HOUSTON, Texas — The Lone Star State is the most economically free state in the nation, according to a new report released by the Fraser Institute.
The ranking took into account the size of government, taxes, red tape, and labor market freedom.
The study said, “When the government taxes one person in order to give money to another, it separates individuals from the full benefits of their labor and reduces the real returns of such activity. These transfers represent the removal of property without providing a compensating benefit and are, thus, an infringement on economic freedom.”
Following Texas was South Dakota, North Dakota, Virginia, and New Hampshire.
Dean Stansel, economics professor at Florida Gulf Coast University and co-author of the study, reportedly said, “In Texas and South Dakota, high levels of economic freedom help create prosperity and economic growth for working families. The freest economies operate with minimal government interference, relying on personal choice and markets to decide what’s produced, how it’s produced and how much is produced. As government imposes restrictions on these choices, there’s less economic freedom.”
Maine, Vermont, Mississippi, New York, and Rhode Island, are the least free states, according to the report.
“The link between economic freedom and prosperity is clear – states that support low taxation, limited government and flexible labor markets see greater economic growth while states with lower levels of economic freedom see lower living standards and less economic opportunity,” study co-author Fred McMahon reportedly said.
Texas’ economic freedom has allowed every industry in the state to expand. Many, including Texas Governor Rick Perry, claim that this growth was bolstered by the state’s low taxes and reliable regulation.
Gas and oil economist Karr Ingham told Breitbart Texas that although Texas’ economy used to be largely dependent on the gas and oil industry, it is more diversified now. “The state economy is now a powerhouse,” he said. “It is more than just an oil and gas economy; it is an industrial economy, a tech economy, a business economy, a manufacturing economy… Texas has a lot going for it.”
Follow Kristin Tate on Twitter @KristinBTate
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