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Strapped for cash New York State may force residents to pay for new license -- whether they want to or not according to our next guest.
Isn't the only wacky -- federal and state governments are trying to do to close deficits.
He just can't understand why people sit back and -- -- joining us now Fox Business network's John Stossel.
Wait a minute you have a perfectly good license plate on your car you find but the number or whatever the heck it's on there and -- you have to pay for a brand new one what does this.
You don't have to you don't have to have a car.
Government gives you that choice but yes today.
-- to turn -- war and I'm less bothered by that because that's a visible tax some people will be annoyed by that it will remind them that these.
Pin -- this bill Riley calls them.
Are spending your money it's the sneaky taxes where government requires businesses like -- phone company.
Charge you for things and you blamed the phone company for your iPhone -- you're not aware it's government socking money away.
What other -- sneaky taxes are they planning in order to get the money that they need.
Well are just give some of the lists from the scene taxes in New York State now the gas tax 61 cents before you and with the -- by the way on alcohol I've got a friend who works at a restaurant he says.
Not only do you have to pay higher -- now on the alcoholic perfect you have to go back into an inventory and pay another tax on -- that you've already bought.
You have to pay an additional tax it's like if they went into your liquor cause and said OK we all you want more taxes on this stuff that you bodily.
And aside from the raw cost just the energy in the wasted creativity that goes in -- doing all that stupid paperwork or hiring accountants to do that.
Who knows what the -- cure cancer if they weren't spending their energy on.
But more of those in -- if you wanna smoke a pack of cigarettes in New York City four dollars and 25 cents.
Packets about half the cost at the tax it's the hard liquor tax in Washington to hate is the worst 26 bucks a gallon all.
Illinois has a junk food tax of 6%.
And my phone bill in New York has seven taxes things like the public's safety commission's searcher city tech sales -- -- nine -- eleven surcharge.
Universal service -- gross -- -- church commuter transportation -- all of which.
Just -- think it's your phone bill but it's more -- I just stayed at a hotel and northern California and there were about three or four different taxes that I started looking up picking.
What did that.
Obviously these states are trying to figure out how to deal with we yawning gigantic deficits in their budgets but what is a better way if there is one.
Don't spend so much.
As Milton Friedman said the -- I think it's a distraction to focus on the taxes because.
What really cost people is the spending sometimes it comes out of inflation are borrowing -- rather than taxes.
If you were to -- the spending.
The none of this has to happen and what's remarkable I mean I would reduce it.
Far below what it is now but even if you say we need all this government it must grow at the rate of inflation.
Had they done that in New York or California.
They wouldn't have a problem now New York would have a fourteen billion dollars surplus that they simply met the rate of inflation plus population growth over the past ten years but taxes -- -- disincentives to -- that is we have an auto rental tax in New York City that is close to 20%.
And a lot of the auto rattled because stores in store fronts here Avis is over there close and now they're going out of business.
Doesn't don't high tax rates drive businesses away.
Sure but just as -- -- is when they inflate the currency.
And they screw everybody.
Johnston also making us feel great about the license plates -- -- -- -- and that's the only option don't buy a car right there ego.
By one and don't drive it OK but but you have to -- Clinton and that is a state long past it's required right here and tried to car.
You pay the state.
Pay the state from morning until night.
Are the bottom line of spending though is that it's never going to be lower than it is unless they're forced to.
You know politicians -- -- we see that with a health care bill now they talk about all the cuts are gonna make in Medicare 40500.
Billion dollars worth of cuts they've never been able to cut Medicare.
When will politicians stop spending and -- we starve them of the chance to -- -- by cutting taxes.
Well then they may just spend and inflate the currency borrow and inflate -- steal it from our children.
That's a good example that you could drop on we're really working with them properly.
Less spending and figuring out ways to be much more frugal.
Yeah -- Germany and Japan their government shrank after World War II because.
We removable park and they had to start over in other words no it really Thomas Jefferson said it's the natural progress of things for government to grow.
And liberty to yield but it was a Democrat Bill Clinton is president said the era of big government who is over now of course she was way -- wrong not that he didn't mean it but he did well he didn't work with the Republicans in congress.
To pass that welfare reform bill which which lowered spending tremendously of course you also had the peace dividend because that the Cold War was over.
But it is possible for two parties to get together in this government and lower spend it has happened welfare reform is one of the rare exceptions but think if you're an average congressman you're not -- like we are.
And all day you hear testimony on.
You can -- this.
Take a look at the children will suffer and they do 98% of the -- How we need more money.
Very tough to resist John Stossel of Fox Business good to have you thank you very much.
Will -- be up.
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