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Money power panel has all the answer is David Porter.
Easy managing partner -- -- financial services -- clear was a Press Secretary for California Governor Arnold Schwarzenegger.
A jury wedeman is the chief economist at Oppenheimer Funds thanks to all of you for joining us.
And -- let me start with you.
What is the response like our our people synthesizing with bill I mean do they -- -- burn him at the state because.
Everybody in California loves big government and loves to pay their taxes and so he's just a traitor and a rotten guy what's the response like.
-- you look at the voting results I think people do like I taxes that you put big government here.
I wasn't just the united November.
That that has a about a fifty billion dollar tax hike across the state the Governor Brown.
Up before but also scores of local tax hikes went forward as well so.
How the voters like the higher taxes that like bigger government.
-- exactly right it's the -- more a rich folks are fleeing the state the less money is gonna be -- it's not just rich folks -- Melissa I mean it's everybody here we have the highest sales.
The highest income tax in the country it's gonna -- -- effect.
It jury group that I mean -- Arab point of diminishing returns it seems like specially find him you know and -- he says he on that last dollar he's getting tax 62%.
Still like well if you also have to appear agent and whoever else.
Why -- those last two tournaments you -- Yeah I think that.
Works for somebody like Phil Mickelson who couldn't make his money where every lives he doesn't -- he's not grounded to a business it's located -- -- rest of us don't have that kind of option.
So you know it's it's you know I think it's not up -- a point that matters if I can say generally don't play one more turn in the north.
I can keep I can live anyplace and you get my private jet the -- over the next tournament -- but for most of -- that's just not an option.
People have more control than you think I mean did you know I'm now a lot of people say Wall Street traders can't be anywhere -- Well that's -- -- could you see a lot of people move to Connecticut and open up shop there and we we have more control -- we -- you what about your clients what do they say the U.
-- our clients -- some.
Planning method so they wanna -- expectation.
That the tax rate will be a certain amount and they don't wanna be giving over after the government.
So the opportunity that they want us to ground earn as much money as they can without having to be restricted and give up as you mentioned about -- -- He's seem like a scramble here at act as taxes go up that people look Grammy Award what do you have control of what can -- do well there's different types of investments which can limit their tax exposure.
Number one in many people also may have give consideration to moving.
To more of a tax free state where they don't -- paid state income taxes.
I mean I think that that's one thing that we have seen consistently since this election as bad as federal taxes have gone up.
You've seen some Smart governors jump into the fold in say.
This is my chance to attract business and to attract some wealthy individuals.
I'm gonna put the push on to get rid of a corporate tax -- personal income tax and -- -- of people who are very sensitive and are so wealthy that they have the power to move.
I can attract them to my state I -- we're -- places like Nebraska Louisiana and -- is piling on saying you know what this opportunity.
-- -- Governor Perry and Texas is famous for going on hunting trips.
To California where he goes to CEOs right it gives -- -- -- gives in the cell -- says here's my personal number call me anytime telling what I can do.
To attract you to Texas we have several states have offices set up in California because -- -- -- -- here.
Hundreds of companies leave every year making good point about Phil Mickelson has options -- -- -- companies -- they can't go elsewhere and they are doing that out of California.
Is story about Governor Perry true I've heard that before does he really did he -- he -- to governors have their own self funny as a self -- can call one.
Or is it like you don't -- each call is.
Does he did he gives legal literally gets in the cell phone as one number program and then says call me anytime.
And so what I can do it here our governor and our leaders are not all the -- not doing that they're very dismissive.
About companies leaving -- it's not happening their very arrogant.
About why would anyone wanna live elsewhere besides California look the weather's great here but at some point you you do -- -- move that the taxes too high.
I mean you're laughing but that's true for business happen whether I gladly hold you for -- -- poster for awhile but you don't thirty or 37 million people I was laughing when you mentioned Brasco I grew up there in the 1960s we have three referendum.
We -- all taxes in the state of Nebraska for year nobody seemed to know the difference so we had representation without taxation.
I think a lot of states are gonna experiment with doing that they're gonna figure out what's what what level -- taxes do I really need.
For -- sit for the things that make my state grout you know the highway system transportation system of public education system goes back to the articles of confederation.
So we'll see states are gonna make those kinds of decisions not everybody's got the Permian Basin the Texas has it -- its public education system so.
So you know will see some give and take that's a flip side of having to -- states down the road who do away with their taxes -- mean does that does a steep fall apart -- is that extreme.
We didn't fall apart but that would -- -- figure out a way to pay that that you know pay for the Highway Patrol.
I think that that states are searching for a balance I think that the good thing that can come out of this budget debate at both the state level local level.
What really can government do constructively.
How much are we willing to pay to have them do it.
Let's deal with these past pension problems that are.
That part of the state is is money they didn't spend in the past as they promised to spend -- -- spray in problem states are gonna have to figure out how to deal with that and and localities.
This is -- healthy debate I think yet -- I'll give you the last party agree with that.
I do agree with that I think that the opportunity is governor -- going to go hunting for people that wanna live in their states.
In the tax burdens can become too high for people in the gonna start to take governors up and -- All right.
Great panel thanks all of you for joining us we appreciate it happen.