Stimulus a boon to Texas construction
A report released by the American Legislative Exchange Council last week suggests that Texas may be on the right path for economic recovery.
The Lone Star State ranked 10th nationally in terms of economic competitiveness according to the second edition of Rich States Poor States: ALEC-Laffer State Economic Competitive Index. The report offers a roadmap for economic recovery based on state policies that have an impact on growth.
The American Legislative Exchange Council advocates for legislation that promotes free-market economic models. The Washington D.C.-based group draws its membership from state lawmakers and members of the private sector.
Texas was ranked one of the most competitive state economies in the nation for not having a state income tax low business taxes good employment policies and recently enacted tax reductions.
However the report nicked Texas for having high property taxes high state debt and what the studys authors call a sub-par tort liability" system.
The report argues that states must not allow their access to federal stimulus dollars to encourage out-of-control state spending. In February President Barack Obama signed the American Recovery and Reinvestment Act into law which furnished $787 billion toward improving the countrys economy.
We must control state spending while making wise investments that promote economic growth and job creation" Speaker of the Texas House of Representatives Joe Straus says in commenting upon the report. Straus is a Republican lawmaker from San Antonio.
The top five states are Utah Colorado Arizona Virginia and South Dakota. The five worst states are New York (50th) Vermont (49th) Rhode Island (48th) Maine (47th) and New Jersey (46th).
Stimulus a boon to Texas construction
The economic impact of stimulus investment in Texas would add about $2.7 billion to the states gross domestic product and could add more than 8000 construction jobs in the state according to a report prepared by the Associated General Contractors of America.
Stimulus investment in the state could also lead to an additional $1 billion in nonresidential construction spending the addition of about $841 million to personal earnings and the creation of about 24000 overall jobs the report said.
Construction employment in the state totaled 635000 workers in February 2009 a 6.2 percent decrease from the peak of construction employment in Texas in April 2008 the report found.
In Texas personal income growth grew 6 percent between 2007 and 2008 compared with a national growth rate of 3.8 percent. And nonresidential construction spending in Texas total about $54.3 billion in 2007 which contributed $36.7 billion to the state GDP of $1.1 trillion the report said.
ALEC: States with low taxes spending & regs prosper best
The top performing states keep taxes spending and regulatory burdens low while the biggest losers in the book tend to share similar policies of high tax rates unsustainable spending and regulation" says co-author Jonathan Williams director of the Tax and Fiscal Policy Task Force for ALEC. State governments that believe they can bring about economic recovery by growing government and increasing taxes are sadly mistaken."
The authors found that states with a high and rising tax burden are more likely to suffer through economic decline while those with lower and falling tax burdens are more likely to enjoy robust economic growth."
The full report can be found at
www.alec.org
