Texas - #21 OVERALL
https://www.freedominthe50states.org/overall/texas

ANALYSIS

Texas talks a good game about freedom but could stand to deliver a more freedom-oriented policy regime. It comes in only at 21st in this edition, rescued largely by its top-10 economic freedom score, and it has never been higher than 15th overall. The problem is that Texas has always been a less free state for personal freedom and now is the second-worst state on that margin despite some absolute improvement over time. Its economic freedom is likely one reason it hasn’t slipped out of the top half states and why it’s been such a job-producing and population-attracting machine. It does especially well on fiscal policy where it ranks 12th. It is also a solidly above-average state on regulatory policy, but not as good as one might expect at 22nd.

Texas’s fiscal policy is very good. It is a fiscally decentralized state, with local taxes at about 4.9 percent of adjusted personal income, above the national average, and state taxes at about 3.5 percent of income, quite far below the national average of 5.7 percent. However, Texans have little choice of local government, with only 0.39 jurisdictions per 100 square miles. State and local debt is above average at 21.2 percent of income, with the biggest problem being local debt burdens, but the overall debt burden has come down noticeably since FY 2010. Public employment has fallen to significantly below average, at 10.7 percent of private employment, and government share of GDP is only 9.7 percent, below the national average of 10.3 percent. If Texas could get a handle on local taxes and debt, it could improve on its top-10 economic freedom score and become an even greater economic powerhouse.

Texas’s land-use freedom keeps housing abundant and affordable, but it has slipped a bit lately. The state has a renewable portfolio standard, but it has not been raised in years. Texas is our top state for labor-market freedom. Workers’ compensation coverage is optional for employers; most employees are covered, but not all. The state has a right-to-work law, no minimum wage, and a federally consistent anti-discrimination law. Cable and telecommunications have been liberalized. However, health insurance mandates are way above average, and the gatekeeper model of managed care has been banned. The individual health insurance mandate was removed federally in 2019 and was not replaced at the state level. The extent of occupational licensing is high, but the state enacted a sunrise review requirement for new licensure proposals in 2013. Time will tell whether it is at all effective. Nurse practitioners enjoy no freedom of independent practice. Texas does not have many cronyist entry and price regulations, but it does have a price-gouging law, and Tesla’s direct sales model is still illegal. Texas suffered a marked deterioration in homeowner’s insurance regulation in 2015, resulting in a large residual market, but the state reformed it back to file and use in 2018. The civil liability system used to be terrible, but now it is merely below average. The state abolished joint and several liability in 2003, but it could do more to cap punitive damages and end political parties’ role in judicial elections.

Personal freedom is abysmally low in Texas, especially given how we operationalize it. -- excerpt, rest at link above --

Quote: Isailedaway wrote in post #2

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Excerpt: Regulatory: Pass a law allowing direct-to-consumer auto sales so that Texans can more easily take advantage of the new Tesla auto plant being built in Austin.

Really? Is there a state law that does not allow this to happen?

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