Chuck DeVore Discusses Texas’s Appeal to Fortune 500 Companies
Chuck DeVore, a former congressman from California, spoke about the trend of companies leaving California for Texas. He emphasized that lower taxes and fewer regulations make Texas particularly attractive for Fortune 500 companies. Delays in California’s infrastructure projects, like high-speed rail, as well as a stark business climate shaped by strict environmental regulations, further push businesses away.
During a recent meeting, Treasury Secretary Scott Bessent pointed out the evident differences between Texas and California, illustrating how one is red and the other blue in terms of governance. He remarked, “In California, we have seen firsthand what years of governance failures look like: a tax system hostile to ambition, a regulatory state that stifles business, and an economic climate that is indifferent to consequences.”
California has lost several notable companies and wealthy individuals who cite the high regulatory burden and tax burdens as major reasons for their departure. Bessent noted this outflux, stating, “It’s starting to feel like a tale of two states.” There’s a growing recognition that Texas’s pro-business policies are drawing more families and businesses away from other states.
Bessent also discussed how energy policy is crucial to President Trump’s economic strategies. He stated that while advancements in AI may rely on our coding skills, the real competition will hinge on the availability of energy, claiming, “Economic security is national security.” Texas, he added, has been leading the way in energy production, recently surpassing California in solar capacity and reaching impressive levels in crude oil production and low-carbon energy initiatives.
Moreover, Texas has seen rapid energy sector growth, largely driven by increased demand linked to new data center construction. The state’s overall business environment and low taxes have made it a desirable destination for many American companies, including big names like Chevron, Tesla, and HP, which have relocated their headquarters from California.
Bessent concluded by stating, “Texas is America’s center of gravity because we foster the conditions in which families and businesses thrive.” Data supports this view, showing that from 2018 to 2025, a significant number of companies chose to move their headquarters to cities like Houston, Dallas, and Austin. In fact, Texas saw a net gain of over 56,000 taxpayers from 2022 to 2023, reflecting its growing appeal.
