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Background Information on the Texas Economy

With a 5.78% GDP growth rate from 2011 to 2012, the Texas economy is growing at the pace of an emerging market, yet it has the infrastructure and population of a mature economy. The state's low cost of living combined with its vast natural resources including the Eagle Ford shale of South Texas (which has now surpassed North Dakota's enormously productive Bakken shale in oil production) has made Texas an economic powerhouse that is projected to grow for many years to come. From April 2012 to April 2013, Texas added 326,000 jobs and its Construction industry grew by 7.1%. Eight of the country's fifteen fastest growing big cities are located in Texas.

Companies that have taken advantage of Texas' vibrant and growing economy nurtured by low taxes, an affordable cost of living, business-friendly culture, and a reasonable regulatory environment have added hundreds of millions of dollars to their bottom line.

Texas versus California: Two Competing Economies –
One Winner, Texas!

Net Job Gain/Loss January 2008 to March 2013

checkmark +552,900 Texas California -544,200

Unemployment Rate as of June 2013 (nationwide average is 7.6%)

checkmark 6.5% Texas

(#112) 6.7% Dallas
(#112) 6.7% Houston
(#112) 6.7% San Antonio
(#52) 5.8% Austin
California 8.5% (ranked #41 in US)

Los Angeles 9.2% (#292)
San Jose/Silicon Valley 6.9% (#129)

Debt per Capita

checkmark $1,513 Texas California $3,990

State Income Taxes

Income of $250,000 +
checkmark $0 Texas California 10.3%
Income of $1,000,000 +
checkmark $0 Texas California 13.3%

Franchise Tax Rates

For Companies Reporting Losses or No Revenue:
checkmark $0 Texas California $800
For Companies Reporting $9,999,999 in Revenue:
checkmark $57,500 Texas California $884,000
For Companies Reporting $200,000,000 in Revenue:
checkmark $2,000,000 Texas California $17,680,000