welcome back they are the last line of
defense against the radical agenda
states are standing up to bite in a
coalition of 13 attorneys general filing
suit
over a costly stimulus bill provision
one that bans states from using
195 195 billion dollars of federal aid
to plug revenue shortfalls due to tax
cuts
jackie your thoughts on this fine print
in the stimulus
that basically bars company counties and
states
from cutting taxes well i'm really glad
that you are pointing this out maria
because
this is typical situation where you've
got certain states that are managing
their budgets better than others are
and then you've got states that have a
shortfall and essentially what they're
saying is we want the federal government
we want
all americans to help us plug the holes
in our budget now
they can do it that way that's one way
to do it the other way is to do what
they're doing here in new york what
governor cuomo wants to do
you can raise taxes to the hilt but then
everybody's going to leave your state
so it's a tough situation to be in um
and there's really no solution to it
except that the states the blue states
really need to
sort of hone in and get a better grip on
these budgets
so that they can find a balance you look
at a state like florida they're not
charging a state income tax that's why
people are flocking there and somehow
they're managing
to pay their costs run the state
efficiently and people wanna they wanna
live there they're not asking for
government help
yeah and and the point that i make all
the time is that money is mobile
and it will move where it is treated
best i mean you're talking about
taxes going higher on the federal level
you're also talking about the high tax
states like new york
raising taxes even more the tax there
nancy going from eight
from 8.8 to 10.3 percent if you
watch governor cuomo's proposals i want
you to listen to larry lindsay who
joined me last week he's the
former chairman of the economic council
under president bush
and he makes an important point about
president biden's tax
uh increases that they're not paid for
uh he says that they're going to be paid
for over 15 years of higher taxes
i don't know where he's expecting to be
there in 15 years listen to larry
lindsay
watch but one thing that struck me
is you put out an eight-year spending
program
that you say is paid for over 15 years
by a tax increase
by any conventional rules that is not
being paid for
so we're back to spend now
maybe just maybe collect taxes later
this is exactly what i've been saying to
larry
how is it possible that you're saying
the spending is over eight years
but you're expecting that these tax
increases are going to bring you revenue
over 15 years exactly exactly and you
know
we're repeating the same mistakes
nancy your thoughts on that i know
markets have not
really reacted to the debt of 28
trillion dollars
but sometimes markets react and then
it's too late your
your thoughts well i love that
that uh segment maria because many years
ago the great uh
great governor of california gray davis
right before he was recalled said
it's not that we have a spending problem
it's that we have a revenue problem
so only politicians can spend money over
an eight year period and pay it back
pay pay for it over 15 years so i agree
with your original
point and that is that money is mobile
and uh
the great irony in all of this is that
most states in fact on average
state revenue uh state coffers are are
back to where they were pre-pandemic so
this notion
that the federal government has to to
bail them out in the first place
is problematic but then to have the long
arm of the federal government
uh and i would point out that the
democratic party was originally the
anti-federalist party
so there's there's very rich irony um
spread throughout this whole story and i
think that i
you know i totally agree with jackie
that the state's attorney generals
have done the right thing and will be
the last sort of defense
against some of this um just beyond the
pale kind of
uh legislation
yeah and these policies matter policies
certainly
impact american people and move markets
as well