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Cavuto Touts Faltering Florida Economy As Example Of Good Fiscal Policy

Reported by Guest Blogger - October 29, 2009 -

Guest blogged by Brian

Tuesday’s (10/27/09) Your World featured a discussion with former New York Senator Alphonse D’Amato. The premise was that higher income taxes for top earners in New York State are pushing people out and that the same will happen in the U.S. As proof that lower taxes are so terrific, Cavuto cited Florida, which just happens to be one of the hardest-hit states in our current economic downturn and Texas, which makes up for its lack of income tax with sky-high property taxes (ranked #2 in the country). With video.

Cavuto started by saying about New York State, “Taxes went up, they (residents) packed up, and now a beleaguered Gov. David Paterson no doubt wondering what's up. He taxed higher earners looking for their money, now fewer higher earners and a lot less money."

D'Amato said, "We've increased taxes in some cases by over 30%, and why should the exodus slow down? It is not, it’s going to be exacerbated… Tom Golisano, we certainly weren't political allies, but here he is, a multi-billionaire, and he said, ‘I've had it.’"

Cavuto said he thought that Golisano, the founder of Paychex, left for Florida.

D'Amato noted that with the internet, you could establish a business almost anywhere. “You don’t have to be in the center of the financial capital of the world… Washington is going to bring about the same situation, where people… they’re going to curtail their activities. They're not going to invest money to have somebody place a higher and higher tax on their earnings, on their returns, and what we should be doing in Washington is reducing tax burdens, not increasing them."

Cavuto said, "Bottom line is low tax states, low regulation, those are the ones that are not having as nearly the deep doo-doo problems of New York." Cavuto cited Florida and Texas as examples. While it’s true that Florida and Texas are not having the kind of fiscal problems that say, New York and California and many other states are having, that’s probably cold comfort to the residents of Florida. According to a recent article in Reuters, Florida “leads the United States in foreclosures and is grappling with record levels of unemployment.”

D'Amato said, "I think you look at Texas as an example of how you should be running this state. Instead of giveaway programs, instead of the luxury of Medicaid."

Comment: Medicaid is a necessity for poor people to get health care, not a luxury. And when property taxes are high, you owe the same amount no matter what you happened to earn that year.