Fox News Channel "Your World" - Transcript
Fox News Channel "Your World" Interview With Texas Governor Rick Perry (R)
Interviewer: Neil Cavuto
Subject: Texas State Surplus Without Raising Taxes
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MR. CAVUTO: Meanwhile, one of the biggest states in good economic state. Texas balancing its budget, get a load of this, banking a $9 billion rainy-day fund. Instead of hiking taxes, the state cutting them. Washington running a massive deficit, talking tax hikes. Not this guy, but he's not surprised. Republican Governor of Texas Rick Perry with me now.
Governor, how did you do that?
GOV. PERRY: Well, we set the table up for it back in 2003 when we came in here and had about a $10 billion budget deficit. We were able to cut that deficit without raising taxes, pass the most sweeping tort reform in the nation. And people paid attention. And we've been a very inviting place since 2003, in particular. For instance, in 2008, 70-plus percent of all the jobs created in America were in the state of Texas.
I'll bet there's probably 49 other governors that would like to be standing up today and announcing that they cut business taxes for 40,000 small businesses during a recession, $9 billion in a rainy-day fund.
MR. CAVUTO: Well, your counterpart in South Carolina has been told, spend this money, this stimulus money we gave you, or else. The highest court there saying, no choice, do it. What do you make of that?
GOV. PERRY: I would suggest that, as your previous person said, the next election cycle is going to be pretty interesting for people that are saying to executives, like Mark Sanford or myself, that you either spend this money or else. That goes counter to the Texas thought.
MR. CAVUTO: This was the state Supreme Court.
GOV. PERRY: I suspect they elect those in South Carolina as well.
MR. CAVUTO: So you're saying, you know, don't buckle to the trend, fight it. Sometimes that's tough to do. Now, you're sitting on a $9 billion cash hoard here. Good for you. But what are you going to do?
GOV. PERRY: Neil, they tried to make us spend unemployment insurance money, $550 million, but there were strings attached in making us expand our program. It was going to be a mandated tax on our small businesses of $75 million a year, and I said no. There were some in the legislature that said, oh, you've got to take this money. And we said no, and we won that battle.
I think the states that maintain the course of good fiscal conservative principles will be the states where people move to because they know they're going to be able to keep more of what they make. Those are the states that are going to get ahead. They're going to be the states -- Texas, South Carolina, Louisiana, Mississippi -- those are going to be the states that you see carrying America forward and taking us out of this recession, with good, conservative fiscal policies.
MR. CAVUTO: All right, Governor Perry. We're watching you very, very closely. Apparently, a lot of other people are across the nation. Thank you very, very much.
GOV. PERRY: Yes, sir. Proud to be with you.