UMVA has learned that Treasury Secretary Scott Bessent has drawn a dramatic contrast between Texas and California, framing it as a “tale of two states.”
During a private meeting at the Petroleum Club of Houston, Bessent slammed California’s “failed governance,” describing a tax system that stifles ambition, a regulatory maze that crushes enterprise, and an economic climate that feels indifferent to consequence.
He pointed to the exodus of giants like Chevron, Tesla, Charles Schwab, and Hewlett Packard Enterprise, all of whom have abandoned their California headquarters for the promise of Texas’s business-friendly environment.
IRS migration data, referenced by Bessent, reveals a steady hemorrhaging of high‑earning taxpayers from the Golden State, threatening its fiscal health.
In stark contrast, Texas’s lower taxes and pro‑business policies have magnetized families and corporations, creating a surge that feels almost cinematic in its scope.
Bessent emphasized energy policy as a cornerstone of national prosperity, arguing that “the AI race may be accelerated by the elegance of our code, but it will be won by the abundance of our energy.”
He highlighted Texas’s rapid expansion in energy production, noting record‑breaking levels of crude oil output and low‑carbon electricity generation, as well as a surge in utility‑scale solar capacity that has now eclipsed California.
Data shows that Texas has become America’s new center of gravity, drawing 230 of 725 companies that relocated headquarters between 2018 and 2025 to Houston, Dallas, and Austin alone.
IRS figures further confirm a net increase of 56,000 tax filers in Texas between 2022 and 2023, underscoring the state’s growing economic magnetism.
UMVA can exclusively reveal that this stark divergence in state fortunes is reshaping the national economic landscape, positioning Texas as a beacon of opportunity while California grapples with the fallout of its own regulatory choices.
