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Author Steven Siebold on the Golden State’s fiscal problems despite increased tax revenue.
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Taxes on the rich they will change the way that they use that money to change that behavior they do you know new numbers from California proving just that.
The formally Golden State's total revenues down whatnot but not down.
806 million dollars less than what they expected to bring in -- despite and -- because all of those new taxes that they put in place in early November.
By the way that revenue down 10% from what they expected to bring it.
Joining the company now is Stephen -- -- he is the all all the power rich people think very interesting.
This is -- in California with higher taxes less revenue than expected.
Do you think the same thing would happen if and when President Obama sticks on higher taxes for the rich nationally.
Of course is going to happen there's no question about it.
And we don't have a tax problem in this country not California doesn't haven't they gotten the with the federal government doesn't have a Stuart we have a spending problem here with the government has an unlimited credit card.
They keep printing money it's a spending issue if they stop spending we don't have to -- raising taxes not a tax issue and -- not gonna solve -- But want to rich people do now in California I can understand you -- move you can -- -- body you can go to Texas with a different tax structure I got it.
But if we impose higher taxes at the national level.
Not that many people are going to leave America because of a tax rate increase -- that.
Well -- you know they let a lot of -- leaving France that it probably won't let -- -- America of course they probably won't leave America.
But you know that I think first of all -- got -- we've got a state that this fact that this is a delusion that people making 250000.
Dollars a year.
Our rich this is clearly the upper middle class.
These are the people that are gonna get hurt the wealthy I mean the Mitt Romney's on the Donald trumps of the world.
They've been preparing for this for years they have a team of wealth advisors all the rich people do and -- -- they're prepared for the disabled waiting for the how to do it how to they avoid if if I know if I'm rich and I know that comes under the photos -- tax rate goes from 35 to 39% to -- highly likely find none of that in advance how to one avoided.
I I was talking my financial advisor Kevin -- out of Philadelphia to this morning just a few hours ago he was saying he's got all kinds of clients.
Transferring their businesses to their heirs to the kid's name is putting their significant assets.
In their children's names to avoid the increase that giant height.
In the estate tax and and you know and so this is one of the things they're doing they're putting money and you know tax free and tax deferred accounts.
I mean they're preparing just that's what people really need to be doing if they're not ready that's what they need to do if they have any kind of assets -- -- -- like you wrote the book it is -- what rich people think is that is that correct title what rich people think how rich people think how rich people think I'll get right.
Did they hate.
Tax rates at this level only music that kind of an emotional response as it.
Well it's clearly -- can this get Tory tax here I mean this is this is class warfare Stewart against the rich all the sudden in this country anyone who makes 250000 dollars a year or more.
Is suddenly an evil person.
And without you've got -- they what you give me the people who make 250000 dollars a year or more in this country and will start her own country in ten years that current -- -- rich in this country will be broke its way or broken and is now I do you have to know the answer this question which is.
The most rich.
Friendly country in the world.
I would say Switzerland.
Is -- tax ration of low tax rates that.
Well I think of the friendliest to the -- that's that's -- to get -- I don't know for sure.
But I can't pull my money in Switzerland now when you look at some business that you get a rich guy and America he puts his money into a Swiss bank accounts.
That's passed that now be declare add to the IRS the IRS has to -- know that you've got back money that.
And added it's stunning income you got the pay tax on the that would that mean written that the Swiss bank account is no longer of the escape hatch that it used to be now as.
Now it's not -- mean you can keep their -- once you bring it back you're gonna -- the pay taxes and and now so it's not a sheltered apple announced all right so let's just sum it up than the rich people are avoiding these what you call -- the statutory tax rates.
Absolutely I mean and and and they're cutting spending and and here it is right in today's morning Bible.
Consumer spending wobbles here it is they're gonna stop spending which is what people should do so obviously consumer spending is 65 percentage GDP.
That goes down the other sectors RRR fumbling.
And now we're in big trouble here I think we're much more trouble than people think come January 1 -- -- -- -- we appreciate you being with us thank you very much good stuff I expect -- We --
