Question

Identify an underlying reason that has caused Texas to institute policies that are considered to be pro-business.

A. The corporate income tax rate in Texas is 3 percent, which is the lowest among all states in the country.

B. The political culture of Texas is based on individualistic liberalism rather than individualistic conservatism, which results in a business environment that encourages entrepreneurship.

C. Texas relies on income tax rather than property tax, and the rate of income tax is very low.

D. Texas is very conservative compared to the rest of the country, and conservatives tend to be associated with policies that favor business owners.

Answer 1

Option D - Texas is very conservative compared to the rest of the country, and conservatives tend to be associated with policies that favor business owners.

Texas is a culturally conservative state which advocates the least government interference. That includes lower government regulations and lower taxes The income tax rate is nil in the state but other taxes such as sales tax and property tax are higher in the state. However, the conservative ideology which is considered as pro-business is the reason the state has such policies.
The conservative ideology is capitalist and it opposes socialist policies such as wealth distribution or welfare programs.
The cornerstone of the policy is that each individual is responsible for his own fate and if he achieves wealth then he deserves it.
Any government moves such as taxing rich is viewed as an intervention that will not reward the true efforts.