Rich state, poor state report is out - where's Louisiana?

Newell Normand
Friday, August 10th
Newell talks to ALEC Chief Economist Jonathan Williams and Mississippi Speaker of the House Philip Gunn about ALEC's new report on the economic strength of each state

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Pomona New Orleans it's a Good Friday to saints won their first pre season game they've actually had rough road over the past several season increase season so it was nice to get a win. Although the coach didn't seem. Too terribly happy about it no wind as a win that it creates some momentum and we're excited about that we're also excited about the first night of the play about play by Zach Strief. Just wanna give him a shout out great job congratulations. Hundreds more to go. One down. Apply anymore and will be there each and every time for you we got a great show today in the last hour we're going to be talking to Mike to tune UAW W. l.s NFL and. Less recapping the saints games what we can anticipate going into next week who were the the dark horse is out there what did they do to help themselves and we'll talk about that in the second hour no filter Friday we weren't you two up pop off about. What you find absolutely incredible I'll give dish out first and then we'll go from there in this hour at this week in New Orleans we've had. The American legislative exchange council has been in town their convention over a thousand attendees. We talked to some of the representatives of that organization earlier this week and we have the benefit of having. Jonathan Williams the chief economist at a lecture as well as. Philip gone a member of they elect who is the speaker of the house. To Republican from. Our neighboring sister state Mississippi welcome to the show gentlemen. There are no. So first Jonathan. You issue a report called rich states. Pour states in an it's the eleventh edition that you do for a elect and Thomas sets looks like it looking at a number of economic indicators and it kind of a guide or economist Ted Tally sheet of where states are at the present time. From an economic standpoint tells about. Well absolutely it's been a phenomenal these. Or to work out with former Reagan advisor doctor Arthur Laffer and Stephen Moore our PV. Prius CNN and from the Wall Street Journal to really get that law maker in the public at large. An idea for how competitive. Their state is for economic growth and and job growth going forward and other silly. Different ways to look at that we we chisel yet you're tearing that state legislators. In endeavors in capitals all across the country in control things like taxes and regulation. Labor policy. Collegiate or things for theories is that first of all the things that legislators he controlled verses so many other factors that matter are calico that would sitters yank control. And you know they'll sort things are clapper straight district there appears. We know it matter for economic growth and only matter for wage growth and job so it's all about how to create more prosperous. State that was so individuals and more economic opportunity. And what I liked about it it's kind of a quick guide to see where you stand relative to other cult states and other areas of the country. Albeit weak fell open I may be even more interest that it in the deep south of what's going on there but in I think there's other parts of the country right felt. I. Part. So I'd tell us what it what are the indicators that you see. That really make the difference I mean you'll look at a bunch but what what are the water choose that you think are really the ones that you should be focusing on. Well I think you know focusing out Koppel is exactly. The right approach and you know look at things like income taxes other semi state including competitors dates to yours. They're just taxes which has been really the economic engine of this country during and up. Periods for a the national economy intensity and other state that's booming and that speaker gun working out plans to get there and compact out of maybe even eliminated Mississippi Florida courses and otherwise Apple's so. Would get personal and business income taxes and what really that is the price tag. Estate puts on making income or creating jobs in their state. Vs the other the most basic businesses go. Capital flows work where it says welcome and that is that the direct right I'm doing work or creating a job in in there Louisiana let's say with higher taxes and some of its neighbors. Another big factors. It is not rocket surgery at our lap likes to joke. It is basically stood issue as spending equal taxation at the state level we all have doubt budget requirement vs those guys Washington that don't pass budget belt certainly balanced budget but at the end of the date taxation is spending they're keeping a lid on the growth spending living within means that big government level is so important just like families and businesses do every day and of course been like right to work laws which will be the end of Serbia and the books. For ages. Certain states are now is catching up to where you all of them protected in naturally an important piece or economic development and your workers toward whether they want to do and union or not. I'd just. Jonathan one of the things that I act. That kind of stuck out it's looking through the report we often hear politicians and I used to be one dose of former sheriff who's worked in public sector for forty years. About the number of public employees and what I found is that there were most states are right there within you know. Dozens of one another perm. 101000 population as it relates to the number of public employees they have. They're close you know leave the president and out liar with relatively high number of public employees per per cent of the population. And a certain states organize themselves their ways would. Some blind much more at local levels and multiple local government subcompact that is true and yet it's state and local employees or what he and so that is. We like to say in our report for the size and scope of government and that generally it paid. They have a large public workforce that's certainly at least indicate. That it's spending more than maybe some of the Serb neighbors be here right now paid out. Court government services and immediately the very appeared range of public employees that there paper because they spoke of course services. It should be relatively. Similar cross made a good point. I mean it's just always seems to be one of those political issues that folks throw out there and as a looked across this report Texas were examples at 533 per 101000 Louisiana's at 521 so they ranked Louisiana ranks. No I'm sorry I wouldn't Ron want 551 rank 35 and Texas ranks 29 and their their fairly close. So anyway Phil let me ask you I mean you you get this report obviously you're you're the speaker of the house in Mississippi. What does this report actually revealed to you and where do you draw from and as a legislator. Well it certainly. City. Work. Not work. And a vote Bobble. All out there. It. Was certainly not like that were like your. Work. Well. In all of oh. Good player. Alec. Shall push for all. We. Mary. So. What about. It should be. But. The airport. Your know. It well. Speaker. Well. Talk about. Our. Members. All. The bank deal. What we're trying to be mr. Geithner. Sure. Buyer. One patient apple should. Revenue. In the correct way. We are trying to. We. Call it short about. Karl. Way that should be. Honor actually she was. Open. Your. Job. In courses why. Are our. We can't try to. Come back to work. Entered Iraq shot. Which. According to all our like. Way to bury wreckage. In the we've. Tried it. Oh. And other back a shot that. Shelves this. Or apple and it. Yet. Al great bikes out. Try to position. Theaters is. We gotta get to a break guys but. Philip hope you can stay with because I'd like to ask you about a very interest in proposal you brought four earlier this year of the infrastructure tax swap. And then let's talk about that because infrastructure issues across America. Are very difficult for states to deal with on their own will be right back. We have Jonathan Williams and filled gone from. A elect American legislative exchange council stay with us this is rule on debit audio. Where Bakr were talking to Jonathan Williams chief economist for the American legislative exchange council and also Philip gone too is the Mississippi Mississippi speaker of the house is a member of that organization as well. In addition the eleventh edition of rich states pour states and as it relates to state economic outlook rankings and 2018 based on fifteen policy variables. Mississippi ranks 24 out of the fifty states in Louisiana twenty seven's so we are talking and mr. gone I'd wanted to askew. We may have lost Jonathan knew they are still. Erica I think we lost. Speaker gone and trying getting back. So when we think about. One of the categories that that you look at his apps lewd domestic migration is one of the policy rebels would explain it to cross. Domestic migration of evacuate. Kind of backing into the population numbers are every every year the US Census Bureau. And IRS track. Movement of individuals from state to state course that built into every ten years. Paying attention has the sense that comes out and of course we brought on the line becomes the congressional seats across America based on state population. And so that the that the migration and take total population. And takes out any international immigration. And pick up birth rates and that's rates. And focuses just on Americans that are here you know it's what they're deciding to do what they moved from state to state. And it really built an incredible story which is Americans are continuing to vote their feet. From generally high tech date. To look backstage and stated value more economic competitiveness are pro business pro jobs environment so it's are really telling story we economic revealed preferences. Which is when people take those actions they're following their best economic opportunity art and it turns out. That the places that are booming growing and gaining population or states that generally. A freedom paucity. Yeah I was moved by that variable because it there seems to be a strong. Nexus between that. And your rankings. Amongst the other fifty states. Areas I think it regards directly to that point that people go from state to paper batteries and family whether what to different things. But the number one reason like people moved from state to state is for a job for better economic opportunity and taught outside and our ranking it is. We will get taxes regulation labor keeping all sacked. A competitive as it's our job creation creating. Opportunities. So it's definitely they incorrect the fact that taxes molesting affect the ability. To retain and attract talent and people who is of course their own best interest. In economic opportunity. As you know it's one of the first reports that I looked that I got a governor be honest with you that I liked pictures and you got the grass you've the bar graphs and everything else and it makes it easy to make the connection between. These policy variables. And you you know you see it graphically right away just jumps right off the page Dutch. Well you know black yeah the last fifty pages of the book are one page for every state every state lawmaker interest and individual Gaudin. And split in that they're for themselves and see why is that Louisiana breaks going doesn't. Q what we can do to improve also we ever companion web site for state CoreStates dot. ORG and that web site allows you to go to you're not just the addition of the book but all in addition the book to see how the rankings have changed over these eleven years which is a really fun tool that we just the well. And I think we have speaker gun back and I think you know this report reveals that the strong similarities between Louisiana and Mississippi and speaker alluded to ask you about. This infrastructure tax swap. Notion that your idea that your putting forward as a policy initiative in Mississippi. I tell us about that. Well. No. Matter ago. Oh you're. Talk. Or are correct. But he ought. You're sure you're. A good news should. Or at the proper order. Clearly where the or your approach to play. And the way on the national you'll. You will there be here. And action. Shot wrote. That. Well bush repeatedly. Well. Bite it. I think he'll have his beat them. It. That this award. When he. Which way to. Abort. Dedicated short reverie and job like. Sorry. Or future. Or. But. Especially earlier in all her. State income. It would be great it'll weigh much. Action and girl or work. The future but we shall op. Or right our child that. But he our actual or your peers that. Mr. speaker I gotta get to a heartbreaking I'll stay with us through the break all right we'll continue this conversation when we returned. This is new rule on WWL. We're back we have Jonathan Williams chief economist for the American legislative exchange council as well is Philip gone he has the Mississippi speaker of the house and a member of that organization as well. Mr. speaker you heard given us that the final details of your infrastructure tax swap. Yes sir. Suggest that we. What are Lebanon. He's all year. So. In or you'll. And an equal now. No sign or you're that her four year on Shia. That sure Britain and arch bridge should. Future. You'll. Dedicate that money to. Each and chip. Go directly. To work shall. Oh. Talk to Jonathan. Which Jewish or grooming do you wish it were checked into war. Oh. Very we. And compact players. Some bunny. At a time regard actual. Job and project in. Which I they. You know proper. Shall I shall a portion. And we will work. Not increased. Stretched shine speaker. And action shall expert church ball. Public enemy and dollar. And we get money should just or drop it. What what both feet to vote to view there's a move afoot. About evaluating real in com. Vis a vis consumption. As opposed to other methods your thoughts. Alcatel. Yeah I get you know looking at it may be clear and the question maybe a little bit helpful would urge you like your. But just been reading more and more articles about it you know folks saying that in in in order to get our hands about around real lean com as we report it. It it would be much more favorable to look at it removed from the perspective of consumption. Of what we're actually consuming to determine. You know what the income actually years. Oh sure. So I mean basically. That like it consumed income tax idea which is taking let's say. The dating investment portion. And that is you know music not being tax and her good principles attract all be an economist. You never attacked Dave and investment those are things that you awarded contract to make money. Think kind of taken at approach to consider ending some tax which is. You know just acting in what you and expanding which is equal to we're not caving in conducting such an easy way out and getting to work consumption tax base. Willits safe state. That couldn't eliminate their income tax altogether clear takeaways attack at bats. It becomes consumed income tax and it's a much damaging or mourning can tax state economy and tax. California New York into the estate to that really didn't hit by. Really destroyed their economy. Jonathan also and intend to to the speaker's well. You see a lot of regions that have strong similarities like Louisiana and Mississippi. Do you see states. Being more proactive of working together to try and tackle some of their problems collectively. To become more competitive against some of their some of the states and in other competitive regions for example. Louisiana Mississippi you're agricultural state there timber states I mean there's so many things that we just kind of look. It. And that's correct outside actors here. But they. Are. Or. How or. Alt rock. And we do. Or weeks it. And we sheer. Do war by war. And we can take from Beijing. The break out into the act art. Or legislation. By all objective. Or rich or. Bob. Europe. Are. We take those buying and we sure. Do more there. Try to correction. Or vote for our country. It. And or as we try to distinguish. Use bats or so. Or war or. Each other. Strange. And the most by mobile like. Daddy what are they and a couple year left work we joke. The answer should be yes and no we do share ideas about what but it we do compete and there are attracting agree. Some of Osama. 011. So sometimes your fiercest competitor can be your best now to order. Absolutely especially in the states and the band together they do you work to fight against that. Federal policies that that's one of the great things is when we bring legislators together out like speaker here on there's so much energy would say. What is there from the doubt he's tore my own regions that well have a lot of commonality there so boiling out and stated that they agriculture whether it's manufacturing. And then looking at the ball in that the federal level and then together even may be competitors. Trying to attract businesses in new jobs state to state. They can say you know from these damaging copies were coming out of President Obama administration to EPA or the Interior Department stopped growing gas permitting things like that. It's great that these states failed to band together be an issue and sometimes pays them regions well. Well gentlemen we hope that you guys had a successful convention in hooky in Georgia time in New Orleans and we'd love to host Charles every year. So. Oh yeah all right ever body Greg. The people you all very. But general hospitable. So we welcome Dan IQ let's don't show. Are Roddick thank you also much I'll have a great weekend truly appreciate it time and your insight. Reluctant only all in good. Good luck to Gillick as well. Thanks again I thank them out Colorado we'll be right back it was a culture 60187. He. What's on your mind about what would we just talked about let us know we'll be right back. We're back to even talk in the members of Alec the American legislative exchange council they've been in town through today actually this week meeting at third annual convention will go to the talk lines on one talk to chuck in Metairie what say you chuck. They do our own cheers for notebook about tax on the gas. You know there will at what point would the tax Levy wouldn't be at the retail level vehicles. Well we wouldn't be attacks on again. Shell world that are on their. Sore. No there at the gas tax would be a consumption tax that would be at the point of sale. So yes I owe all of that to you the users would be paying to finance the wrote. So let's say for example. Quite a big topic company with sleek. Would they be tacked on and or Jewish or so yeah at the Paul yeah. You're accurate circular. And in order and then whatever that ride in them whatever they generate with there would be a cut on on his plan. On. Speaker guns plan one in infrastructure tax swap they would reduce the amount of income taxes. By the same commands from commensurate amount of money that they raise on the gas tax. Are shipped out pretty. Yes there are thinking of moving to more of look and this consumption model as a as opposed to the income. Yeah I mean it. You know if there's a lot of what state do it true. An odd I act I brought them all India I get a lot of attacks of daily they're this they're that you know ever every group has detractors right but they were here they were in town and they spent their money here. And I thought it was an opportunity to have them weigh in this was a second group that we had on from gaelic over the weakening and some very of this report. And I've forgot to ask you can get it and I'll figure that out here in the second and knowledge you know. It's really worthwhile looking at quite frankly iconic images snapshot of all. Of the states and in what they do how they do at what they're effective rates are on taxes income taxes corporate income tax. Property tax burden sales tax burden per 100000 dolls of personal income. Side I think it's well done report to kind of see where you stack up to other states. Jorge LA. LEC American legislative exchange council. Aperture are all right chuck thanks George for Colin endless talk to bill and mantra you what say you bill. To I don't I would like to say is that if I was in politics. This problem which felt really great because people say this for hours but are. On the reality that is it would somebody makes it out about a year. And the other guys like Scott put it out about your. And both of them students say pop thousand dollars. A year on groceries. We got it makes public thousand dollars really seems like Medicare bill goes out 8000 yeah I'll bring Jerry to you guys make it to 8000. Eight dollars a gallon is a lot of money and whose property and to do what I. Now with debts it's which shall turn the clock back and that's what this whole movement is used to turn the clock back to where. Then the mid match. Trade war that taxes. And the people at the 1% as the opposite and I speak one on an anti child I didn't really look at a look at how much illustrated taxes in the just. You know gotten much skin but now sort of broke. I can see it the the other side of the equation and so. My biggest problem is that it's not really it's it's it's a great tracks because. On the wealthy. Not the tea hole more and the poor paying their fair here but there are shares of bigger chunk out of this hour. There and it is the god which they can pop current year. Well don't there are those that say to hill in considered the following. That a lot of the folks in the top 1% really don't pay an effective yield income tax is there also the ones get the beneficiaries. Are the beneficiary of all the tax write offs. Well when I don't so I would move to where. We are greater when you moved to the consumption model. There are no exceptions it's appoint a sales tax. And what consume music you're you're gonna pay but I what you would also agree there's no there's no tax policy that's going to be. Implemented where they're not going to be winners and losers there always be that it's never going to be complete equity. Amongst all of the social economic stress however it's impossible goals. Com come come from them during which are on that percent obviously. BP and the people making 50000 or 100000 I'll let a year. Armed they're gonna typical or a pair income towards food gas and so and so forth and all I'm saying is that. That is not going to be away. What they're trying to do Mississippi gonna try to do is there and try to get their say state. Back on top on the packs of people make a and a 100000 dollars a year and the people make it like to casinos. There ought to have a. Yeah but I think. They're given a command surge credit. On your income tax so you're not going to be pay an income tax so whatever. Is generated by them that the gas tax that commensurate amount of money would be a percentage decrease in income taxes. So so somebody that they can say pretty about as too cute. And on the lie there like to whatever case. Kids and adults and I don't have all. The devils did you know any right I couldn't get anything yet at the devils until 2000 dollar credit or income tax. But I don't pay anyway because. You know how to make enough money. Well we're not sure how all that's gonna work out exactly but we're just talking about it at the 100000 foot level. They'll got to get to a break thanks so much for Colin appreciate your time have a great day. Where back can we even talk and two folks from the American legislative exchange council Jonathan Williams was a chief economist there as well as. The speaker of the house of the Mississippi. House or representatives. Philip gone and we're talking about rich states port states and the economic outlook rankings for 28 team have Mississippi. At 24. Of the fifty states of Louisiana at 27. And then they have another grouping. Which they called the state economic performance rankings for the last ten years of post six to 2016. Is most current economic data. That they have and it takes into consideration state gross domestic product at salute domestic migration. And nonfarm. Payroll. And with that reveals is that Louisiana is in 31. Place in Mississippi was in 44 place Alabama and 36. And of the other southern states Georgia was at fourteen and Florida was at seventeen so Conner middle of the pack four Louisiana. One of the things though that did the economist Jonathan Williams was talking about that in that reveals itself. Right away. In this report. And that's why I asked him about it about absolute domestic migration. Where people. Are they common in. Your state in migration or do you have more out migration. The last time that we had a tiny. Itty bitty bit. Though in migration in Louisiana. Was in 2011. And in every year sense are out migration. Has grown. And is. More and more people. Or leaving Louisiana the states that. Seemed to be performing. Greater economically. Our and you look at their absolute domestic migration. Numbers. Where their taxes are. Stable than not changing a lot. That's the states that folks are moving to. In effect when you look at Mississippi Mississippi the last time that they've had an in migration applause was in oh wait. And you look and another statement on eastern seaboard Massachusetts. For example there tax burden. There in comparison ours is incredible. The last time they had me in migration. For one year in 09 and they've had out migration and every other year since 07. Very interesting data very well done enjoyed reading it. It's now time. For the cash contests and hopefully you can get some cash in migration. 4000 dollars in the intercom national cash contest the code word this hour is signal. Tex SI GNALSIGNHL. To 72881. At 72 rating one text now and you could wind. 1000 dollars cash listened for the next code word just before the top of the hour every hour through 6 PM. Thousand dollars up for grabs. Stay with us. It's.