California’s Anti-Business, High-Tax Policies are Driving Businesses and People Away: Jonathan Williams in The Orange County Register
Chevron’s exit serves as a stark reminder that poor economic practices, overregulation, and high taxation have real consequences—and they are driving businesses and individuals away.
ALEC EVP of Policy and Chief Economist Jonathan Williams recently authored an op-ed on Chevron’s decision to leave California and the need for the Golden State to embrace the policies that have made states like Texas economic powerhouses.
Chevron’s CEO, Mike Wirth, was refreshingly candid about the reasons behind this move. In a statement to The Wall Street Journal, Wirth pointed out that California’s policies have raised costs, hurt customers, and discouraged investment, ultimately stifling economic growth in the state. This is not just Chevron’s opinion; it’s a reflection of a broader trend where states with burdensome regulations and high taxes are losing their competitive edge, while states with more free market and business-friendly environments, like Texas, are thriving.
Chevron’s decision to relocate is also a testament to the power of favorable economic conditions. Texas, with its lower cost of living, no personal income tax, right to work and other free market policies, has become a beacon for companies looking to expand and thrive. The state’s recent $18 billion property tax cut, the largest in its history, shows its commitment to sending surplus dollars back to hardworking taxpayers. In contrast, California has continued to fall in economic rankings, recently sinking to 47th place for economic outlook in the 2024 edition of Rich States, Poor States. This is no surprise, given the state’s sky-high tax burden and oppressive regulatory environment, which stifles innovation and growth.
The differences between California and Texas could not be more pronounced. On one hand, Texas has embraced a model of low taxation, limited regulation, and fiscal responsibility. This approach has not only attracted businesses like Chevron but has also made Texas a top destination for individuals seeking a better economic future. In 2022 alone, Texas gained a net $10 billion in adjusted gross income from new residents, while Florida, another low-tax state, gained a staggering $35 billion. These figures highlight the power of pro-growth policies in attracting both businesses and individuals, as millions of Americans vote with their feet in search of economic opportunity.