>> FREE TRADER LIKE ME.
STUART: HE IS.
DAVID, THANKS SO MUCH FOR
JOINING US.
>> ALWAYS A PLEASURE.
STUART: THANK YOU.
TO THE TAX PLAN, WHY NOT,
HIGH-TAXED STATES ARE TAKING A
BIG HIT UNDER THE NEW TAX LAW,
WE ARE STARTING TO SEE SOME
EVIDENCE OF THIS.
CONDO SALES, MANHATTAN, DOWN 25%
THE FIRST QUARTER THIS YEAR,
THAT MEANS RICH FOLKS ARE NOT
MOVING TO THESE HIGH-TAXED
DEMOCRAT RUN STATES, WAIT TILL
YOU HEAR HOW MANY PEOPLE ARE
MOVING OUT.
JOINING US DAN MITCHELL, IT'S A
DOUBLE WHAMMY, ISN'T IT?
THE RICH PEOPLE, THE 1% ARE NOT
MOVING IN AND THOSE THAT ARE
THERE ALREADY, A LOT OF THEM
WILL MOVE OUT, AM I RIGHT?
>> YOU'RE EXACTLY, RIGHT,
STUART, THE WHOLE STORY IS SHOT
ON STEROIDS FOR ME BECAUSE FOR
YEARS WE HAVE SEEN THE TREND OF
WELL-TO DO PEOPLE, SUCCESSFUL
ENTREPRENEURS AND INVESTORS
DECIDING IT'S NOT WORTH IT, THE
AMOUNT OF TACKS I HAVE TO PAY TO
LIVE IN NEW YORK CITY, TO LIVE
IN CALIFORNIA, IT'S JUST NOT
WORTH IT FOR ME.
I WILL MOVE TO ZERO-INCOME TAX
STATES LIKE FLORIDA AND TEXAS
AND ELSEWHERE.
BECAUSE OF TAX REFORM AND WE NO
LONGER HAVE THE FEDERAL
GOVERNMENT IN EFFECT SUBSIDIZE
HIGH-TAXED STATES THE PROCESS IS
CONTINUING.
YOU KNOW WHAT I THINK IS
STRONGER EVIDENCE THAN WHAT YOU
CITED, LOOK IN NEW JERSEY, YOU
HAVE A NEW HARD-CORE-LEFT-WING
GOVERNOR WITH STATE LEGISLATOR
THAT'S DOMINATED BY DEMOCRATS
WHO ARE IN THE POCKETS OF THE
PUBLIC EMPLOYEE UNION, EVEN THEY
ARE GETTING SQUEAMISH ABOUT
RAISING TAXES.
THEY KNOW THAT THERE'S NOT A
BERLIN WALL THAT TRAPS RICH
PEOPLE IN THE STATE.
THEY RAISE TAXES EVEN FURTHER,
PEOPLE DISAPPEAR.
STUART: BY THE WAY ON THAT NOTE,
ON NEW JERSEY, I STUDIED JUST
THE OTHER DAY AND QUOTED IT ON
THE SHOW, 10.2% OF ALL NEW
JERSEY HOUSEHOLDS, THAT'S ABOUT
300,000 HOUSEHOLDS WILL ACTUALLY
PAY MORE IN TAX OVERALL BECAUSE
OF THE NEW TAX PLAN, THEY ARE
THE WORST-HIT STATE IN THE
NATION, I SUSPECT THAT A LOT OF
PEOPLE WILL MOVE AND I SUSPECT
WE WILL SEE AN EXODUS FROM
CALIFORNIA, NEW YORK, NEW JERSEY
AND MAYBE ILLINOIS AS WELL.
>> AGAIN, IT'S ALREADY BEEN
HAPPENING BUT BEEN DRIBBLES.
I THINK IT WILL ACCELERATE
BECAUSE OF TAX REFORM PLAN AND I
THINK THAT'S GOOD NEWS BECAUSE I
WANT A STATE LIKE NEW JERSEY OR
ILLINOIS TO REALIZE, OKAY, WE
ARE GOING TO TRY TO JUST RAISE
PEOPLE WITH HIGH TAXES, WE WILL
SUFFER FEEDBACK EFFECT AND
THAT'S THE ONLY THING AT TEND OF
THE DAY THAT MIGHT ACTUALLY
FORCE THE STATE GOVERNMENTS TO
BECOME MORE RATIONAL.
STUART: DO YOU THINK WE WILL
EVER SEE THE DAY IN OUR
LIFETIMES WHERE THESE HIGH-TAXED
DEMOCRAT STATES ACTUALLY LOWER
TAXES?
>> THAT'S THE KEY QUESTION.
YOU OUGHT TO HAVE A CONTEST,
WHICH STATE WILL GO BANKRUPT
FIRST, BECAUSE THEY DON'T DO THE
THINGS THAT THEY ARE SUGGESTING,
WILL IT BE, NEW YORK,
CONNECTICUT, THEY HAVE HUGE
UNFUNDED LIABILITY FOR THE
GOVERNMENT WORKFORCE, THEY HAVE
THE TAXES THAT ARE DRIVING OUT
THE SUCCESSFUL PEOPLE THAT ARE
PAYING BILLS IN THE STATE.
THINK ABOUT IT, IN ILLINOIS, IN
ALL LIKELIHOOD YOU WILL HAVE
HARD-CORE-LEFT-WING GOVERNOR
TAKE OVER THIS FALL MATCHING
WHAT NEW JERSEY DID LAST FALL.
SOME OF THE STATES, THEY ARE
HEADING IN THE WRONG DIRECTION
AND THE POLITICAL CLASS WANTS TO
STEP ON THE ACCELERATOR AND THE
QUESTION IS WILL THE RATIONAL
LEFT, IF THERE'S SUCH A THING,
WOULD THEY SAY BEHIND CLOSED
DOORS, WE BETTER NOT DO BECAUSE
THE GEESE WHO LAY THE GOLDEN
EGGS, THEY WILL FLY AWAY.
STUART FASCINATING QUESTION.
WE HAVE TO FOLLOW THIS ONE VERY
CLOSELY.
I NEVER EXPECTED THE SALT
PROVISION TO BE IN THE TAX
REFORM BILL BUT THERE IT WAS AND
THAT'S THE KILLER OF HIGH-TAXED
--
>> GREAT NEWS.
STUART: FLAT OUT IS.