Texas is open for business—permanently—as the state solidifies business-friendly measures in its constitution. Texas is signaling to businesses and institutions that it is safe to relocate, as the state will not be vulnerable to massive political regulatory shifts.
The Texas Stock Exchange (TXSE) is poised to open in Dallas next year. Y’all Street has been rapidly booming in popularity as Wall Street refugees flee south. There are already nearly 400,000 financial professionals in the area and institutions like Goldman have plans to create new facilities nearby. To ensure that businesses continue to flee south, Texas has permanently issued a ban on securities transaction taxes. By law, the state may not impose taxes on payroll transactions or financial trades.
Conduct business in Texas, and Texas will not extort your earnings. New modifications to the Constitution prohibit any taxes on capital gains. Texas will not profit from the sale of real estate, capital assets, the sale of investments. Businesses can rest easy in knowing that there will not be a tax on success at the state level. Let us not forget that the Biden Administration wanted to slap a 44.6% tax on capital gains federally. There have been proposals at both the state and federal levels to tax unrealized gains—a sure way to financial suicide.
Again, wealth is not a punishable offense in Texas. The third constitutional amendment bans inheritance and estate taxes. Inheritance Taxes are Marxist and highly destructive economically. Suppose you have a company worth $100 million; your children must pay 40% taxes. They have to fire people and sell assets to cover the tax. Heirs have been forced to sell their family businesses or farms to pay inheritance/death taxes. It is a Marxist assault on property and passing on family wealth. The tax itself disincentives entrepreneurs from creating a legacy. No one aims to work their lives away only to pass on their earnings to the state.
CAPITAL MUST BE ATTRACTED. Capital cannot be strangled or confined. Hunting down capital causes it to flee for safety, a safety that can now be found in Texas.