Washington State had better watch out: just like a cheetah lying in wait for its prey to do something stupid, Texas is poised and ready to pounce on Washington businesses if voters approve Initiative 1098, which would create a statewide income tax.
In a bold letter to the leaders of 90 of Washington's best performing and largest businesses, Governor Rick Perry of Texas writes, "As the State of Washington considers a multibillion-dollar tax increase for citizens and businesses...I invite you to consider your future in America's new land of opportunity: the State of Texas." Perry adds, "If Washington doesn't want your business, Texas does. Texas has no personal income tax and no interest in getting one."
Washington should be worried at the prospect of losing jobs to Texas. The Lone Star State is a fierce competitor and has one of the best tax and regulatory climates in the nation. As I wrote in a previous blog entry, Texas has been besting its rivals, including California, in job creation due to its low taxes, fewer regulations, and a managable state budget. Texas has used its prudent tax and budget policies to create a climate perfect for job creation. In fact, Texas has been the leading private sector job creator for the past decade. Moreover, Texas has a terriffic quality of life.
Hopefully, Washingtonians will recognize that voting for an income tax will have consequences for jobs. Or else the next jobs Texas creates will be Washington's.