Governor Perry told the conservative leaning Texas Public Policy Foundation today that in a competition between Texas and California, there is no doubt that the Lone Star State comes out on top.


  1200 WOAI news reports the TPPF kicked off its 'Competition and the States: California vs. Texas,' where the country's two largest states are comparing taxes, policies, and rates of growth.


  "Texas vs. California is a pivotal contract in a debate that really speaks to our nation's future," Perry told the group.  "Just as we have in recent years, Texas continues to outperform California in terms of employment rate, growth in output, and gross domestic product.  We also continue to dominate in terms of population shift, which is about as clear a sign of quality of life as you can find.  That’s because it's the answer to the most basic question: where would you rather life."


  Perry was joined by supply side economist Dr. Arthur Laffer, who told the group that the difference between California and Texas is 'stark.'


  "Texas has a low tax, business friendly environment, California has punitively high tax rates and seems to put up every possible barrier to entry for business," he said.


  Laffer called Texas 'the model of low taxes, smart and predictable regulations and fair courts.'


  Laffer agreed that the exodus of Californians for Texas disproves the basic California argument, that even though taxes are higher there, they pay for a much more desirable quality of life, financed better schools and a better infrastructure.


  "Texas has had a net adjusted gross income gain of $14.7 billion over the past six years, while California lost $19.2 billion," Perry said.  "Additionally, California has the highest percentage of its population on welfare, while Texas has the fourth lowest.  Texas also has significantly less poverty, and has maintained a significantly lower unemployment rate."