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Forbes Media chairman Steve Forbes argues if the government started to act more like tax- free states like Florida and Texas, we'd start to see job c...
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How's this for an analogy he's like -- doctor harming the patient when he tries to deal with the jobs market and the economy.
That's how Steve Forbes has been describing President Obama lately yes Steve of course as chairman and editor in chief of Forbes media.
Great to have in the studio with us always going to be and you know thank you Steve.
OK so make that case to us and not I would say that the I'm sure the about a ministries say we're getting there -- the economy slowly improving and you said.
It's up slowly improving at a pitiful pace the -- -- American history.
And the jobs that have been created since he's become present President Obama had been no disproportionately low paid jobs you don't get the kind of spread you'd normally get.
And if you look at state she sees something very interesting starting to become about us states with high income taxes are -- having losses of population.
-- losses of tens of billions dollars of income.
While no tax state income tax states like Florida and Texas having tens of billions dollars in income coming in.
Hundreds of thousands new people coming in.
What that lead -- and conclude is that that the federal level.
We started do what Texas in the other states like -- done you start to see real job creation you tell you see so you see a contrast between California New York -- we Florida and Texas.
You've been the advocate for years of a flat tax that would -- to the story she's at the boat -- -- -- -- -- -- story yesterday about.
-- even the big Wall Street firms hedge funds and -- going to Florida because they like the tax structure there.
We've done a number of stories set of that -- away people leaving for tax reasons Texas you mentioned.
Leaving California and many times going.
Parts of Texas -- or those always the best.
Comparisons in other words what's happening at the state level some say well you can't always -- that the federal level for example the states have to balance their budget.
Federal government doesn't.
-- said it they don't match up that way when you say what.
Up football most states have a balance but I provisions and the states that are Smart about it keep expenses in line like -- states like Texas have done.
And realize you get revenue by having a benign tax environment or some of -- raise revenue and other ways by closing loopholes or -- or you know sales taxes involved.
-- -- most of the revenue comes from growth.
And if you wanna see -- vivid contrast look at to Europe they're just countries there have been a drastically and dramatically raising taxes and they're going -- to ever deeper recession.
Japan is now in recession I thought they're gonna get out of fourth quarter no because they put -- new tax increases -- contracting get up look at our own history early 1980 Reagan cut tax rates across the board.
From 70% of all -- me down to 28%.
America had a great -- Now what about our economy now she said at the beginning.
The improvements or the acceleration economy has not been what many people would like it to be at this quote stage of the recovery that said we have added jobs we had -- About a thousand a month whatever turns out to be month to month 150 east.
This and that.
Will that.
Be something that picks up for the rest of the year because they're gonna have these debates in Washington again another one now.
Or because we start to cut spending more some would argue more on the on the liberal side of -- they're gonna say -- that's can only hurt growth if we cut spending cut spending.
Up cutting spending -- She helps the economy did what when where the resources come from the come from you either through taxation borrowing or printing of money which is another form of taxation.
-- removing resources from productive people putting in the hands of politicians we know what happens with that you're not.
You're not overly optimistic about the next and -- the year's gonna be hurt by what we did in January raising income taxes never realized with payroll taxes wasn't just the Richard got it everyone got hit everybody did feel that -- right at the maybe -- more than they thought Steve thanks a selective.
Steve Forbes with us today now it's out.
