Chuck DeVore on why Texas attracts Fortune 500 companies
Chuck DeVore, a former member of the California Assembly, details the migration of business from California to Texas, emphasizing that low taxes and regulations are key attractions for Fortune 500 companies. He contrasts Texas’ pro-business attitude with California’s challenging environmental laws and litigation climate, citing delayed infrastructure projects such as high-speed rail.
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FIRST ON FOX – Treasury Secretary Scott Bessent highlighted the stark contrast he sees emerging between Texas and California and the ‘issue of two states’ that exists between red and green states.
“In California, I saw firsthand what years of failed governance look like: an anti-ambitious tax system. A regulatory environment that stifles business. An economic environment that doesn’t care about results,” he said during a meeting of the Petroleum Club of Houston on Friday in words shared exclusively with Fox News Digital.
California has seen the highest number of defections in recent years, with many businesses and wealthy individuals citing state laws and the tax regime as reasons for their exit.
CORPORATE AMERICA IS GOING ON, AND THESE PURPLE COUNTRIES ARE GETTING MONEY
Treasury Secretary Scott Bessent said other Gulf states “have been very strong and come forward and give us information and allow us to freeze. [Iran’s] property” behind the kingdom’s Gulf neighbors. (Matt Rourke/AP)
Chevron, Tesla, Charles Schwab and Hewlett Packard Enterprise, to name a few, have all left their California headquarters and moved to Texas. IRS immigration data also shows that the Golden State is hemorrhaging high-income taxpayers, putting its finances at risk.
“Here in Texas, on the other hand, the difference is so dramatic that it starts to feel like a two-state story,” Bessent said.
And it’s true that the Lone Star State’s business-friendly policies and low taxes have attracted many American families and businesses to move from other states to Texas.
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California Gov. Gavin Newsom speaks during a rally in Houston, Texas, on Nov. 8, 2025. (Brandon Bell/Getty Images)
At Friday’s meeting, Bessent also highlighted the importance of energy policy as a cornerstone of President Donald Trump’s economic policies.
“The AI race can be accelerated by the beauty of our code, but it will be won by the abundance of our power,” he said. “In addition to strengthening the economy, energy abundance also protects the nation. Economic security is national security.”
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He said Texas is leading that growth.
Texas has rapidly increased its energy production to meet growing demand, fueled by the construction of new data centers, recently surpassing California as the most active solar state and hitting record-breaking levels in both crude oil production and low-carbon electricity production.
As companies move to Republican-led states, greenfield leaders are facing growing scrutiny that high taxes and regulations are driving away employers and weakening economic growth. (Mark Felix/Bloomberg/Getty Images)
“Texas has become America’s center of gravity because it fosters conditions for families and businesses to thrive,” Bessent continued.
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The data shows that Texas has seen great success in attracting businesses and taxpayers to the state.
Of the 725 companies that moved their headquarters between 2018 and 2025, according to the CBRE report, 230 of them moved to Houston, Dallas and Austin alone. IRS immigration data also shows that the Lone Star state saw a net increase of 56,000 tax filers between 2022 and 2023.
