Your World With Neil Cavuto 01/01/18 4PM | January 01, 2018 Breaking News
Record. Year for stocks, and for your money, well the Bulls keep running or could, we see a bear attacking 2018. Hello everyone, I am trish regan in for neil cavuto happy. New year and this is a special edition of your world the markets rockin in 2017. Closing out their best performance in four years the Dow setting, its, most record, highs in a single, year ever, let's. Go to Fox Business Network Sherri Willis for, how we got, here and what we can expect as we move into 18 hey Jerry well. It certainly was a happy year for your money with stocks surging, to their best performance, since 2013. 2017. Was beyond. Anyone's. Best. Expectations. On the greatest years in 32 years in my career a, pro-growth. Policy, new administration. In Washington, it's quite amazing a lot of room for anxiety, was an amazing, year with a lot of energy in the market and awesome, for the companies that we listed down here take a look at the markets performance, for last year the Dow surging, 25 percent the S&P up 19%. Of an asset beating both of those indexes, with a 28, percent gain and few. Saw these gains coming in fact when asked at the beginning of 2017. When markets, might recover, Nobel, prize-winning economist, Paul Krugman famously. Wrote that his first pass answer, is never and, oh what a difference a year makes take a look at technology, the sector that drove the markets outside games, Amazon. Talking, tech giants, and that wasn't the only sector, doing well consumer, discretionary gained. 33, percent with companies like Home Depot and McDonald's. Staging, impressive, rallies materials. Producers, also driving higher as investors, look forward, to infrastructure, spending by, Washington, sector, losers were telecom, with companies facing high debt loads and intense, competition and, energy. With an oil Blount only, now easing, in fact traders say Washington especially, the White House had a lot to do with stock gains as investors, cheered tax reform, and the president's drive to cut regulations hampering. Company's, fundamentals. Didn't, hurt with the ESPE stocks profits, growing, 11%. Can, we repeat this year well it depends, on who you ask, I. Really. Think it would be very hard to have two consecutive years. 20%, plus gains 2018. Is going to be tough to match, 2017. But as the corporates, get. The money from the tax reform, and put, it back into that companies and get back to their employees, you're gonna see the market continue to drift higher. Trish. Back to you. Thanks. Jerry we know stocks were surging, all year on hopes for tax cuts well now we got them signed sealed and delivered, are they enough to deliver another, rally let's ask Catherine Rooney Vera donis, max Farris and Gary, Koch bum good to see you all Gary I'm gonna start with you how are you thinking about this year how are we set up and. Can we continue, the upside. Well. So far going into the new year I've seen nothing not even a 2% correction, and every, time something tops, out something. New shows up in late in the year we got retail. Transports. Energy commodity, commodities. Really strong as we, move in for, me the, only thing that can stop the market right now is we've had not had a correction. In, a very long time and we're way overdue, so, my bet is sometimes, during the year we'll probably have a five to ten percent IRR but as long as interest, rates stay low as long as these maniacs central, banks keep, printing money and keeping rates down at zero and as long as learnings. Continue, to be strong which I do believe will, occur I think, the market will be okay and I think we'll have another decent year oh that, all sounds kind of good but you did throw that 5 to 10 percent correction, in there let me ask Catherine which would be normal but, you know there's a lot of good fundamentals, out there aren't there Catherine there.
Are And I'll say that I'll take the other side of that Gary I don't think that markets die of old age economic. Cycles don't die of old age there, are some risks on the horizons, but, it's not because we're do and that's not how markets, correct, so, we could get a surgeon. Inflation, and the, Fed has to hike feels itself behind the curve has, to hike more aggressively, than the market is currently pricing, in which is two, three, hikes max but to get that Sergent inflation, right need to start seeing wages. Improve dramatically. We know Jonas something that was in 30 years and people haven't really gotten much of a wage increase. It, would, barely keeping pace with inflation, does. That, change given. The tax cuts. Well. We never had tax cuts really going into this strong, situation. Both with low interest rates real estate prices already going up unemployment. Really low everything's. Really good except you could give you honest argue wages, is probably the only weak indicator, and again it's not weak it's just not going up as fast as everything else seems to be going up hollow surprises included so nobody. Knows it's gonna happen there's no indicator, that's gonna say the markets gonna tank or the economy gonna take any more than there was in 2000, when the last time consumer confidence was about this high really. The only risk is too much confidence and too much you know it has to turn at some point it's not going to go on for it may not die of old age but it does I. Want. To follow that through Jonas because you're saying you know basically in 2000, suddenly, everybody woke up and said yeah you know maybe it, doesn't make sense to have some crazy. Insane. Valuation. On some, sneaker, company just because they happen to sell sneakers online, I mean that, was when reality caught up with people but I'll tell you as that whole thing was a. Developing. I really. Questioned, it and I think a lot of people were out there questioning. It I don't know as I'm hearing, as many. Questions right, now Jonas. Is that fair I mean it feels, like economic. Fundamentals, are improving we got policy, that. That's making, sense on, the economic, front what. Is it that's crazy right now, well. That's, the we might only be in 1997. Argument, it could be a few more years of this to come before we get to really insane levels the last two crashes. And major recessions, really happen because bubbles pop then who was tech stocks and in, oh five or six or seven it was real estate which was overpriced, in too much of people's assets we don't really have a tremendous underlying, bubble but I tell you it's getting close both in stocks and this whole cryptocurrency thing you know how many trillions of dollars of market value do you think you have wrapped up in that before when that collapse happens, that causes a recession, I don't think we're quite there yet but it's getting close to the dot-com, bubble size in total, value almost so, I think it seems to watch out for it and they're based in overconfidence. And over, this wealth effect going, too far too much of a good thing but again we're probably not there yet you probably could say it's got a couple more years good totally I, have to take the other side of that too because I do think there's a bubble in in Bitcoin, but, I don't think there's a bubble in the sp500, what. Moves that could be equity, prices its earnings what moves earnings you, know growing your bottom line you can do that very easily but very quickly by cutting tax at cutting costs what cuts. Costing. Regulation, both of which are had by the same logic there was no bubble in S&P 500, back in oh five or six it was the real estate bubble when that came down to took down the S&P 500 you have the same thing of a different bubble cut we. Don't see a bubble really. On the horizon, and Gary you know I know you talked about five ten percent correction which would be you know theoretically healthy, for market so those things happen all the time. But. There's nothing out there lurking. As, far as anyone, sees right, now in, here. And now that could cause this whole thing to come crashing, down I mean maybe if tax reform haven't gotten through Gary but, it did well, let.
Me Say this you never know what's on horizon but, we still have massive, debt massive, deficits, they are going to grow and but, I said as long as interest, rates cooperate. That, for me is the big, matzo. Ball out there that interest, rates all of a sudden get out of hand to the upside, then, I think the market can, take the hit and that. Would require losing a lot of inflation in the economy. Not. Necessarily. Just remember we are very very low and if they just decide if rates, itself, just the market itself normalizes. You can go back into the threes and fours on the ten-year I think that affects markets but just to go back to one thing I said because I don't think I was understood all I'm saying is five to ten percent would be as normal as normal so can be the one thing we didn't have in 2017. Was a real good Evan flow you supposed, to have Corrections. Along the way and we didn't hardly see any of them and I just think we're doing I think probably 2018. We'll see it but I think it's gonna be a no biggy at this point in time they're high after high. You're. Predicting three thousand on the S&P kathryn, yeah I think we get to three thousand of course there's risks you have geopolitical. Risks you, have policy. Risk the administration, could leave NAFTA, and WTO, these are things that would precipitate a correction, I think five to ten percent but, with earnings growth validating. Current multiples we can get to 20 29 53. And I think by the end of next year Wow all right we're watching all of it so good to see you guys the Senate is getting back to work this week and time, is already ticking to avoid a government shutdown we're, on it plus. Major, airport. Fires a deadly, Amtrak derailment, and. A new signal. From the president, that Democrats. Are going to help him fix these problems. So, markets, are always moving, well update you on these markets still sore Wall Street is into it they like what they're hearing Washington, is always changing, these two sides are far apart we'll get the read of what the president's, thinking Neal's got it covered at noon on Cavuto coast-to-coast I've got the clarity you need from Washington, to Wall Street when the clock strikes 12:00 get ready to get down to business, join Neal weekdays, on Cavuto coast-to-coast. Only on Fox Business Network. The. Calm before the DC storm, the Senate getting back to work this week the house in session, next week and they're already on the clock they've. Got until midnight January. 19th to come up with a spending plan or, else they'll give us a government. Shutdown let's go to Fox Business Network Blake Berman with the very latest I'm Blake it's, not like this White House or Congress will, be able to ease right into 2018, right off the bat they, will have to fend off yet again another, government. Shutdown before. Heading out of town for their holiday break Congress. Punted, the latest spending decisions, to, January, 19th, that's, now the deadline to avert the next, looming, shutdown the, same issues here still remain funding, levels need to be set while, the debate ensues, over money for the border wall and how to treat dreamers, the children, who were brought into this country illegally by, their parents, the administration. Has also signaled, the president is likely to sign an executive order this month that would allow for rewriting, health care rules so, that it will be easier, to buy health plans at a lower cost because, they don't have all of the coverage, requirements that. Are written into the Affordable Care Act the top agenda item though right off the bat will be an infrastructure. Package and President, Trump does not think that will, be too, big of a lift, infrastructure.
Is By far the easiest people, wanted Republicans. And, we're gonna have tremendous Democrat support and infrastructure. As you know I, could, have started with infrastructure, I actually wanted, to save the, easy one, for the one down the road so we'll be having that done pretty quickly the administration, has called for roughly two hundred billion dollars, in direct federal spending, with a total, package of about a trillion dollars, through public-private, partnerships, and other, incentives, however Democrats. Want to see that, direct, federal spending, number much higher than, 200, billion Trish. Thanks. Like so does president Trump see a highway to work with Democrats in the new year my, budget proposal includes. A massive investment. In new federal. Support, for. Infrastructure. No longer will we allow the infrastructure. Of our. Magnificent. Country. To crumble and decay I really, do believe we're going to have a lot of bipartisan. Work, done and maybe. We start with infrastructure. Because. I really believe infrastructure. Can be bipartisan. There's. New urgency to fix things up across the country in the wake of some major airport, fires and of course that deadly Amtrak train, derailment, in Washington. State but, even, if he can get a deal, can. We deal. With the cost let's. Go right now Ashley Pratt who's. Not so sure we can but Blake Rutherford, thinks we can't, afford to, wait any longer here Blake why. Well. I think we've got real infrastructure. Challenges, I mean I think it's it's not a it's, not a partisan, issue in recognizing. That we we, have we have decaying. Infrastructure. All, across the country in red and blue states need, to come up with a solution although, I do think it's going to be a tricky, situation. In, light of the, tax bill how, do we pay for it is a question we haven't really heard from the President, and Congress, hasn't, addressed, this issue it's been focused on other things in 20 in 2017. We'll see what 2018, looks like yeah Ashley um you know that it's, adding up right we better, get a lot of economic, growth otherwise, we're. Not gonna be able to pay the bill here well that's part of the problem you know it's all finally nice to say this isn't, a partisan issue but it is when, comes down to how we go about paying, for it Democrats obviously see, this as something that should be funded by the federal government, Republicans, will see this as something that is a necessary evil, in the sense that it needs to get done but how do we address it and pay for it can it be a public-private. Endeavor. Can it be something that you know companies or, localities. Can invest, in and there would be a government incentive, to that and these are all questions that need to be addressed as this moves forward and what we have seen so far when it comes to legislative, priorities, the president has made this something that initially, was in his 100-day, plan but, this has been pushed back so, 2018. With it being an election year in people seeing their political futures, on the line how, does this work for both Democrats and Republicans do. They want to hand President. Trump a win in a midterm election year do Republicans want, to vote for something that will increase government spending these. Are all questions that need to be addressed it's gonna get tricky I mean Blake will the Democrats play ball on this will they work with him because. They have argued, that, they wanted an infrastructure forever, and hey you're, spending, other people's money, here, so why not get to it but. But seriously. I mean I, under. Where they're. Willing. To work. With him it's talking about going after entitlement. Reform, early, in 2018. So, the president's, gonna have to step up here and say whoa whoa whoa if we're, gonna focus on infrastructure. Let's bring Democrats in, and let's start having a meaningful conversation that, hasn't happened in the Congress, yet so our Democrats willing to deal sure they've got to be invited to the table they have admitted they weren't invited to the table on health care they, weren't invited to the table on tax reform so we're just gonna have to see but actually you, know this might be one where he's, able to make that crossover. Welfare. Reform that. Is what the speaker wanted as the. Main agenda item, it's not what the president wants right. Politically. Speaking how. Does it play out in your view for Republicans. In 18, if they're. Out there spending, money on infrastructure, instead, of saving. People's. Tax dollars through some kind of welfare reform sure. She hit the nail right on the head here because the messaging, that been coming out of the White House or lower taxes, and lower, limited.
Government Messaging. And for. Them to really take a step here, to increase, government spending increase. The amount of kind, of government, reach in some ways with an infrastructure, bill infrastructure. Spending this, is something that will have repercussions I, think, on Republicans, in the 2018, midterms, now with that said there's, already going to be questions out there about 2018. Being a referendum, on Trump's, presidency, so he's going to want a legislative, win and if, he can work with Democrats on, this I think he will so I think this, is on the President's, agenda for, that reason, because he again doesn't want to see this be, a narrative, that happened he wants to win win, win, absolutely. And this is one that I think he, thinks he can win on and he, thinks would be a boost to the economy although, I would just caution not. To go the way of Obama's, infrastructure, plan where we spent eight. Hundred billion dollars, and really wound up with no growth as a result so the critical thing for him will, be to involve the, private sector, anyway, we'll see what happens thanks so much it's good to see you both Ashley and Blake you know you think the minimum wage rage, is, done, well now that several states are raising, it this year, you can think, again. Starting. January 20th, more, news more, business, and even more Kabuto, Neil is working overtime to follow the stories and the money for you stay, ahead and stay informed and stay with Cavuto live every, Saturday starting at 10 a.m. only on the Fox News Channel. They. Shouted, for it now, 19 states and DC are about to deliver it I'm, talking about a hike in the minimum wage which is kicking in today but. Will it mean more. Pay for, fewer, jobs, Allie Stuckey, she, thinks so but Daniel Rockland disagrees, so. Allie what does get you so concerned here. Well. You know I'm not an economist, but I am a millennial which, means high school wasn't that long ago for, me so I remember, econ, 101, pretty. Well and what I learned was that when the price of something goes up people buy less of it so when the price of Labor goes, up employers. Will buy less, labor we saw this to be true with both Wendy's, and Target over the past couple of years Wendy's. Has raised wages both, in 2016. And in 2017. In Azura's, old they had to slash, hours. Of labor by. 31. Hours and the same kind of thing happened with Target when they raised the wages they have to drive up the cost of their of their products, people, stopped buying their products and so their profits, plummeted, that's the only thing that happens when you rage it when you raise, wages. Unemployment. Goes up in the cost of living gets higher as well so. These are all really interesting and important points, and, there's, something to that Danielle, however we're in an environment, right now where I think labor. Has. Really been punished. To the expense of capital in other words capital. Has. Been rewarded. Tremendously, over the last decade, labor, has not and we. Used to live an environment, where you know these two things were not so out of whack but, now they're completely out of whack which means if you're a worker it's a much harder, future.
For You than. You know if you're the one with money that say, investing, in the company, that, employs, that worker and and how do we bring that back into, alignment and not a lot of government, to do that that's, a great question, and I understand that sort of the conservative viewpoint being that government shouldn't be getting involved, and the, the price of labor I will. Say Ellie makes some great points about prices. Raising, that certainly will happen with the minimum wage going up one place that, a minimum wage increase helps, is poverty so, 22, percent of people, earning the minimum wage but, not all teenagers working in fast-food joints 22 percent are people who were living at the poverty level and. A number of studies collected by U mass. Amherst indicated. That since, the 1990s, 11 or 12 study showed that if you increase, the minimum wage you decrease poverty and it's something that we need to think about societally. Mm-hmm alie I mean how, do you respond to that because I think we all have. Empathy for anybody who's working hard in a minimum wage job and, and. Is still stuck in poverty, I mean that's that's. Not, that's. Not in America, we like right, we. Should reward work, and you, know for many people, they're, making a calculated, decision in some cases maybe not to go to work because it's easier to just live off of government subsidies. So, if we want to encourage people to get out there and be working how, do we do it in a way that, is not onerous, for employers, of. Course, well I simply, don't think that raising the minimum wage is going to do that long term I do think that we could see some instant, gratification of, course people, being raised above the poverty line when they make more than the minimum wage but. As I was saying earlier companies simply can't sustain that without, laying employees, off or creating. Automated, systems you talked about capital, a lot of companies. Are willing to invest in capital like automated, systems rather than investing, more in employees, and I'm afraid that if we continue to raise the minimum wage that's what we're going to see we're going to see more, self. Self-serve. Kiosks that. McDonald's. And Wendy's rather, than investing, and more employees and then that's definitely going to leave people into more poverty because it'll lead to unemployment, yeah it's, a complicated, issue I mean cuz Danielle, the companies are doing what's best for them.
And They, have more leverage here no, they certainly do and I guess they the question what, point does government get involved to, try and make the case for the people who are less. Fortunate than, others you know I was a minimum wage worker I was a you, know I worked in wait I was a waitress for many years through grad school but I'm not the kind of minimum wage worker that some of these minimum wages are meant to protect and as I said before it's about working people. Full-time working, people who can't make ends meet maybe, maybe this gets us back to the welfare reform argument, that the Paul Ryan has tried to push in other words maybe. We, need a system, in this country that, rewards, work. And helps people maybe that are on minimum. Wage. Helps. Them to move, up the ladder in some way shape or form rather than just giving them a you, know a check every week I mean these are these are policy, changes perhaps that we should be talking about right now Ali because. Instead of saying okay every employer you're going to have to pay you, know this much money and let's not forget you. Know if, you're, in a different state or a different part of the country minimum. Wage means. Different, things in different places it's, not going to go as far in New York City is it may in Kansas, that's just a reality so how do we address this what policies. Could we should we be looking at Ali to, try and address, the, poverty, issue without, forcing. Employers to, pay whatever we decide they should pay. Government. Decides they should pay. Right. I think we'll you and Paul, Ryan are on the right track with welfare reform and. You also made a good point about especially, the federal government, setting the minimum wage it just simply doesn't address the issues that, are unique to. Communities. And to, cities. And people want a statewide level, edges isn't taken to consideration, the cost of living so, simply regulating. A, price. At which people have to pay for labor simply, doesn't address the issue at hand which is that we have a system that doesn't necessarily incentivize. People to work and I think that's where we have to start rather, than putting a bandaid on a very pervasive and, insidious issue, some. Good points from both of you thank you so much a razor-thin, majority for, Republicans, in the Senate can they hold on that is coming up and taking. A road trip in the new year you might want to bring more, cash and it's gun nothing to do with gas prices found out why next. Good. Afternoon and Happy New Year I'm like a manual here are a few headlines making news today, protests. In Iran turned deadly overnight as at least a dozen protesters. Were killed during demonstrations that, began Thursday over. Economic issues, president. Trump is praising, the defiance, on Twitter, of course saying. It is time for a change in Iran the, president, is returning to Washington at this hour after spending more than a week in Florida where he rang in the New Year with a positive, outlook on the year ahead. We're. Gonna have a great here a fantastic. 2018. We're. Off to a very good start as you know with the great tax cuts and Anwar. And getting rid of the individual, mandate which was very very unpopular, as you know, but. We are going to have a tremendous year, stock. Market, I think is going to continue to go up, companies. Are going to continue to come into the country, among. The items on the President's agenda for, the new year reining in the threat from North Korea health.
Care Reform immigration. And infrastructure. North, Korea's leader promises, that his regime is indeed, a nuclear, threat in, his New Year's address Kim, jong-un said his country has completed, its nuclear forces and warned. That the u.s. is now within strike range adding, that he has a nuclear, button on his desk 10. Americans, are dead following a fiery plane crash in, Costa Rica the, Tartar plane crashed Sunday in a wooded area shortly, after takeoff five. Of the Dead have been identified by. Relatives, as Bruce and Irene Steinberg, and their three sons no. Work right now on what caused that crash and. Customers, lined up in Oakland and across the Golden State today as recreational. Marijuana becomes. Legal in, California. Adults. 21, and older can now legally, buy pot grow, up to six plants and, possess as much as an ounce of the drug we're, covering it all for you live on special, report at 6:00 p.m. Eastern now. Back to your world. Republicans. Are coming out of 2017. On a high note with President Trump signing the GOP tax bill into law but. Should they be worried, about the 2018. Midterms. Washington. Examiner Sarah, Westwood, joins, us now Sarah. You. Know I, was talking with Karl Rove recently. And he expressed a lot of concerns he said absolutely Republicans. Should be very very worried, about. 2018. We know that the president, is going to be gathering some Republicans, there at Camp David to. Try and. Strategize. How they're gonna approach this how. Challenging is, 18 going to be for the party, well. Absolutely, in any midterm. Election, year the party of the President, tends, to suffer particularly. In the first midterm. Election, of any presidency. The party of the president, loses an average, of 32, congressional, seats and Democrats, only need 24, seats in the House of Representatives, to, flip the lower chamber, into, democratic hands there, are 23, Republicans. Who, are serving, in districts, right now that Hillary Clinton won so it is not outside the realm of possibility that, Democrats, could flip the house away, from Republican, control that's something a lot of Republicans, are really nervous about and they're hoping that economic, growth from the tax bill could, give voters.
Enough, Confidence, in Republican, control, that, they leave the majorities, untouched, but certainly it could be a stretch, to say that Republicans are, going to have an easy time hanging, on to their majority at least in the house what. Are the policies, that, the, president can, put forward and the. House can. Move forward with. That. Will help them I mean infrastructure. Is the one that he's talking about right now but there's. Questions out, there as to whether or not that would really aid. Many. Republicans, in that a, lot, of folks don't like the idea of spending, all this money money, that well we don't have, exactly. I think that Republicans will, be running primarily, on the tax reform bill they'll say that they put, more money in the pockets of middle-class Americans and, that will be potentially. What they Bank their entire 2018, strategy, on, infrastructure. Is. In theory a good, thing for Republicans, and Democrats to try to come together on because there is a general consensus, that this is something that needs to get done but, any legislating. Is difficult, to do in an election year and Democrats are going to be motivated to, try, to deny president. Trump anything that resembles, a legislative, victory so it's just hard to see any sort, of bipartisan, legislation getting. Through Congress next year and so we may just be stuck with what, Congress has already passed do this really I mean even infrastructure. The something that the Democrats, have been pushing, forever. Certainly. There might even be conservatives, that object to this because it'll be debt driven spending, there's there's not a lot of room for offsetting. Spending, cuts in terms of what they may be able to get through on a bipartisan, basis, they're not going to be able to use reconciliation, for this meaning they'll need 60, votes to get it through the Senate so you imagine any policy, in the, Senate that gets a maybe, now nine Democrats. On board is, going to be extremely. Difficult, and so because of that I think given the fact that it's an election year it'll be hard, to see any major piece of legislation getting through what do you what do you see in terms of the Senate we've talked about the house and and you, know look they clearly, have their challenges the Republicans, do their what, about on the Senate side well, the GOP, has right, now more or less a dream, map heading into 2018, Democrats, are on defense, in, a handful of states that Trump won like in North Dakota, like an Indiana like in West Virginia, there are Democrats who will be fighting for their political lives, and there are not that many areas, where Republicans. Will be on defense maybe, Jeff. Flake seat could be difficult for them to hold on to now that he's retiring but, overall. Republicans. Are in a good position to hold on to the Senate provided, that we don't see some, sort of overwhelming. Democratic, wave like, the kind of Republican, wave that, we saw in 2010 in the first year of the Obama presidency when, Republicans, swept. Through, the elections that might be something we see in 2018, but Republicans are in a good position it's, interesting that that always happen why do you think that is if people say, oh well we sent you to Washington and we sent the president there to do X Y & Z and you haven't gotten it done and so there's a frustration level, I mean why did why do you see these flips, there. Are a lot of reasons we see these flips but most of all it's hard for politicians, to argue, for continuity, when, voters are not necessarily, seeing everything they want to see in their daily lives there's always something, that they, may be dissatisfied, with whether that's the economy whether that's, security. In their hometowns, immigration, anything that they see not, going wrong the party in control.
Typically, Bears the blame for, that and so it's hard for them to retain their majorities, for long periods, of time that's the nature, of democracy I suppose, very. Interesting, good to talk to you thank you so much Sarah thank, you all right so much for that tax break one state wants you to pay more for. Driving, more. Talk. About a real thing. Drive. More pay. More California. Floating a plan for a mileage tax in the new year to help pay for fixing, its roads and its bridges it's, supposed, to replace the state's gas tax and, get this one, of our free market champions. Gary, B Smith likes. The idea the. Federalist, Bree Payton things, that we should maybe put the brakes on it no, pun intended Gary Vee what, do you say why do you why do you like this. Well. I was like a usage, tax that's rich I think it's the fairest, way it's kind of like what they did in, many. Parts around the country DC where I was for many years just had 12 roads run. By a private, in public. Cooperation. Sometimes. Just private you're basically paying for the use of the road the. Problem, is with a caveat you talk about free market I don't mind that usage tax if you will if we replace the gas tax the problem, is most. Governments. Whether it's state, governments, or federal governments, use, that money for something other, than paying. For the highways, and bridges, they put into the mass transit, or build, skateboard. Parks, or some such thing it's like a becomes, a government, trust fund that's what I don't like about it Bri, you, don't like any part of this right no. I hate, all of it listen, I'm from California my, family, is very frustrated. At the high prices that they're being forced to pay at the pump and. You know the entire reason, why California lawmakers, are even debating, this whole mileage bill in the first place is because they handed out millions of dollars in taxpayer, incentive to encourage Californians. To buy fuel-efficient. Cars and now that a lot of Californians, have hybrids, have these fuel-efficient, vehicles, the. Gas tax isn't paying off as much as these lawmakers would have hoped right so they're doing this they're trying. Well. It's not even innovation, it's just a failure to recognize the. You know basic, economic, lesson of unintended, consequences they, couldn't foresee, you. Know the unintended consequences, of handing out millions of dollars in my taxpayer. Dollars that you know I've paid to the state in years prior, when I used to live there in order to encourage Californians. To buy hybrids they, failed to see the consequences, of that and they're failing to see the consequences of this mileage tax I mean you know we're not talking about toll roads here we're talking about the government devising. A plan to track, how many miles you drove and tax, you like it's a sin tax I mean this is so ridiculous that we're even talking about it if the state wasn't happy look, you. Know the reality is the, state's all over the country right now we're looking at this they're all looking at hiking, gas taxes, and. You. Know this maybe is a new way to deal with this but Gary you, know I don't like any tax hikes at. All, but. There may be something to what you're saying here in other words a usage, tax this, gets back to things. That we've talked about previously privatizing. Highways and privatizing, bridges, trying to find a more, economical. Route to, all of these in the future. You. You. Say this could work and this might be a solution for other states. Well. Yeah I mean look I, will grant that there's always a problem with government implementation. If they just hand it the, highways, and toll roads and whatever bridges over to private enterprise kind, of like the original Turnpike, system, here, in the US was all private, it could work but, the problem, is rarely, with the government, raising enough money the. Problem is that in in California's. Original, what and right now they're charging 41, cents, a gallon in, state. Tax the problem is that all that doesn't go to fix the highway is only about 57, 60, percent in California. Goes, to fix the state highways, they redistribute, the rest of cities and towns. And. Other various, projects. That government likes to get into so, if they dedicate. It it really doesn't even matter what they do I like the usage tax because it's very direct, but if they said look this is kind of that old Al Gore lockbox, it can only go to, fix the state highways and bridges, then. I think you may have a solution. That's at least fair. Brief. Final, more do you yeah I think that that's a completely. Flawed analysis, of what's happening here this is the state, deciding. To track one's mileage, and track one's behavior I don't think it's any business of the government to know how far or how often, you, know I decide, to drive my vehicle that's, that's totally, ridiculous that they're going to try and track, that and devise this system to tax me accordingly, I think that this is social engineering and, I think that it's wrong, well.
Thank You very much good, to see you both always appreciate, a spirited, debate especially, on California, highways Trump, Twitter in 2018. Someone. Here says his New Year's resolution. Should be to tweet less another says bring it on more tweets the better who's right we debate you decide. Starting. January 20th more, news more, business and even more could we go Neela's, working overtime to follow the stories and the money for you stay, ahead stay informed and stay with kabuto live every saturday starting, at 10 a.m. only on the Fox News Channel.
2018-01-09 00:45
