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S&P says Texas's economy better than the nations

S&P says Texas's economy better than the nations

POSTED: Thursday, May 5, 2011 - 4:02pm

UPDATED: Friday, May 6, 2011 - 6:15am

(AP) - Standard & Poor's gave Texas government bonds an AA+ rating on Thursday and said the state's economy will likely recover quicker than most other states.

The rating determines what interest the state pays and is just short of the top AAA rating. It tells investors that Texas has a very strong capacity to meet its financial obligations.

S&P analysts praised Texas for strong cash-management practices. But the rating agency warned that the current budget crisis and future demands to pay for public schools could create problems later.

S&P said Texas was unlikely to receive the top AAA rating because lawmakers have not addressed a structural deficit created by an underperforming business tax. The business tax was changed in 2006 and it has failed to meet expected revenue targets ever since.

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Everything in Texas is better than in the US. As to S&P rating, it's meaningless. We all saw in 2008 when the economy crashed on those S&P AAA rated states. Look at Ohio and tell a Texan it's better to raise business taxes. Texas is a great country to work and live in, the US is where you live when you're happy with what the government gives you.

That's because Texas believes in free market capitalism and the US is run by socialists who are overregulating and over taxing businesses.

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