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Gov. Terry Branstad, (R-Iowa), on efforts to reach a deal to avoid the fiscal cliff.
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At some what we have a governor who says his state is taken the right action to prevent falling off its own fiscal cliff.
The president can learn a lot from those -- -- joining us now in a Fox Business exclusive this Iowa governor Terry Branstad and and Terry governor let us just explain that to our viewers and that is that.
You're actually deal with the democratic legislature and you've really managed to get things done.
You could really show by example how would you done -- what do you think that the inside the beltway crowd is doing wrong here.
Well they need to get past the politics and quit the political posturing.
And provide leadership -- when I was elected governor again two years ago.
I came back because of people of Iowa said we need your experience and leadership to get our fiscal house in order.
And we cut the size and cost of government.
And we focused on jobs.
And ways that we can make Iowa more competitive we put together a two year budget with a five year projection.
I insisted it would stop the bad budgeting practices of using one time money for ongoing expenses and it was a tough battle but we got the legislature.
With a democratic senate Republican House to pass essentially a two year budget.
And we spent only 9997%.
Of revenue even though by law we could go to 99%.
We restored the cash reserve and economic emergency account the state of I was in the strongest fiscal position it's been ever.
I'm really proud what we've accomplished I'm looking forward to making more progress this year reducing our property taxes for.
All of a property tax classes and our state well you've made great progress so as to have the citizens of Ohio of of Wisconsin dimensional lot of individual states that have done pretty well in getting its account Indiana Michigan Indiana Michigan but that's stands in stark contrast to what's happening inside the beltway even one of your own -- market who is the United States senator from the great state of Iowa has said that it would be better to go off the fiscal cliff.
Then not to have a a rise in tax rates he says quote and I'm quoting him here no deal.
Is better than a bad deal and a bad deal from his perspective is not letting tax rates go up.
What do you make a -- he's -- -- -- -- Well.
Unfortunately we've got too much partisanship in -- in DC the American people want.
The leaders both the president and the congress to come together make the tough decisions is gonna take both its gonna take more revenue but it's also gonna take.
Fundamental reform of spending you cannot spend a billion dollars -- -- taking in every year.
Or you're headed for fiscal -- and with the amount of baby boomers are going to be retiring over the next several years.
Other gonna have to deal with things like.
Medicare Medicaid.
And Social Security if we're gonna resolve the same for the long term.
And frankly Iowa farmers and small businesses they're gonna get hit -- huge increases in capital gains.
And in death taxes and that's gonna be a real damaging blow to our state which is doing well.
Well look let's talk about the the sort of double whammy that you guys face -- -- you're only one of six states where it's -- it's an interesting situation interest in her painful.
Depending on how you look at it that allow residents to deduct federal taxes.
From their income not when filing state tax returns so how would potential tax hikes affect your state.
Well first of all we plan for this we -- this this was in the law.
And consequently we've got enough revenue that if indeed the tax rates go up.
I would taxes will go down I would taxpayers will benefit the state will get less revenue but we can afford to be aware that because we've been fiscally responsible.
Governor Terry brands said the folks and I -- doing all right let's hope the Fed's listen to them thank you governor appreciate -- -- thank you so much.
You -- thank you wish she could get.
