Will the economy in an independent Texas be better?

On average, Texas ranks as having the 10th largest economy in the world. There is no doubt that an independent Texas will do better.

To quote the conservative firebrand and Texit advocate, Claver Kamau-Imani, “After Texit, we’re gonna be rich!” He’s not exaggerating. Texas already collectively possesses a fair amount of wealth as one of the largest economies in the world. However, Texit promises to bring that wealth to every citizen of Texas. In exploring the negative effect of excessive federal regulations on Texans, the cited study showed how it has shrunk the paychecks of Texans by 75 percent. Flip the script and look at it from the standpoint of a Texas no longer subjected to those excessive federal regulations. Over time, the average Texan could see a 400 percent increase in take-home pay.

The retention of this type of wealth by Texans translates into an explosion of new business startups and corporate expansions, reducing unemployment to near zero. Texas can experience double-digit economic growth as the lack of an income tax turns Texas into an international haven for wealth and foreign investment. All of this economic activity results in an increase in government revenue, leading to better schools, improved infrastructure, and additional tax breaks.

The best data available shows a correlation between increased consumer spending and an increase in household income at a near 1:1 ratio. With these kinds of numbers, Texas could eliminate the property tax, leave the sales tax rate untouched, and still produce an increase in government revenue over and above what Texans currently pay to both the state and federal governments.

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