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Art Laffer on Saving California

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  • Description

    Former Reagan economic advisor Art Laffer discusses how to revive the Golden State.

  • Duration 4:35
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-- -- -- California's financial problems have been a theme on this program felt all the time that we've been only yes.

Joining us now is off -- -- his new book is called eureka how to fix California.

Are always a pleasure to have you with this Thanksgiving hearing you very much -- you know -- being here -- the -- -- -- We don't have time for you to tell us how we can fix California but I want you to listen to my argument.

You cannot tour -- California.

California's -- let you fix California.

The voters of California will always vote themselves more taxes more people will leave that have more social services it to go on and on on.

Do you algorithmic you cannot fix it.

For the last thirty years you've been completely correct Stewart I mean totally correct but you know we get -- prop thirteen the world did change back then.

We fixed it for a 1512.

Year period.

I think it's possible with the same governor we had back then.

Jerry Brown is possible he could change it.

And after this next election we'll see -- he comes back of that same type a great governor he was back in 1978 will we got prop thirteen the government of our -- tax II index I had.

My Europe optimism.

Governor Brown president wants to build a 100 billion dollar bullet train.

He's all in favor of these news that did these new who -- Green it regulations which are forcing of the cost of energy forcing people out of the state.

He's never met a -- didn't like he's in favor of a big new tax on the ballot in November and you think he's got a -- around and become to it than you.

Guy who's gonna save California.

Come -- arts.

All all I can tell you is back at nineteen -- The eight with him as governor.

He made it so that we could pass prop thirteen.

He found extra funds that would allow -- sting to be taken away from prop thirteen he forced assessments to be go up before the election.

He then did -- a pension program to make prop thirteen work we index the personal income tax we got the spending limits.

All under Jerry brown and you know as Oakland mayor he did a great job there.

If you look at when he ran for president of the United States Stewart I mean seriously the only serious American presidential candidate since 1913.

To run on getting rid of the progressive income tax in America which is the Bane of our existence -- the worst thing that could happen to Jerry.

Is the only one who ran on that and almost beat Bill Clinton.

In the primary do you really think they'll -- -- judge Paul Browne will come Chung not just doesn't -- you don't want eight AD.

We are incredulous mr.

Lockhart to pick -- well I -- -- you know if if not Jerry Brown who.

I mean you know he gets the new legislature coming in a lot of will be term limited -- in the new kid on the block.

He doesn't have all that much power as you probably know there.

Independent commissions to do everything in California it's it's a very roses erotic state well how about how about -- what we we don't have time to see Governor Brown to a 180.

But supposing we got a new Republican senate Republican House and a Republican in the White House just suppose we learned.

And they sent to California we will write you all going to get a bailout we will give you money to tide you -- books boss.

You've got a totally reform you'll system you've got a totally reform you'll government you've gotta reform the tax system and you go to our formal is these these regulations on -- that.

Back is that -- sorry that's possible isn't it.

I don't think it's possible because you have to get it through this -- -- same state assembly.

The same states and at the same governor -- and commissions all the legislatures all the way down.

I mean you still gotta go through California's political morass that's difficult under the best of circumstances but with the federal government as you say.

Republican house Republican senate Republican president.

Which I think is what's going to happen.

I think that would give Jerry Brown the strength to be able to do it.

My view is I think -- cooperate very well -- that type of administration.

-- I'm hoping.

By the way it I don't know I heard your articles about it but not all laugh -- -- hero well speaking from Tennessee not from California.

So I'd left California to tell you did you noted.

And move on for taxes if -- -- -- you know who what.

Who wouldn't everyone else's -- but sooner or later.

There ended up with only liabilities and then something's -- -- happen I think we can agree on that -- -- we could definitely are -- and thank -- -- always a pleasure thank you very much indeed for the --

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