Principles. Texas businesses compete in a national and global marketplace. It is critical that the cost of doing business in Texas be low to encourage new investment; however, Texas’ heavy reliance on sales and property taxes makes Texas a relatively high tax state for business. Consequently, it is entirely reasonable that the state make judicious use of economic incentives that prove to yield a positive return, be it economic, fiscal, or intangible (such as showcasing Texas). Tax and economic incentives can be an effective and necessary tool to attract investment and stimulate job growth in Texas.