The stark numbers behind the nation’s most powerful economic engine — and the one threat holding it back
For 22 consecutive years, Texas has been the best state to do business, according to company leaders from across the nation. As a leading exporter and energy producer, Texas’s $2.9 trillion economy is the 8th-largest in the world. Under Governor Greg Abbott, the state has added 2.5 million jobs—our labor force growth is nearly three times the national rate of 8.8%.
When talent chases opportunity, employers chase talent. Since 2015, that cycle of success has brought more than 320 company headquarters to the Lone Star State (more than any other state. Tesla, Oracle, Coinbase, Charles Schwab, Bimbo Bakeries, and, soon, ExxonMobil are just a few of the notable employers that have made the move.
Texas isn’t just the best state for big business. In fact, Texas is home to 54 Fortune 500 companies, 3.5 million small businesses, and saw nearly 500,000 new business applications filed in 2024. That’s a cycle of success that reaches every level of entrepreneurship.
Texas isn’t stopping there, either. The pipeline of opportunity is getting bigger every day for the next generation of Texans. Texas A&M recently broke ground on a $226 million semiconductor chip research facility. Texas Instruments is building a $40 billion semiconductor plant in North Texas. And the Stargate AI project is expected to inject $500 billion into the state economy. This type of economic development occurs when state policies prioritize growth and innovation.
All of these economic factors have made Texas the fastest-growing state, as more Americans look to get closer to opportunities that transform entire generations. And yet, a state that seems to be taking off like a rocket ship is still held back by a hidden anchor. All of this success has also made Texas one of the most expensive civil justice states in America today.
Don’t Tax the Texas Miracle, Unleash It
Forty years ago, Texas was known for jackpot verdicts. “Justice for Sale” was the brand promoted by civil courts. Despite significant changes over the last 30 years—changes that enabled the Texas Economic Miracle to take off—new schemes and courtroom tactics continue to be a drag on the economy. The hidden tort tax is costing Texas families thousands of dollars every year and making it harder to make ends meet at the grocery store and gas station.
More broadly, excessive lawsuits cost the Texas economy $20-30 billion annually in higher insurance premiums (that’s 10x the amount Texans approved to shore up water resources). Researchers estimate that the Texas economy would add another $50-80 billion over the next decade if common-sense tort reform measures were enacted. Instead of supporting a hidden tort tax, those dollars could go to tax relief, water supply, roads, and be reinvested in our workforce.
Ironically, the same companies choosing Texas over California and New York are escaping high taxes and replacing them with the hidden tort tax, a surcharge that undercuts the advantages of moving to a low-tax state like Texas. The last time Texas prioritized tort reform, the Texas Miracle was created. The Lone Star State will remain the best place to do business — with common-sense lawsuit reform, the Texas Miracle gets even better.