Capitalism Thrives in Texas
Capitalism, like Texas itself, is always on the move. Businesses follow opportunity. Currently, that opportunity is in Texas.
A new stock exchange, the Texas Stock Exchange (TXSE), will launch in 2026 in Dallas. At the same time, the New York Stock Exchange (NYSE) is moving its Chicago operation to Dallas as well.
Apple, the world’s largest company, announced in February they plan on opening a new 250,000-square-foot artificial intelligence server manufacturing facility in Houston.
Why Do Businesses Choose Texas?
Texas makes commerce easy. With no state income tax, lower business taxes, and fewer financial burdens, companies find it easier to thrive here. A business-friendly environment means less red tape and more room to grow. Add in a strong workforce from top-tier universities and trade schools, and it’s no wonder why major corporations choose Texas over other states. The economy is already booming, home to some of the biggest companies in the world, with more eager to join the mix. State leaders prioritize policies encouraging growth and job creation, reinforcing the cycle of success.
It’s no coincidence that companies like Oracle, Charles Schwab, and Hewlett Packard have already packed their bags and moved in. Other large businesses making significant investments in Texas in the last five years include Caterpillar, KFC, Chevron, Tesla, Google, SpaceX, Amazon, and most recently Realtor.com
Even financial firms, once loyal to Delaware and California, are shifting their headquarters to Texas because the numbers just make sense. When businesses see an opportunity to grow and keep more profits, they take it. And Texas is rolling out the welcome mat.
Why Does Texas Benefit?
More companies mean more jobs, not just in big cities but across the state. With new workers and industries setting up shop, the economy grows stronger and more diverse, moving beyond the traditional reliance on energy and agriculture. Higher wages and increased spending fuel local economies, strengthening small businesses and attracting even more investment.
Tax revenues also see a boost. Since Texas doesn’t rely on an income tax, it makes up for it through business taxes, property taxes, and sales tax. The more companies that move in, the more revenue flows into the state, funding better roads, schools, and public services. More businesses bring more competition for workers, propelling wages and improving job quality. The cycle benefits everyone.
Why Do Rural Texans Benefit?
Some might wonder what this corporate movement means for small communities. The benefits are not confined to the city limits.
Infrastructure benefits. Economic growth leads to well-maintained highways and better internet service, both of which could benefit rural communities. Schools and hospitals may also see more funding, ensuring that even small-town residents have access to better education and healthcare.
Small communities benefit from recapture, also known as the “Robin Hood” plan. This system redistributes property tax revenues to help equalize education funding across Texas. Over the past decade, approximately $1.8 billion has been redirected from property-wealthy school districts to lower-tax-base districts, often in rural areas.
Additionally, the Texas Senate recently passed a proposal to increase teacher salaries. Public school teachers with three or more years of experience would receive a $2,500 raise, while those with five or more years would see a $5,500 increase. Notably, teachers in small districts (fewer than 5,000 students) would receive even larger raises—$5,000 for three years of experience and $10,000 for five years.
As businesses boom, small towns benefit in other ways. More people moving to Texas drives housing demand, leading to new home construction and rising property values. Small businesses thrive when people have more money to spend, creating a stronger local economy. Whether it’s a family-owned restaurant in Cuero or Gonzales, a farm supply store in Goliad, or a local contractor in Victoria, the ripple effects of business growth in Texas reach far beyond the city centers.
Keeping Texas on Top
At the end of the day, companies go where they can grow and succeed. Texas is the best place for that.
If the state continues this path, businesses will keep coming, and the benefits will keep flowing. Texas is winning, and that’s good news for all of us.
Joe Olive is a 10-year Air Force veteran who currently works as a Financial Advisor for the Sather Financial Group, a fee-only strategic planning and investment management firm. He holds a master’s degree from Columbia University.