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Southern Company CEO Thomas Fanning on why the government needs to focus on economic growth to boost revenue.
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Well the president has always talking about math and it's just a matter of simple math things don't add up -- he's right.
The increase of expenditures.
In his administration has gone up about 25%.
From.
His predecessor.
We can put up the figure -- the full screen that we have showing that in 2008 we spent about 2983.
Trillion -- two point 98 trillion dollars.
That went up as you can see in the next -- primarily.
Because of the extra spending with the stimulus program but it didn't really slow -- it just kept up but that increased level house the president gonna get the money.
To fund his new spending it's a question that our next guest has been thinking.
And hard about -- Thomas fanning chairman CEO and president of southern company he's one of the energy giants.
In the country if not the universe.
-- good to see a thank you for coming in so.
You see the at the -- very clearly the president is increased spending.
About 500 billion dollars 50600 billion -- most that he could get by raising taxes on all of the wealthy not only getting rid of their deductions but raising their taxes is about a 110120.
Billion.
He still about 300 or 400 billion short.
-- the only way to get that -- -- cash is either by growth growing at three or 4% and if -- raise taxes you're not gonna get growth.
Or by going -- guys we have had an energy boom in this country primarily because of fracking but also because of of China growing -- importing a lot of the -- what you guys produced coal would you guys produce.
So do you expect him to try to squeeze energy companies for more money right now.
Well look -- great to be here these are awfully important issues to America right now you know in the thing that strikes me in all this conversation -- This is not a Republican issue or Democrat issue these aren't fact American issues.
We know we've got to take costs out of the economy.
We know that we're gonna be flexible on revenues but at the end of the day the only thing that will sustain this challenged.
Kind of trajectory the economy is on is to grow.
One of the big issues that we -- facing right now as an industry is this notion increasing taxes on growth capital.
You know we operate in a globally competitive.
Economy.
You know that when we think about going off the fiscal -- dividend taxes could triple.
And that would have a significantly.
Negative impact on our economy's ability to sustain growth.
-- think about you know this idea this false idea frankly.
That it won't impact anybody that makes less than 250000.
Whatever the -- as you want.
Our average age of people that own dividend paying stocks is about sixty -- -- -- their average income.
Is between seventy to 75000.
Dollars yeah they're not subject to the 250000.
Dollars but in fact.
If you -- -- -- the after tax yields of these kinds of investments that people select because of their low risk.
And they use the dividends to supplement their retirement and come.
If you reduce the after tax yield.
Stop our values drop -- -- 'cause -- seen that.
Because of all us breaking news I wanna bring it back I really wanna focus a little more specifically I -- the dividend tax some your hot about but I wanna get John whether you're gonna get squeezed.
Because I get I've I've looked in.
At a 300 to 400 billion dollar gap that the present have even after the tax increases.
And I think he's gonna go after you guys in order to get it but will be asking that question yet to.
