Texas Proves Low Taxes and Freedom Unleash Economic Boom America Needs

Texas stands tall as the economic envy of the nation, a beacon of what’s possible when government gets out of the way and lets enterprise thrive. Governor Greg Abbott’s recent call with U.S. Treasury Secretary Scott Bessent wasn’t just a routine chat, it was a masterclass in why Texas keeps winning. The state’s economy is a juggernaut, fueled by diverse industries, a relentless energy sector, and a refusal to bow to bureaucratic overreach. While other states grapple with stagnation or misguided policies, Texas has been the top exporting state for 23 years straight, a record that screams resilience and vision.

Abbott and Bessent didn’t mince words. They celebrated Texas’ low-tax, business-friendly climate, a formula that’s drawn companies and jobs like moths to a flame. The Governor spotlighted the state’s energy dominance, leading the nation in production and ranking high in liquified natural gas exports. This isn’t just about numbers, it’s about real-world impact, jobs, families, and communities thriving because Texas dares to prioritize freedom over red tape.

Yet, not everyone sees the brilliance. Some policymakers, particularly those cozy with federal overregulation, warn that Texas’ growth could falter under new tariffs or global trade shifts. They point to potential job losses or supply chain hiccups, as if Texas hasn’t weathered storms before. These naysayers miss the point, Texas’ success isn’t luck, it’s strategy, and Abbott’s playbook is built to outlast their gloom.

The conversation with Bessent also turned to federal tax cuts, a topic that’s got Washington buzzing. With Congress inching toward a new tax bill, Texas stands as proof that slashing taxes sparks growth, not deficits. Abbott’s vision, paired with President Trump’s push for bold reform, could set the stage for an economic renaissance, if only the doubters would step aside.

Let’s talk numbers, because Texas doesn’t just talk big, it delivers. The state accounts for 16% of U.S. trade, a staggering feat for a single state. Its $336 billion budget and $28.5 billion rainy day fund show fiscal muscle that puts spendthrift states to shame. Even with tariff concerns looming, Texas’ labor market remains robust, and its GDP growth outpaces most rivals. This isn’t a fluke, it’s the result of deliberate choices, no state income tax, streamlined regulations, and a culture that rewards hard work.

Abbott’s focus on energy is particularly sharp. Texas leads in oil, gas, and renewables, but its LNG exports are a global game-changer. With U.S. LNG capacity set to jump 19% in 2025, Texas facilities like Corpus Christi Stage 3 are at the forefront. Despite China’s recent suspension of U.S. LNG imports amid trade spats, Texas’ diversified markets, from Europe to Asia, keep the state resilient. The Dallas Federal Reserve’s warnings about tariff impacts, a potential 1.5% growth hit and 100,000 job losses, are real but overstated. Texas has faced worse and come out stronger.

Trade with Mexico, Texas’ largest partner, is another pillar. The state’s integration into North American supply chains makes it a linchpin of U.S. trade policy. Abbott and Bessent’s discussion of ongoing U.S.-Mexico negotiations underscores a truth, Texas doesn’t just react to federal policy, it shapes it. While some fret over Trump’s 10% baseline tariffs, Texas’ track record suggests it can adapt, leveraging its export prowess to blunt any blow.

Contrast this with states like California or New York, where high taxes and regulatory mazes choke growth. Their leaders often push for federal handouts or restrictive trade policies that hurt more than they help. Texas, meanwhile, proves that less government meddling means more prosperity. The ALEC-Laffer State Economic Competitiveness Index backs this up, states with free-market reforms like Texas consistently lead in GDP, jobs, and migration.

The federal tax cut debate is where Texas’ influence shines brightest. With the 2017 Tax Cuts and Jobs Act’s provisions set to expire, Congress is under pressure to act. Bessent’s assurance that a new bill is moving toward Trump’s desk is music to Texas’ ears. The state’s no-income-tax model is a living testament to the power of keeping more money in people’s pockets. When businesses and families aren’t crushed by taxes, they invest, hire, and spend, creating a virtuous cycle of growth.

Skeptics, often from high-tax states or entrenched D.C. circles, argue that tax cuts balloon deficits or favor the wealthy. History begs to differ. The Kennedy and Reagan tax cuts spurred economic booms, and the 2017 TCJA fueled record-low unemployment and robust growth before pandemic disruptions. Texas’ own data, rapid job creation, business formation, shows what happens when tax policy prioritizes people over government coffers. Those pushing for higher taxes or complex regulations ignore this evidence, clinging to outdated ideas that stifle innovation.

Abbott’s dialogue with Bessent also signals a broader truth, federal-state collaboration is crucial. Texas isn’t an island, it thrives within a national framework. But that framework must empower states, not shackle them. Trump’s push for sweeping tax reform, potentially rivaling the TCJA, aligns with Texas’ ethos, cut taxes, simplify rules, and let the economy roar. If Congress delivers, states like Texas will lead the charge, proving once again that freedom drives prosperity.

Texas’ story is America’s story, or at least it could be. Governor Abbott’s vision, rooted in low taxes, robust trade, and energy leadership, is a roadmap for national success. His call with Secretary Bessent wasn’t just about celebrating past wins, it was about doubling down on what works. As tariffs and global uncertainties loom, Texas’ resilience, built on decades of smart policy, positions it to weather any storm. The state’s $28.5 billion rainy day fund and diversified economy are insurance against federal missteps or trade disruptions.

The choice is clear. Follow Texas’ lead, embrace tax cuts, streamline regulations, and prioritize trade that puts America first, or cling to the tired policies of high-tax, overregulated states that lag behind. Abbott’s Texas proves that prosperity isn’t a mystery, it’s a matter of principle. As Congress debates tax reform and trade deals, the nation would do well to look to the Lone Star State, a shining example of what’s possible when freedom and opportunity take the wheel.