alt.hn

6/5/2026 at 9:41:40 PM

Texas is America Inc's new centre of gravity

 https://economist.com/business/2026/05/31/texas-is-america-incs-new-centre-of-gravity

by andsoitis

6/6/2026 at 2:33:41 AM

About half of America’s off-grid energy projects are in Texas. The OpenAI/Oracle data center in Shackelford County is running on its own gas plant. That’s the real Texas advantage.

It’s not just taxes or cheap power. It’s that you can put the power plant and the inference cluster in the same operating loop to avoid waiting years in an interconnection queue.

by jnakano89

6/6/2026 at 1:35:28 PM

Those companies building AI datacenters in Texas are still mostly hiring for higher-paid office positions (like SWE) in the Bay Area, Seattle, NYC, etc because that's where the leadership still is. Before this, it was the same, California had almost 0 datacenters while the rest were in like SC, OR, TX, NV, IA. You could argue CA should've been more receptive to datacenters because they bring decent jobs, but I don't see a reason to focus so much on them.

by frollogaston

6/6/2026 at 3:33:24 AM

California is an incredible example of how to drop the ball when running a powerful state. Texas is of course on the other end of the spectrum in terms of regulation and being business-friendly. Something more in the middle of the two is obviously ideal.

by Rover222

6/6/2026 at 7:09:10 AM

It is astounding how many of CA's problems stem from across the board downzoning post 1960s.

by asdff

6/6/2026 at 3:00:28 PM

I’ve heard this a lot and am curious to learn why this is the case. As an employee at firms in SoCal then NorCal, I only enjoyed my living and work time in CA. Perhaps, I would see differently as a business owner? Curious to become an informed citizen and learn what isn’t working in CA

by curiouslearner1

6/6/2026 at 7:16:06 AM

California's problems are going to magnify as time goes on. The state budget has always been a fiction they could paper over because the state had high growth. As growth slows it becomes harder and harder to provide services using debt.

by laughing_man

6/6/2026 at 2:54:43 AM

> In the early 2020s Texas was luring in remote workers

And not a single one of the people I know that moved there want to still live there. ymmv I guess

by cactacea

6/6/2026 at 11:13:46 AM

Oddly enough, I don't know too many people who moved to Austin, but they're all still there AFAIK.

by mathgeek

6/6/2026 at 3:02:31 AM

Please let the zillions of people still fogging into my hometown (an Austin suburb) know!

by kyouens

6/6/2026 at 3:35:07 AM

people move to Texas thinking it has low taxes. It doesn't. Washington state has a much lower tax burden.

For a normal earner, California has a lower tax burden than Texas. It is surprisingly insanely high tax.

Of course California also has a much larger safety net than Texas. So for most working people it's a no brainer as to which state is better

by anon291

6/6/2026 at 2:42:35 PM

Property taxes are relatively high in Texas but houses are so much cheaper. Also, the cost of living in Texas is far lower than in CA. From an economic perspective, living in Texas is a no brainer.

by malshe

6/6/2026 at 4:09:39 PM

Houses are cheaper because there is no appreciation.

Ca appreciation is high and the appreciation more than covers the tax though

by anon291

6/6/2026 at 1:29:00 PM

Even when you look at those rankings that take property tax into consideration, CA is way higher than TX. And the people who see a dime from the CA safety net aren't the ones paying property tax.

by frollogaston

6/6/2026 at 4:08:25 PM

Don't take into account the higher appreciation in California .

I disagree about the safety net. I was a high earning California resident (mid six) and when I was laid off, I got my unemployment and my kids got free Medicaid that ended up paying out quite a bit. The safety net is pretty nice.

Since that payout from insurance, my total tax burden in California was actually negative. Had I been in a state like Texas I would have paid less in tax but more overall.

by anon291

6/6/2026 at 4:31:06 AM

As someone who lives in California and pays state taxes, how would Texas have a higher tax burden if it doesn't charge state tax?

by Synthetic7346

6/6/2026 at 5:00:19 AM

Texas charges quite high property taxes compared to many other states

by piperswe

6/6/2026 at 5:21:43 AM

True, but in my experience grandparent is a bit full of it. Yes property taxes are higher, but what op leaves out is that the values of homes are like for like 2-3x more expensive in California. So in the end I would probably pay around the same tax for a like for like home in California as Texas, simply because of the value of the home. Then we must consider the state income tax of California, which is a nonzero differential to that of Texas’ state income tax

by SOLAR_FIELDS

6/6/2026 at 6:22:47 AM

My understanding is that property taxes in Texas can also grow a LOT year over year if your town gets more popular, which isn't the case in California

by Rebelgecko

6/6/2026 at 4:11:01 PM

Yes people in Texas have to move a ton because as property prices go up so do their taxes. With California, you control how much income you earn. In Texas, people moving to your neighborhood can price you out even after you've bought .

A move for a family can cost thousands. Since the higher moving rate is due to the tax system these costs ought to be counted.

by anon291

6/6/2026 at 6:03:13 AM

IIRC only New Jersey and/or Connecticutt have higher property tax rates. I know that Tennessee's are about a quarter of Texas'.

by ProllyInfamous

6/6/2026 at 3:52:05 AM

Then why are so many people moving to Texas?

by pyuser583

6/6/2026 at 3:42:15 PM

Many people are just sick of the liberal politicians and liberal extremism of CA.

by MAustriaGA

6/6/2026 at 1:30:34 PM

Because it's cheaper, partially because yes taxes are lower but also because it's just cheaper. The weather makes Texas less desirable than California, and it's almost as if they tax based on that.

by frollogaston

6/6/2026 at 4:05:45 PM

A lot end up moving back and are upset they don't get their prop13 savings. California becomes cheaper the longer you live in it. Texas doesn't

by anon291

6/6/2026 at 4:39:35 AM

What is high tax in Texas, much less insanely high? There is no income tax. Property taxes are okay-ish. It has a standard sales tax.

> Of course California also has a much larger safety net than Texas.

California alone accounts for a third of the homeless population in the U.S.

by bmitc

6/6/2026 at 1:23:20 PM

How many homeless people in California are actually from the state? Cause it seems like within CA, they move to big cities. Democrats then say that high-valued real estate is causing homelessness, and Republicans blame lack of law enforcement, but I don't see how it's either of those.

by frollogaston

6/6/2026 at 2:01:44 PM

Almost none are from out of state. 90% were living in California when they became homeless, and 65% were born in California. It doesn't even make sense as to why a homeless person would voluntarily move to California where literally everything, including food, is more expensive and housing is impossible. Plus, homeless people lack the means to easily move around. California's housing situation is the worst in the country. It even has the lowest percentage of homes actually owned by homeowners.

https://en.wikipedia.org/wiki/Homelessness_in_California

https://calmatters.org/housing/homelessness/2024/07/californ...

by bmitc

6/6/2026 at 3:45:48 PM

Not disputing any of the statistics cited, but there is one advantage of being homeless in California compared to other places: favorable weather, especially along the coast. Snow is a once-in-a-generation event outside high-elevation areas, and while it does freeze on some winter nights, it’s rarely below 30 F. There are many parts of the country where temperatures sometimes get low enough to be life-threatening for those with inadequate shelter, heating, and clothing. The coastal areas of California also typically don’t get too hot. Heat is more of an issue inland, particularly the Central Valley and the desert.

by linguae

6/6/2026 at 4:07:19 PM

Texas has high property taxes. This causes people to need to move. It also spurs construction causing prices of homes to stay flat. For the typical homeowner, the total combined appreciation of your home in CA combined with the savings from the no moving property tax once you've been there a while more than covers the California tax burden.

My colleagues and direct reports in Texas constantly have to move as their property appreciates. This alone results in excess cost that is essentially a tax on not being rich.

by anon291