The energy boom and millions of new consumers have propelled revenue growth in Texas to nearly twice the national average. Yet, a Standard & Poor's report shows income inequality is putting a brake on the pace of expansion.
The report released Monday suggests the gains flowing to the top 1 percent around the U.S. come at a broader cost to society. That's because the affluent tend to save more of their income, and states such as Texas won't see much of it going toward sales tax.
Pia Orrenius with the Dallas Federal Reserve says Texas must eventually address the income equality issue that threatens to slow the state's growth rate.
A report by the Economic Analysis and Research Network shows the top 1 percent in Texas earned 26 times more than the bottom 99 percent.
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