businesses and overburdened citizens nationwide. It is a dream we have watched fail year after year.
But instead of that failure permeating our borders, we have thriving cities; businesses and most importantly we have thriving people making a fair wage. We have faith and trust in Texas businesses big and small because we have faith and trust in the Texans who run them. That trust has been rewarded time and time again throughout the years. As more companies move to Texas we will only see that reward grow.
Men and women fleeing from persecution and unreasonable taxes founded this country. How ironic that men and women are now being forced to take their businesses anywhere else to avoid unreasonable, punitive taxes. Texas on the other hand, will continue to welcome those men and women with open arms reflective of the trust we have in them.
Our opponents can keep their dream of burdensome taxes and government interference. It is a dream that must seem more a nightmare as the reports grow of businesses leaving our shores. They can keep their dream because we have our reality. It is a reality of fair taxes and exemplary job growth, a reality representative the founding of this country. It is a befitting the American dream that still thrives throughout Texas.
Find writer Calum Hayes here