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Gov. Bob McDonnell, (R-Va.), on supporting Mitt Romney and how Virginia’s government surplus is benefiting the state’s economy.
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Nineteen thank you all the government is over spending some states are actually creating surpluses rather than deficits.
Our next guest is governor the state of Virginia has set an example for other states and indeed the federal government next door.
Leaving Virginia from deficit spending to two straight years of budget surpluses were pleased to welcome governor.
Bob McDonnell governor good to have you what -- Let let me get first your reaction to what congresswoman Diane black said the votes still at least in her judgment.
I'm not certain on the payroll tax holiday do you think this is an appropriate.
A holiday for the federal government to take this year.
It's something they've been talking about for a while I think given the fiscal stress on average American family it'll be something that.
Will be welcome of course because that money is going to entitlement funding.
What it does of course in the long run is actually.
Crates of additional fiscal problems -- -- the road for those.
But for those entitlement funds but -- in the short run I think as long as.
There's other reforms.
Enacted to make those programs solvent I think a little tax relief is certainly certainly in order.
Well you know something about short term exigencies and responses.
To them.
Our you've gone from a deficit that you inherited through two straight years of surpluses in Virginia.
You've done so by cutting spending.
-- what has been the economic impact in your state of those cuts in spending what has been the the impact.
But -- very possibly we're gonna we're trying to do things differently than the federal government that.
Over spends that that over borrows who doesn't have the leadership -- the White House they have the fiscal discipline to.
Set priorities and and that's what we collectively decided to do on a bipartisan basis and kill in the deficits.
And -- as you pointed out that nearly a billion dollars of surplus is the last two years.
And I think itself in so many ways were down to six point 2% unemployment rate the lowest in the southeast.
Now we've got people interest that in starting businesses here in Virginia and it's been a really had net positive force because people think we've got our fiscal house in order.
We're now been able to invest that surplus in core functions of government like transportation higher read and not a retirement system -- And in Virginia is it a template for the rest of the country you enjoy some extraordinary advantages you're certainly role where.
Are being next to the nation's capital which is a bit of a boom industry these days.
With a number of military bases you also technology.
Senators -- and Virginia.
That not all states can claim your thoughts.
Well that's certainly an asset but.
That doesn't just mean by by luck you're gonna have these got a surpluses and we've made tough calls.
And with -- -- business environment that second to none this year aboard CNBC I skiddie CNBC and pulling out.
Ranking -- number one place in American at a business Ford's number two and and that's allowed us to tell Virginia -- that said job craters.
Come to our -- so yeah where is it does natural advantage but we're dreading the right kind of business environment where people wanna grow it and honestly that's why these revenues are starting to increase a little over 4%.
Now for the fiscal year because sale -- income tax revenues and sales tax revenues are.
-- above markedly this year because economic activities -- it's been a good thing.
Are responsible government does help -- that would be your judgment absolutely.
A lot of time turning through to Mitt Romney whom you're supporting for president he's having a lot of trouble.
Our right now in the polls he is is running ahead in Arizona behind -- Michigan behind in Ohio.
But those are the two upcoming states that were concerned about obviously in or listening on what is your counsel to our governor Romney.
It's win baby win and he showed big -- that.
India north phase the south -- in -- rocky mountain in the central part of the country.
But you know nobody's said this was gonna be a -- -- I think he's the best candidate at the right time when you look at the horrible lack of leadership in Washington.
Not getting things done fifteen trillion in debt 8% unemployment rate for 36 months.
Well this is unacceptable so we need somebody like Mitt Romney who cut taxes nineteen times.
And now Massachusetts who balanced the budget three -- -- a three billion dollar -- -- that that it cut.
A later in the Olympics and has got us how to govern and that's what we need so I think it -- today he's got the best appealed independent voters and it's going to be up -- along all but I think Mitt Romney wins.
Governor -- Bob good to have you with us we appreciate our live at thanks present you know thank you.
