New Tax Hikes in New Year?
Cash-strapped states seek relief
- Duration 8:04
- Date Dec 10, 2011
Cash-strapped states seek relief
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We'll get ready to ring in the new year -- new tax hikes not from Washington go from more cash strapped states New York.
And California the very latest will all of this -- -- hammer America's recovery.
Hi everybody I'm David -- and welcome to Forbes on FOX let's go win this win.
Abbas himself Steve Forbes Mike goes and yet -- younger Victoria -- mark tragic end.
Elizabeth MacDonald let's start with a boss Steve is all this state tax hiking in -- -- overall economy.
I sure it is when he put taxes on the people who create jobs and create capital to create jobs you're gonna hurt.
Thankfully in America you're still allowed to move from state to state not your business but at least with your feet.
And so you're gonna see more migration to states like Texas -- trust bootable to people who wanna get real things done you tax more people who do good things you get less good things very simple.
Rick younger is actually agreed to be here in person in New York to face off when the boss what do you think it is or more than arms laughter.
Yeah that's -- just barely.
Think it's wrong look you know it makes for great rhetoric but the simple truth is if you look at the numbers.
This has never been the case you can look at the fact that since 1980 the tax rate in the United States has been going down and you know what else has been going down.
The average annual increase in the economy it simply doesn't work out on Paper there are charts there are -- there is nothing but information to prove it.
Yeah I mean -- -- look at the what do bipartisan crowd did and they look that -- what happened in Maryland what happened in Illinois what happened in New York California.
And Marilyn Marilyn try to high taxes and -- Brett -- one -- seven.
Left the state the same stories going for California and New York instead voters in California rejected.
The same increases that Jerry Brown now wants.
And you look at new York and New York lost the upper bracket people -- and create jobs and state.
Same story for New Jersey as well what what about the overall economy marked Angie do you think it will have an effect all these states raising -- why shouldn't say only -- release.
New York and California.
Well I think look nobody likes tax increases index hit a -- is definitely have an economic impact on economic -- -- -- activity.
But 26 states or more led by last -- have big deficits you can't just cut.
To the bottom you're gonna have to raise taxes even even the patron saint of tax cutting Ronald Reagan realized that and it put through some of the largest.
Tax increases it for a president -- last when -- Only here because he knew they had to raise taxes well he also tell you sort of have to raise quite a bit of -- although -- -- I have regulator mark I think in the hole I think Steve Forbes is the patron saint of low tech talk I.
I think you know your industry -- lost everything I wanna I wanna have good third cutting my -- -- -- Victorian wedding event the.
Well -- were were really talking about to stage here but -- act asking about the larger implications here and it's this.
There's a sense that were not fixing the fundamental problems.
Instead of fixing government spending.
Looking at pension plans that are just insane everyone can agree on this practically except the people receiving those -- Instead of fixing those problems.
We're just raising taxes were just putting a band day not -- in what what Jerry Brown apparently doesn't understand is that about 1% that he wants to tax already east.
Of California's state income taxes should be 90%.
I mean you're you're living in a world of taxation without representation will.
Being Leo we'll deal with the over reliance on that 1% just a second but but Mike goes Iranian people do have the option of moving they're sick a guy named Richard better in Ohio University.
He found that from 1998 to 200711100.
People a day including Sundays and holidays by the way moved out of these high tax states to the low or no tax states like Florida or Texas that's absolutely right David and if you look at what they're calling -- the millionaire's tax in New York State.
It's really for incomes of 250000.
Dollars or more so it's not just millionaires.
Dollars for small business owner who has this company as a subchapter S corporation.
Is actually this very small business and these are actually the big job creators so you really hurting the small businesses and individuals that create -- highest percentage of jobs -- and Rick what about the over -- -- brings up a great point if you rely too heavily on this 1% when California pay.
From forty to 50% of the entire tax revenue.
You're in trouble because -- they move you've lost a lot of revenue.
Well the reality is they're not moving I live in California the only thing that makes people move it was when the service bad if you're working.
About taxes and its impact on the economy -- give you something to worry about.
If we don't pass the continuance of the payroll tax we're gonna take money out of the pockets of people who really so important but let's let's keep.
-- hot -- -- go -- -- an Illinois they lost three or 46000.
People from 95 to 2008 losing billions tens of billions of dollars in revenue.
The point is of the states have not been so the state of the art when it comes to oversight of their own fiscal.
You know just ignore and then -- I think like spending money just so lose money you know and that's.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And -- 1980 and 2007.
Before this economic crisis.
The US growth rate was about fifty to 75% higher -- -- tax -- -- -- Europe -- closed market.
Solve your problem I can solve your problem to raise -- taxes and all the places that need the money ML moved to low tax states which have no -- How about -- mathematics Steve does -- -- I moved to the great plains and the midwest why did they ask you.
Why why why why should we -- California I mean that at Texas suffered -- -- Heck let's tackle California's driving people out over -- and I know this is italiano obviously they would die battle if they could move to Michigan Victoria what about that suggested go -- -- All your you're gonna see a lot of hedge funds opening up in Jackson Hole Wyoming I guarantee -- California goes down that -- but this is allowing this beautiful this yeah I.
-- -- -- Hey I -- -- -- those are for these tax increases always talk about how they help the working families in the middle class but in fact.
The high state taxes are the ones with the middle class disappears he is the only people that live there on the wealthy that afford and hey Mack and the -- yet there's another -- -- -- get -- are now -- -- loaded and statistics here but the states with the highest taxed very often have the highest debt is that just coincidental.
Yeah that is -- that is not coincidental because you know what happens.
These bureaucrats and State Capitol sit there and they brush their teeth with this year's computer catalog -- -- consider catalog they figure out ways to quickly spend.
You're and that's what's going on -- -- -- spend there it's sort of like let's serve first and an aim later but the problem so hard that we need to pick Victorian garb.
It's not healthy tax policy.
Because that that what top 1% their income is actually remarkably volatile.
And more volatile than the income across the board in California it's twice as volatile so you're deciding to get.
A large chunk of your revenue from a segment of the population -- that when times go bad -- they actually you know you consider words suffer and debated but Steve is you're not gonna get attacked -- -- -- and so us on the bottom line is when you make it hospitable environment for people want to get things done things will get done you make it and hospitable.
It's very sad to see Governor Cuomo in New York after a few months he's thrown in the towel.
He should get lessons from Chris Christie I think Chris would be very happy to give lessons lower the burden.
You have make life a lot easier worry if you take it lets you look good take a look at that President Bush read my let's remember -- -- event.