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THANKS SO MUCH FOR JOINING
US.
ARE WE GOING TO DAVID ASMAN,
GUYS? OKAY, GEORGE W. BUSH
TAX CONFERENCE IS UNDERWAY
IN NEW YORK CITY.
OUR OWN DAVID ASMAN IS LIVE
FROM THE NEW YORK HISTORICAL
SOCIETY WITH A FIRST ON FOX
BUSINESS INTERVIEW THE DAVID,
TAKE IT AWAY.
>> OKAY.
KIND OF FUN HERE, WE JUST
THROW OUT A LINE AND ANYBODY
THAT YOU REAL IN HAS A STORY
TO TELL YOU, PARTICULARLY
THIS GUY, THE GOVERNOR OF
TENNESSEE.
TENNESSEE, CORRECT ME IF I'M
WRONG HAS NEVER HAD AN
INCOME TAX, IS THAT CORRECT?
>> WE HAVEN'T.
I THINK WE'RE SEEING BENEFIT
OF THAT NOW IN TERMS WE HAVE
BASICALLY 8% GROWTH FOR THE
LAST THREE QUARTERS.
WHILE THE WHOLE COUNTRY
MIGHT BE COMING BEING I
WOULD ARGUE WE'RE COMING
BACK QUICKER AND I THINK TAX
POLICY IS ONE OF THE
REASONS.
>> IN FACT, ART LAFFER, THE
LAFFER CURVE.
I HAVE KNOWN ART FOR 25
YEARS.
HE MOVED FROM CALIFORNIA TO
TENNESSEE PARTICULARLY
BECAUSE YOU DON'T HAVE A
STATE INCOME TAX.
>> HE DID.
I CAN NAME COUNTLESS
INDIVIDUALS AND CORPORATIONS
WHO HAVE DONE THE SAME
THING.
SO IT WOULD BE YOU ARE
ARGUMENT THAT THE LOWER WE
CAN TAXES AND PROVIDE NEEDED
SERVICES THAT WILL HELP OUR
GROWTH MORE THAN ANYTHING
ELSE WE CAN DO.
>> NOW YOU DO HAVE AN ESTATE
TAX.
A LOT OF PEOPLE COMPLAIN,
OBVIOUSLY IF YOU DON'T HAVE
INCOME TAX YOU HAVE TO GET
REVENUE FROM SOMEWHERE.
ONE OF THE PLACES YOU GET IT
IS ESTATE TAX BUT ACTUALLY
DOESN'T GET YOU THAT MUCH.
WHY DON'T YOU JUST GET RID
OF IT?
>> FUNNY YOU SHOULD MENTION
THAT.
WE'RE ACTUALLY IN THE
PROCESS OF DOING THAT I HAVE
A BILL WITH THE LEGISLATURE
THIS YEAR AND BUDGET THIS
YEAR OVER THE NEXT
THREE-YEAR PERIOD WOULD
TOTALLY PHASE OUT ESTATE TAX
OR DEATH TAX AS WE LIKE TO
CALL IT IN TENNESSEE.
SO WE'RE WORKING ON DOING
THAT AS ECONOMY COMES BACK
AND WE GET NEW REVENUE, GIVE
A CHANCE IN GOVERNMENT TO DO
SOMETHING REALLY DIFFERENT.
GO BACK TO WE'LL SPEND MONEY
THE WAY WE USED TO OR
REDIRECT OUR PRIORITIES.
ONE OF THOSE SHOULD BE
MAKING THE STATE MORE
AFFORDABLE AND MORE
ATTRACTIVE FOR PEOPLE.
>> SO WHERE DO YOU GET
REVENUE?
IF YOU CUT THE REVENUE
SOURCE FROM STATE INCOME TAX,
CUT IT FROM ESTATE TAX, HOW
DO YOU GET REVENUE TO MAKE
GOVERNMENT SUCH AS IT IS
WORK THERE?
>> ONE THING IS WE HAVE REAL
GROWTH IN TENNESSEE RIGHT
NOW.
LAST THREE QUARTERS WE'RE UP
ABOUT 8%.
>> WHAT IS YOUR UNEMPLOYMENT?
>> UNEMPLOYMENT IS DOWN TO
8%.
IT HAS BEEN HIGH AS 10.
SO WE'RE BELOW THE NATIONAL
AVERAGE REALLY FIRST TIME IN
THE LAST COUPLE OF YEARS.
SO I THINK WE DO TWO THINGS.
ONE YOU LOOK FOR REAL
GROWTH.
NUMBER TWO YOU SAY ONE OF
THOSE THINGS AS GOVERNMENT
WE'RE DOING THAT WE DON'T
HAVE TO DO?
YOU'RE MAKING THOSE HARD
CHOICES.
IT IS SAME ONES FRANKLY OUR
COUNTRY WILL HAVE TO MAKE IF
WE CONTINUE TO BE THE
COUNTRY WE'VE BEEN.
>> YOU ALSO ATTRACT A LOT OF
FOREIGN BUSINESS TO
TENNESSEE AS WELL.
DO YOU HAVE A STATE
CORPORATE TAX?
AND IF SO ARE YOU THINKING
OF CHANGING THAT?
>> WE HAVE FRANCHISE AND
EXCISE TAX ON BUSINESSES
WHICH --
>> SOUNDS LIKE A FANCY NAME
FOR A CORPORATE TAX.
>> IT IS NOT A CORPORATE
INCOME TAX BUT AGAIN IT IS
LOWER THAN WHAT YOU WOULD
FIND IN MOST STATES.
WE'VE HAD GREAT SUCCESS.
VOLKSWAGEN LOCATED THEIR
FIRST NORTH AMERICAN PLANT
IN TENNESSEE TWO OR THREE
YEARS AGO.
THEY RECENTLY AGREED TO
EXPAND PRODUCTION BY ABOUT
25 OR 30%.
OUR MANUFACTURING SECTOR IS
GROWING AS RAPIDLY AS
ANYTHING, ALONGWITH BUILDING
SERVICES.
WE THINK THOSE ARE TWO GOOD
INDICATORS.
>> THEY'RE GIVING ME A WRAP
BUT ARE CHANGES YOU MAKE AT
STATE LEVEL GOING TO AFFECT
FEDERAL INCOME TAXES?
>> WE HOPE THAT SOMEBODY
WOULD OBVIOUSLY GET THAT
MESSAGE.
THE STATES THAT ARE GROWING
WELL, GAINING PEOPLE,
GAINING, GAINING BUSINESSES
AND REVENUE, THOSE ARE THE