Again, easy. Without the federal regulations, Texas unleashed would produce hundreds of thousands of jobs.
Companies who meet principled standards would be allowed to move to business friendly Texas. Without the social hand outs that currently exist, self deportation of the takers would happen. You cut off the free cheese and the takers get to work, or go elsewhere.
As far as the state getting flooded with folks moving here in droves...just have immigration laws like NZ or AUS....you have to prove to be self sufficient (wealth, business, skill) in order to move here.
Sounds like a great idea.