<p><strong>FIRST ON FOX — </strong>Treasury Secretary Scott Bessent highlighted the stark difference he sees emerging between Texas and California as well as the "tale of two states" cropping up between red and blue jurisdictions.</p><p>"In California, I saw firsthand what years of failed governance looks like: a tax system that is hostile to ambition. A regulatory state that smothers enterprise. An economic climate indifferent to consequence," he said during a meeting at the Petroleum Club of Houston on Friday in remarks shared exclusively with Fox News Digital.</p><p>California has seen a number of high-profile defections in recent years, with many businesses and wealthy individuals citing the state’s regulations and taxation regime as the reasons for their exit. </p><p><a href="https://www.foxnews.com/politics/red-states-keep-winning-over-corporations-fleeing-blue-strongholds-what-know" target="_blank" rel="noopener"><strong>CORPORATE AMERICA IS ON THE MOVE, AND THESE RED STATES ARE CASHING IN</strong></a></p><p>Chevron, <a href="https://www.foxnews.com/category/auto/make/tesla" target="_blank" rel="noopener">Tesla</a>, Charles Schwab and Hewlett Packard Enterprise, to name a few, have all abandoned their California headquarters and shifted operations to Texas. IRS migration data also shows that the Golden State is hemorrhaging high-earning taxpayers, imperiling its finances.</p><p>"Here in Texas, meanwhile, the contrast is so striking that it begins to feel like a tale of two states," Bessent said.</p><p>And it's true that the Lone Star State's business-friendly policies and lower taxes have attracted more American families and businesses to move from other states to Texas. </p><p><a href="https://www.foxnews.com/politics/red-state-winners-climb-become-americas-next-economic-powerhouse" target="_blank" rel="noopener"><strong><u>THE RED-STATE WINNERS IN THE CLIMB TO BECOME AMERICA’S NEXT ECONOMIC POWERHOUSE</u></strong></a></p><p>During the meeting on Friday, Bessent also highlighted the importance of energy policy as a cornerstone of President <a href="https://www.foxnews.com/category/person/donald-trump" target="_blank" rel="noopener">Donald Trump</a>’s economic policies.</p><p>"The AI race may be accelerated by the elegance of our code, but it will be won by the abundance of our energy," he said. "More than strengthening an economy, <a href="https://www.foxnews.com/opinion/the-simple-solution-to-the-californication-american-energy-policy" target="_blank" rel="noopener">energy abundance</a> also secures a nation. Economic security is national security."</p><p><a href="https://www.foxnews.com/opinion/red-states-ones-going-green-winning-clean-energy-race" target="_blank" rel="noopener"><strong>RED STATES ARE THE ONES GOING GREEN AND WINNING THE CLEAN ENERGY RACE</strong></a></p><p>He said that Texas is spearheading that growth.</p><p>Texas has rapidly <a href="https://www.foxnews.com/politics/texas-isnt-just-growing-its-economy-getting-richer-per-resident" target="_blank" rel="noopener">expanded its energy production</a> to meet booming demand, partially spurred by the construction of new data centers, recently surpassing California as the state with the most utility-scale solar capacity and hitting record-breaking levels for both crude oil production and low-carbon electricity generation.</p><p>"Texas has become America’s center of gravity because it is fostering the conditions for families and businesses to flourish," Bessent went on.</p><p>Data indicates that Texas has seen considerable success in attracting businesses and taxpayers to the state. </p><p>Of the 725 companies that relocated headquarters between 2018 and 2025, per a CBRE report, 230 of them moved to Houston, Dallas and <a href="https://www.foxnews.com/category/us/austin" target="_blank" rel="noopener">Austin</a> alone. IRS migration data also shows that the Lone Star state saw a net increase of 56,000 tax filers between 2022 and 2023.</p>
