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Why Move to California?

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    Former Schwarzenegger Press Secretary Aaron McLear on the financial struggles the Golden State is facing.

  • Duration 4:16
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-- now -- California Governor Brown says the State's deficit has risen to sixteen billion dollars they simply can't get they finances in order.

Business is a leading.

And -- no plan to spur economic growth in the formally Golden -- -- is the question why would anyone want to move all start a business in California.

And -- -- -- is where this is the former president prepare for Governor Schwarzenegger he joins us from Sacramento.

Can you answer that question -- what is there in California that would tend to me or anybody else to move that -- the business that and grow the business that.

-- store we'd love to have got to love that is my -- some time and again a lot of fun.

You know we still the best piece of real estate in the world okay -- gorgeous guy here -- your point is exactly right.

It's not a friendly place to do business CEO magazine recently said for the eighth straight year California's the worst state.

In the nation's do business now our economy is recovering some bright spots -- you're exactly right our government does not make it -- do business here.

Now Governor Brown house this plan.

-- social services.

Raise taxes.

If you delete full -- -- go full what do you what do you think California's gonna be in terms of deficits and its economy.

I think we'll still be in -- and here's why a year ago we said this budget was balanced five months ago the governor said it was seven billion out of whack now yesterday.

He said -- sixteen billion out of whack less than a year after being enacted.

And the reason is it's it's predicated on the taxes of of of rich folks on capital gains taxes which he himself has said.

Are the most of -- volatile tax -- things right about that.

-- they're always out of whack and his current plan his tax hike -- and a half billion dollars that this fall will also be.

On high income earners and so he's in the exact same thing he's it was a bad idea that got us in this missed because of its same old same old I'm just wondering where is the crunch time and because you really can't go long and decade after decade doing this.

At some point a crunch case I want -- -- form the crunch takes and when does it -- can you tell us.

But there who have been doing is basically patching this over word just as guilty -- Schwarzenegger administration.

How we are unable to convince the legislature to make more responsible moves to balance the budget that's exactly what's happened now.

The problems we have a legislature for politicians it just wanna spend.

And raise more money back the politicians right now but hey I don't look at him -- I mean I would been saying this for years you and I've been on this program for years -- that just wanna keep on spending and tax I don't that.

But where do what you gotta look at what it and you'll notice that I don't know until things get better on the natural you know I think they're hoping to the tech sectors doing well.

A lot of sectors are doing well this probably new tech bubble.

And they're hoping what always happens in California is that -- on the natural gets better and in in really.

The papers over the underlying product we have there's a tax hike right now for June that would would actually grow government where actually create new programs -- so people here that politicians you're just wanna spend spend spend.

And never responsibly fix the problems.

OK all you bottom line dying for and hoping for an Obama administration bailout if there is a second I know you don't like -- subjects.

But how else he had to get out of -- mess I mean are you gonna do they'll lose.

If if he's given it will take -- I'm sure but I don't think we're expecting that at all no not you know I got about 60%.

For President Obama.

And -- hoping for a reward which is in a second to on the get bailed out that's the equation is.

Well that's not the equation that the governor put out yesterday out and tell -- -- -- California's -- but even -- you've voted left consistently.

California always votes laughed.

Sixty points will go to President Obama he would get all the Electoral College votes from California you know you know that Californians -- just saying.

It will vote for yet but please give -- a -- -- you know that's what the case you know -- -- I don't think that's I don't think about north talk about -- -- we're going to have to come on business some time to talk to some folks -- -- -- They look at or give or take you but you're exactly right by the way -- always voting -- -- that being a problem.

The issue is that the state government is bought and paid for.

By the public employee unions include the teachers' unions in the states a really good place for them that the government works for them it really doesn't work for anybody else out here you got that right Aaron McClellan thanks for joining us we'll see you again very soon I do -- thanks I think.

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