FIRST ON FOX — 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."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.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. CORPORATE AMERICA IS ON THE MOVE, AND THESE RED STATES ARE CASHING INTreasury Secretary Scott Bessent said some Gulf states "have been very fulsome and come forward and given us the details and allowed us to freeze [Iran's] assets" after the regime its Gulf neighbors.(Matt Rourke/AP)Chevron, Tesla, 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."Here in Texas, meanwhile, the contrast is so striking that it begins to feel like a tale of two states," Bessent said.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. THE RED-STATE WINNERS IN THE CLIMB TO BECOME AMERICA’S NEXT ECONOMIC POWERHOUSECalifornia Gov.Gavin Newsom speaks during a rally in Houston, Texas, on Nov.
8, 2025.(Brandon Bell/Getty Images)During the meeting on Friday, Bessent also highlighted the importance of energy policy as a cornerstone of President Donald Trump’s economic policies."The AI race may be accelerated by the elegance ...