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Former Gov. Gray Davis, (D-Calif.), on California voters approving tax increases in an effort to balance the state’s budget.
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Well I would -- -- only former California governor Gray Davis that had this wind at his back Californians of voting.
To approve hiking taxes on themselves.
One proposition -- taxes on the wealthy.
And then another proposition but -- -- on all of us that's essentially what Californians approved there the former governor with -- right now.
As you had this what is sinister terms.
I probably what it nailed but.
-- -- I don't know which it spent too much time militia Politico this yeah you're right about that but -- -- that about I had I had salad had more broccoli.
And at different points but -- governor let me answer about what this means now.
And how much wiggle room it might give.
Legislators and Governor Brown today.
If they're open to tax hikes the -- the opponents of those tax I'd say we'll be careful what you wish for because.
Did the propensity to cut spending.
Is it nearly is.
As profound as there at the zeal to raise taxes and that you've left.
Of wacky genie out of the bottle.
You know I think the governor made very clear where he was coming from when he ran -- he said -- not support any tax increase.
Unless there's a voter that the the people approving it.
So whatever the legislature decide to do industries there's majority of the governor's -- insisted go on the ballot.
This is very rare for tax increase of this magnitude to passed all credit to the other.
But basically I think people were tired of the cutting we ranked 4747.
The group capita spending in education.
Tuition was going up seven attend incendiary university level.
And Californians understand the link between education and good jobs and education and being the innovation leader in in the United States so.
I think in this one case the governor was able to convince them that we had to tax ourselves.
To really maintain the apples do.
-- -- -- -- -- Cisco's Hewlett-Packard call comes all those companies staying here in California.
I mean but some of these are pretty substantial taxes went on about the twelve point 3% surcharge for the half million and over crowd I did go on -- -- but it -- debt that would.
Did not exactly be a reason for -- to stay in California I might pop over to know that I might like might I've I've moved right is there -- real genuine threat.
You know I think.
I think that's a good point.
And I believe some people will move.
But other people who will come back.
And aid -- I think what Jerry Brown was able to communicate and again he deserves all the credit for this -- a lot of the pundits said this is an issue was dead and buried a month ago.
He was able to convince people that the past to a better life the path to better jobs.
Was too.
Invest in education and we had basically done the opposite just cut cut and cut for what I did not enough he -- does it cut enough that I -- opens a door to wholesale tax agrees they got -- Hello -- I'm sure many hope you're right I'm not on the right and the left but I do either wrapped I hear from a lot of folks who were against this that this tax hike these propositions is that.
They're they're being submitted before serious cuts were really done I mean -- things had been cut but not nearly to the degree they should.
And that that was would -- bothered them that dead.
This now gives those who want to cut spending again.
-- halts halts that and and it's a license -- -- again.
Well this is -- I think there's some truth to that.
But keep in mind when the governor took office -- 126 billion dollar deficit he big cut debt.
Toll to -- down to sixty billion dollars.
Couple more cuts and six million dollars -- -- revenue we're not back -- we were.
For five years ago were probably 95 -- six -- 7% but at least California gonna start investing again.
And not cutting away.
Cutting got -- the -- -- trust me we had done.
Let me ask about lessons for Washington as you know the president is very clear today governor on that he's not compromising.
On this revenue would assume this tech sectors to said the 250000 dollar and over crowd pay more in taxes.
In and east -- statement today.
It did you said it presented -- non negotiable he didn't quantify -- exactly how much.
The rate should be the old talk had been get it back up to 39 point 6% some maybe over analyzing thought.
That's up for negotiation house.
Much you -- that the rich folks taxes when you implemented.
But that it what do you read into that and how much flexibility he's offering on that I had a guest on earlier -- said.
There's no flexibility in his position he just wants to.
You -- the -- just like you always did.
First -- -- on delighted that pres Obama won reelection.
And I would -- -- although that was given the fragile economy.
That we have here in America but I believe.
He wants to accomplish two things one.
He he wants to generate revenue.
A good portion of which would go to pay down the debt and he wants to grow the economy and put America back to work you know in California.
The governor had twelve and a half percent unemployment when he took office it's down to ten point 2%.
We know a few more stop looking let's say it's 11% -- 81 out of eight California's now working.
You you don't have people believing the American dream if they don't have something to do so I think what the president wants to do is create growth.
-- generate additional revenue for the people of the top.
I don't know -- nobody wants -- did not of -- -- wasn't clear I know what he wants to do I'm just wondering whether.
It is what he proposed today was something that could be flexible and other words yes he wants -- -- -- -- -- I think that's a given I agree with you that's gonna happen.
But maybe the olive branch he's offering back to the olive branch that John Boehner offered him is that it might -- needn't be.
In immediate.
Return to the top rate.
It could be a combination of closing credits and allowances breaks that sort of think this is minds are British and governor so likely completely wrong.
But that he is.
May be leaving debt.
Date that the goal should be to Richard pay more what he's working on -- the details how much more and where they get the more from what do you think.
And when I -- I obviously can't speak it.
For the president but one thing I know having -- and it chief executive of California would by the way with a fifth largest economy in the world.
If you need the Republicans -- as he doesn't house represented they have to get something out of the deal.
I mean you how you treat dividends patriot capital gains the timing of a tax increase how long it.
-- even.
If -- had to extend tax increase for the wealthy the six months and for everywhere else for three years maybe it did expire assure everybody that point as a dividend or does -- deficit reduction program.
Hot as they say how you treat their capital gains when that I don't know words -- -- flexibility and all of the above.
I don't know I'm but I'm saying.
It is idol if I would dealing with it was a body who's -- had to have and they -- of another party I would realize I have to.
Give them a reason.
To help me accomplish what I want to accomplish or else I'm not gonna accomplish it and I think the president fully understands that.
I think given where it's a much since governor Tom we'll see what happens it's it's always a pleasure having -- Gray -- CDO good -- -- -- governor of the great state of.
