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Transcripts For FOXNEWS The Journal Editorial Report 20240706

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Circumstances here require the appointment of a special counsel for this matter. This Appointment Underscores for the public the departments commitment to both independence and accountability and particularly sensitive matters. And to making decisions indisputably guided only by the facts and the law. Lets bring in Wall Street Journal columnist Dan Henninger and kim strassel do you think Merrick Garland had a choice here or was he boxed in and really had to appoint a special council or is he just trying to build in some political insulation here for the hard choices that may come . Well i would say all of the above, paul. [laughter] for sure. I mean, really consider that one week ago today, we were all sitting here discussing that fiasco of Kevin Mccarthy House Speakership Roll Forward nearly one week we have a spectacle of a special council appointed to investigate the sitting president of the United States after one has already been appointed a special council to investigate the former president of the United States both for doing the same thing keeping classified documents in their private residence. This is no joke people robert heard that federal prosecutor put a Defense Contractor in prison for nine years for holding many more documents than this. But nonetheless, it can be a crime. Well never quite know i suppose what is in these classified documents. But we now have the possibility of a two special councils hanging over the heads of the political system in this country for at least a year. Waiting for other shoes to drop either on the head of joe biden who probably is going to seek his parties nomination and donald trump, who is declared for the presidency. So Merrick Garland has really put this Country Politics into a deep mess i would say, paul. Paul yeah. Kim, i just i really cant quite believe this. We have the Justice Department of the United States investigating now the sitting president to whom the Attorney General reports. Who is going run for releanings also donald trump who is going to run who is running against that president. How in the world did the Justice Department and Merrick Garland let get dragged into being a major factor into and the next president ial election campaigns after the fbi in 2016 and 2022 . Glim right againen i know this is most amazing thing did they learn nothing . I keep going back to statement where he talks about extraordinary circumstances. Well, the reason we have those extraordinary circumstances is because of Merrick Garland look all the way back when it came out that there was a Document Dispute with donald trump there were many ways that department of justice could have handled this. They could have simply continued to negotiate to get those documents. They could have even gone to court to get an order for the orderly transfer of those documents and instead Merrick Garland decided to do this unprecedented fbi raid on maralago and then he escalated even further by appointing special council and thats what got us where we are now. Because when it came out that joe biden had the same problem he had no choice in essence politically if he didnt want to look like was endwaijing in a double standard but to appoint another special council so this goes back to his initial decisions. Thats where we are. Yeah thats one of the rules of management is once you make a bad decision you usually have to make some more because they lead you down a very bad, bad place. So kim how much political vulnerability here is there for President Biden with these documents . Well, look, theres the immediate one which is that were all talking about this at the moment as dan was saying. But look, in some ways, there are bigger questions legally around the fact biden has these documents and there are trump. You know, trump had Declassification Authority as president , and the president ial records act which he likely is violated in some way has only minor penalties attached to it. There is less flexibility in the maneuvering of Vice President has to maintain classified documents outside of secure facilities, and so well have to see how that plays out because that is a big and important distinction between two scenarios. Paul but theres no chance biden would be indicted for that. I cant imagine that. I dont think so consider the fallout paul, no matter what is decided here half of the country is going to consider that politics is involved whatever happens to either of these men and special councils. Paul speaking to about half of the country, dan, the obvious comparison to donald trump handling of the documents, the press is that pains to say that this very different case, joe biden. But if youre looking at this from outside as average citizen, its going to be very, very hard for independent council to indict donald trump for something and have joe biden cleared is it not . Yeah. I think so. Though, i would doubt that mr. Smith and mr. Heard will be exchanging notes that would be improper. Again, you know, the responsibility falls back on Attorney General garland to well would have faulten on him to shut this thing down and difficult to see that at this point. Bear in mind we have the House Of Representatives james comer looking into the Hunter Biden Issue is asking for documents related to these Classified Biden Classified Biden documents and no doubt he would like to know whether it has to do with ukraine or comien so politics of this joust going spin completely out of control. Paul what a mess all right when we come back 118th Congress Gets underway with a bipartisan vote to establish a committee to counter the china threat. Well talk to the chairman of that committee from a republican congressman Mike Gallagher, next. They customize your car insurance. So you only pay for what you need whoo we gotta go again. Only pay for what you need. Liberty Liberty Liberty liberty oh, whats this . The Sofia Vergara collection at americas best . Wow, amazing styles and unbelievable prices . Now thats quite the duo. Get two pairs of Sofia Vergara frames plus a free exam for 89. 95 for a limited time at americas best. 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And may worsen ibd such as Crohns Disease or ulcerative colitis. bridget now, im ready to be seen again. vo visit mytepezza. Com to find a t. E. D. Eye specialist and to see bridgets before and after photos. Identify heard my colleagues on both sides say that the threat posed by Communist China is series. I fully agree. This is an issue that transcends our Political Parties and creating the select committee on china is our best avenue for addressing it. Paul 118th Congress is underway and after last week speaker fight there was a rare note of bipartisanship tuesday with house voting overwhelmingly to create a select committee to investigate the military, economic, and technological threats posed by china. Republican congressman Mike Gallagher of washington is the chairman of that new committee. He joins me now. Welcome, mr. Chairman. So look, a lot of government investigates china right now. Weve got the pentagon does a military assessment, wall street and others all look at the economy of china. Whats the value added for your committee . Why have this committee . I think there are at least two areas where we can have a unique impact. One is elevating the urgency of the situation and communicating directly to both the American People and the chinese as to why they should care about this. For example, we on the Arm Service Committee Talk About Helping Taiwan defend itself but it is my observation that eve with a long way to go in terms of explaining why taiwan matters why should someone in northeast wisconsin care about cross straight deterrents in the indo pacific region. So explaining the why to the American People, communicating the stakes is going to be essential. Also, for the very reason you mentioned that china is spread across multiple Committee Jurisdictions you need to have a committee with representatives from all of those committees that ensures good ideas for policy and legislation does not slip through the cracks. That is injecting sense of urmingt city into things that we want to get done in this congress and i believe in divided government, even with a narrow republican majority, theres a lot we can get done in order to better protect ourselves from the threat posed by the Chinese Communist party. Okay now you have talked yourself, recommended the u. S. Ban tiktok for example the tiktok app because it is a threat to privacy and american security. Are you going focus at all on chinas Economic Impact to the United States, for example, it is purchases of land its investment in companies. The degree to which it tries Influence Operations through Confucius Institutes is that part of your in addition to tiktok ban which are on our agenda and tiktok ban is the wild whes it comes to Cross Border Data flows theres really no coherent regulatory structure as we try to protect ourself it is from china we need poirg out how to work closely with allies on a cooperative Data Sharing Framework before he died Prime Minister abe in data free flow with trust which is a good model. Thats an issue you mention chinese Land Purchases happening in the midwest it is happening in florida. We have various governors like Governor Desantis taking action we want to do Field Hairings where this is happening near military bases to understand whats going on and what the right Legal Framework is to protect ourselves against us. The other thing when it comes to cocoercion and we see them pop up here in america that doesnt seem right to me we would to do Feet Hearings in new york and tiewk local Law Enforcement officials talk to the fbi. And understand how do we prevent the ccp from having effectively Police Stations on american soils that they can use to harass either our citizens or members of the chinese deaspra. A lot of interrelated commerce, huge enormous hundreds of billions of dollars in cross border trade. Do you think that the is one of your part of your thinking here Going Forward that maybe there needs to be a decoupling here significant decoupling economically between the two countries . Yes. First i think we need to recognize a little bit of humility this make this is competition so complex in some ways, the new cold war is more complex than old because we were never economically entangled with soviet union we didnt have to consider decoupling. I think whats reasonable for legislators like myself to Ask Wall Street is, why is it that Tax Advantage Identities be the University Endowment or state and local Pension Funds allowed to invest in Chinese Industries that facility the yen side of Uighur Muslim and china modernization we dont want in other words the health of millions of american retirees to be dependent on chineses military ambitions being successful. So i do believe we can consider a framework that is still respects free enterprise, still respects the beauty of our Capital Markets here in america while at the same time make sure that we are not wittingly fight ing modernization. You spoke about lack of u. S. Military preparedness to defend taiwan if it would ever come to that. How does that square with desire by republican colleagues to cut the fence by 75 billion in thefection fiscal year . That doesnt seem to square at all. It doesnt. It doesnt square i can guarantee you wont Passing Budget Resolution that cuts defense. I think where people that are on the more hawkish side of the equation need to do a better job, however, is explaining how were going ensure that every dollar we spend on defense goes towards hard power, goes towards enhancing war fighting capable and doesnt go towards an ever more bloated Pentagon Bureaucracy how do we get our tooth to tail ratio what it is called in better balance and figure out how we put hard power in particular west of the international dateline. I guess in other words how do we make sure that the failure of deterrence that we saw in ukraine doesnt happen in taiwan and there i think my committee can play a supporting role with the Foreign Affairs committee to ensure that the 18 to 19 Billion Dollar back log of Defense Items that weve approved for sale to taiwan but havent been delivered that that gets cleared in the next go years were not acting with the sense of urgency and unless we change course, were going stumble into a war the likes of which we havent seen since world war ii. Paul all right congressman Michael Gallagher thank you for coming in well be watching closely much more on the first week of the 118th Congress when we come back. Republicans are wasting no time ramping up their informations and from the biden family eetion Business Dealings to origins of covid19 well tell you what they have planned. Port my familys immune health, i choose airborne. Unlike some others, airborne gives you vitamin c and so much more. 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Serious allergic reactions may occur. Tremfya® may increase your risk of infections and lower your ability to fight them. Tell your doctor if you have an infection or symptoms or if you had a vaccine or plan to. Emerge tremfyant®. With tremfya®. Ask your doctor about tremfya® today. Pst. Girl. You can do better. At least with your bigname wireless carrier. With Xfinity Mobile you can get unlimited for 30 per month on the nations most reliable 5g network. They can even save you hundreds a year on your wireless bill over tmobile, at t, and verizon. Wow. I can do better yes you can i can do better, too see how easy it is to save hundreds a year on your wireless bill over tmobile, verizon, and at t. Talk to our switch squad at your local xfinity store today. Paul house voted tuesday among party lines to establish a panel to investigate socalled weaponization of the federal government. It is part of a growing list of Oversight Priorities the new republican majority has laid out from the biden familys Business Dealings to the origins of covid19. That list republicans say now also includes an investigation into the president s handling of those classified documents. I think congress has to investigate this. Heres an individual thats been in offings for more than 40 years. Heres an individual that sat on 60 minutes so concerned about President Trumps documents locked in behind and now we find it just as a Vice President keeping for years out in the open in different locations. Paul were back with Dan Henninger and kim strassel so of all of these investigations that are lining and a lot of them. What do you think has the chance of really developing some information that would tell us things we dont know and have an impact on government and politics . Look, i think one with the most potential paul, is this weaponization panel which is going to sit inside of the judiciary because its remit is to big it essentially allows the committee to look at anything that they view as a potential assault on Civil Liberties of americans. I think its going allow us to get some more insight into some of the great big stories that have been out there today. One of them ongoing one is what were some of the things that the fbi was engaged in whether it be in the 2016 election or Hunter Biden Laptop in the 2018 election. Youre going get a lot more information about what big tech has been doing especially now that elon musk has been laying some bread crumbs out in terms of different storylines tbhak developed but it is probably also going look too at what the department of justice has been doing with regards to that memo that garland put out involving potentially monetarying parents showing up at School Board Meetings so it is quite large but i think there are really important stories here that they can shed some light on. Now, this is weaponization meet going to be run by jim jordan, kim, the ohio republican. But theres another one i think could be a sleeper here and thats mike turner at Intelligence Committee looking at the role that fbi officials current and former played in 2020 about are when they came out with statement 41 former officials that said that oh Hunter Biden Laptop was disinformation. That, that could yield some results. Yeah. Absolutely. Especially were going to get potentially a bigger look at what kind of engagement continues between the Current Administration and some of these former intelligence officials. How much coordination was there, theyre talking about in the runup to the 2020. So i think there could be some real stuff that comes out of that. Especially the fbi and whether or not it was indeed taking active actions to suggest hunter bides laptop was russian disinformation. Paul dan, you and i remember the 1970s i guess ill ask but the church committee, the democrats did get digging into the fbi and cia now things thine totally turned on they head democrats defending the medaling by the fbi in american politics. What risks are republicans undertaking here do you think politically if they go after the fbi . I dont think there are too many risks politically from going after the fbi. I mean, fbi has showed itself at least during the trump collusion stories to have been actively involved. I think, in politics, the problem i think the political vulnerability for the democrats in the house is just from a purely political perspective these oversights hearings indeed could reveal interesting important information. I think the danger is they could get to the point of Investigation Overload and as theres a pongt where American People trying to follow all of the detail of these investigations which other nature involved bureaucracy it gets very process oriented bureaucrats are very good at defending and deflecting attention. Will the public simply begin to tune out and begin asking when the republicans are going to do something that they regard as normal politics . Now Kevin Mccarthy says he intends to do that. Theyre going to attack spending doing something about the borders and so forth. But they really are going to have to strike a balance i think, and not get too bogged down in the weeds here of investigation. Paul really good point dan particularly with press that doesnt wont be helping republicans here in the same way for example the media echoed what the democrats did with the january 6th committee. Yeah, thats right, and sure. The media is going to look the other way on a lot of these things. You asked kim what she thought most important investigation was. I personally think one of the most interesting things is going to be congressman james comers look into joe bidens Business Dealings with his son, hunter. I mean, this is something i think that intrigues the american public. Theres the possibility that he really was involved with those dealings in china, and possibly ukraine. And if joe biden is thinking of running for president again as he is and this starts coming out later in the year, this could be a real political problem for the president if some of what mr. Comer find is incrime story. Paul kim republicans are notoriously bad historically at oversight in part because they dont have a lot of press help. What is your advice for making this effective about 30 seconds. I think they need to be focused and they need to keep those storylines distinct and they need to really Pay Attention to simply giving People A Martive backed up by facts. Theres a potential for all of these to spiral out of control to the point where no one can follow whats going on. Other advice leaked to kim strassel that would be my thats it i forgot. Yes. Paul when we come back ahead of expected launch of his Reelection Campaign press is touting pivot by President Biden saying hes moving to middle on immigration and other issues. So should we expect to see a more moderate president in the next two years or more of the same . Ow, ow with a big, fresh carrot and a whole lot of cheese and the mirror from your van is halfway down the street well, you can say that wait, what . I said, someone just clipped the Side View Mirror right off the delivery van. When owning a Small Business gets real, progressive gets you right back to living the dream. Now, where were we . Why, you were fixin to peel me. [ laughter ] acoustic Soul Music Throughout Acoustic Soul Music Throughout Acoustic Soul Music Throughout Acoustic soul music throughout ahead of the expected launch of his Reelection Campaign, the press is touting a pivot for President Biden with multiple stories claiming that he is moving to the middle pointing to his visit to the u. S. Mexico border and his appearance with Senate Minority leader Mitch Mcconnell at an event in kentucky so is the president really changing course and what should we expect from the administration as we approach the 2024 election . Lets Ask Wall Street columnist Fox News Contributor karl rove he was a Senior Advisor to president george w. Bush. Karl, welcome. I wonder as a long time watcher of president s after the midterm elections what do you think of the early steps here by biden in response losing the house . Is he moving to the middle . No, not really hes doing a couple of rhetorical things im going to go to the border for first time and when he goes to the border, it deepens the image of him being disconnected from the problem along the border. Not more connected and then he appears with Mitch Mcconnell fine that will do what . You know, impressions are created in first two years of a president s term and it is hard to change those without dramatic action. And these are not dramatic actions and theres going to be a restraighten on ability of Democrat Administration to move further left because theyve now have to deal with Republican House but lets not kid ourselves this is the best they can do as, quote, move to the middle, theres not going to be anything substitute. Paul you know, i guess if you look at the youre sitting in ron klain seif chief of staff of the white house you look at what happened in the midterms. They didnt pay very big price for the way they govern first two years. Theyre dealing with a Republican House that is going to be hostile. And a very narrow majority, so i guess their calculation is maybe why should we change . We descroangt to. We can beat these guys the way weve been governing. I think thats right. I think thats maybe what theyre thinking and mistake is between difference between republican in the house and what we have today is 12 seats ive gone through 12 seats where the former president of the United States, donald trump, endorsed a knuckle head he endorses guy for example in ohio who is running in a recently reconfigured seat thats going to be republican. He endorsing him for one reason he put up a gley in front yard for trump in the 2020 president ial elections and trump thought that was really cool and endorsed him turns out guy was a liar about being a combat veteran. He endorsed a guy in michigan against somebody who had voted to impeach him and that republican loses by nearly 15 points. In what has been historically republican seat, he loses a seat in Washington State by endorsing again a somebody who oppose somebody who had voted to impeach trump or republican. And turns out that republican that trump endorsed was a follower of queuenan and 12 seats could have had a 222 republican majority but a 232 republican majority if President Trump had not nominated and backed to help nominate a bunch of Knuckle Heads so this is a mystery by the administration that oh, we benefited in the election by taking on the socalled, you know, by being liberal and by energizing our base. Thats not how they won the election. They won election because other side the republicans side nominated candidates in races that it should have walked away with. Paul okay what i see coming out of the democrats in the first week here is a replay of that strategy in other words every chance they get is maga republicans extreme republicans, look at what theyre doing in the house. Biden talks about immigration, says republicans lets do a deal but then he says youre extremist who prevent us from getting deal they are trying to pigeon hole republicans again, as extremists and maybe theyll figure theyll get away with it again. They may and because the question is what are republicans in the house going to do . Are they going to realize there needs to be a balance between constantly investigating the administration and legislative putting forward conservative proposals that will attract support across the country and have little chance of making it through the senate and being signed by the president. But nonetheless will speak to what Republican Party stands for and will they take on administration in a thoughtful way when the administration offers proposals. You mentioned immigration. Think about this. This was what they had the president goes to the border and mayorcuss and administration will accept 30,000 people a month from cuba haiti, nicaragua and venezuela if they apply in their country of origin and work for two years and also will then use title 42 to expel 30,000 people a month who come across the border illegally from those four countries. And this is their big reform . I mean figure this out. Why are we rewarding three adversaries to the United States Cuba Venezuela and one fail state sending us 30,000 a month and well accept them and we can be guaranteed there are 30,000 people a month trying come here legally. We dont know that there are going to be 30,000 of them coming here illegally to expel but this is the big reform. And then they say we need more Resources Mayorkas says spell it out and we need republicans to fix the broken system. Well why didnt you do that when you were in control so republicans are being given ammunition but they got to do this in the right way which means they got to seek balance between, you know, investigating only and trying to legislate. Yeah i think thats a very difficult job for Kevin Mccarthy new speaker karl thanks so much. Appreciate the insight thanks for coming. Still ahead with his Student Loan Forgiveness Plan in limbo ahead of a Supreme Court hearing. President biden rolls out his plan b well have the details on the administrations latest push to wipe out hundreds of billions of dollars in college debt. Next. Ly fuel for immune cells and sustain tissue health. 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Ask your doctor about fasenra. With Student Loan Forgiveness Plan on hold, at the Supreme Court, the Biden Administration this week rolled out plan b, a new rule from the Education Department that would wipe out hundred of billions of dollars in student debt on Installment Plan wall street Journal Editorial Board member iowa iowa iowa total amount of u. S. Loan debt is what 1. 6 trillion is that the accurate figure . Yeah. Thats for the federal Student Loan Debt doesnt include private Student Loan Debt but yes. Thats how much on books of the u. S. Taxpayer ultimately on hook for that okay. So 400 billion writeoff they had that was considered by the Supreme Court for abuse of executive authority. Now, they come with this plan, tell us about the details of this and how much it would cost. So what the Biden Administration is doing is revising these long standing income based repayment plans that existed four decades in congress and fiddled with them during obamacare they allowed students to cap their Monthly Payments at 10 of their Discretionary Income and discharge remaining balances after 20 years. Ten if they went to work at a nonprofit or government agency. With Biden Administration is doing here is basically rewriting plans by fiat capping Monthly Payments at a mere 5 of income, and waiving or discharging debt again after ten to 20 years. But it is also fiddling with a little other dials and allowing any borrower who makes less than 30,000 not to pay a cent toward their not to pay a cent. So essentially hes making college free for millions of americans right now. Paul whats the total estimate of the cost of this . So this is estimated cost about 138 billion. But that doesnt include the 400 billion so loan forgiveness struck down you can bet that this will cost a lot more probably hundreds of billions of dollars more and again that is just for one decade of this is extended permanently you can expect it to cost perhaps, you know, up to a trillion. Paul and dan incentives here of all of this suggest that the message to colleges is keep raising tuition man because theyre going keep borrowing and nobody will have to pay it back. Yeah exactly right. Incentives are ultimately tremendously perverse and yes raise tuition and people at the upper end have to pay that but mentioned something extremely important which is that theres a special break under these Debt Forgiveness plans for people going to work for nonprofits or the Public Sector. In effect, what biden and democrats are doing here are subsidizing the parties army right . I mean, most of the nonprofits are activist groups that will go out there an work own behalf of Climate Change and wokeness and rest of it Public Sector means people going to work for Teacher Unions or the public bureaucracies themselves. It is an outrage im sure this is exactly what barack obama had in mind when they nationalized Student Loan Processes during his administration and now come forward and theyre going to spend upwards of a trillion to create more democrats. And kim is this essentially political Insurance Policy just for biden case the Supreme Court throws this out by the way i think it will. It will claim that his forgiveness last year was illegal so this insurance against that . Yeah. Its two things its insurance paul i think i agree with you. Ting may get thrown out and remember this was dropped right before the election. It was meant to get Younger Voters onboard so this is an Insurance Policy that they can still dangle something. But you know what other that i think says paul is this is once again administration going around congress. Look, one of the things they wanted to do and biden build back better plan was maybe Community College free. And they didnt have the money to put in there and she knows way this is being crafted essentially will accomplish that goal for tens of thousands of americans but never with congress having any say. And alicia why doesnt, why dont democrats try to get this through congress if this is so popular. Why not take a vote and make republicans vote too . Well i think they know that it isnt popular especially among american working class Debt Forgiveness or making college free, again it is subsidizes to dans point the the progressive army. Going progressives going school basically in woke ideology thats why theyre not going to take a vote on it. Paul all right. When we come back, governor gavin newsom touting California Freedom and taking on his red state rivals as he begins his second term so why are so many golden state residents fleeing to florida and texas . Try boost glucose control®. Its clinically shown to help manage Blood Sugar Levels and contains high quality protein to help manage hunger and support muscle health. Try boost® today. For back pain, ive always been a take two and call in the morning guy. But my new doctor recommended salonpas. Without another pill upsetting my stomach, i get powerful, effective and safe relief. Salonpas. Its good medicine. Every search you make every click you take ill be watching you [narrator] the internet doesnt have to be so creepy, the duckduckgo app, lets you search and Browse Pria Blocking most trackers all forf your Search History is never tracked, so it cant be shared. And when you leave search, duckduckgo helps Keep Companies from watching you as you brows. Join tens of millions of people making the easy switch by downloading the app today. Duckduckgo, privacy simplified. Every search you make every click you take ill be watching you [narrator] the internet doesnt have to be so creepy, the duckduckgo app, lets you search and Browse Pria Blocking most trackers all forf your Search History is never tracked, so it cant be shared. And when you leave search, duckduckgo helps Keep Companies from watching you as you brows. Join tens of millions of people making the easy switch by downloading the app today. Duckduckgo, privacy simplified. Paul california has been well Freedom Force multiflyer taking root in state house, weaknesses masquerading strength small men in big offices more than any people in any place. California bridge historical expanse for freedom for some and freedom for all. Paul governor gavin newsom heralding california as the True Freedom State In A Second Inaugural Address while Taking A Vailed swipe at his red state rivals data from Census Bureau show fleeing from democrat led states for those run by republicans with florida and texas topping the list. Were back with our panel so kim, fill us in on the data here about the Migration Trends because doesnt sound like california is the mecca anymore at least for americans from other states. [laughter] yeah. The latest census data basically shows that youve got an exodus of people from new york, california, illinois, heading out and landing in places like florida, texas, north carolina, south carolina. And theres a couple of reasons for this. Probably crime also taxes, but i think the other thing to bear in mind here too paul is that folks are tired of all of these new rules and regulations that essentially crimp way theyre living this is happening even after Covid Lockdowns ended and people have to start going back to work. You know, alicia you followed these trends pretty closely. And is this accelerating this trend that migration trend or is it related to the pandemic . Or what . Well, i think you have seen an acceleration during the pandemic. It really started to take off early in the last decade where you saw more and more people flee california, new york, and illinois again toured to the states that kim mentioned. One interesting finding from this recent Stanford University study by joshua actually found that there was a big increase in migration from higher earners shortly after the big tax increase passed in the state and in 2012 there was another big increase again among higher earners in 2000, after 2017 after republicans capped the state and local income tax deduction. And there was a major increase in 2020, 10. 7 billion in adjusted income gross california org did the first year of the pandemic. And some of the that was higher earners but big increase among families with independent and going to states with more in school learning. And so again we get, we saw this big increase during pandemic and part of this is because people are moving states where theres more freedom and again lower cost of living. Both energy cost and Higher Energy housing, taxes, thats why people are moving there. One of the implications of this dan is that california despite its ruling in a lot of tax revenue from tech now has a 22 and a half billion dollar forecasted Budget Deficit for next fiscal year in contrast to texas which has more than 30 Billion Dollar surplus now there more special factors but astonishing to think california has a deficit, and one of the reasons is that they rely ironically on the rich to pay a huge chunk of their tax revenue and when, you know, Stock Market Falls and capital gain revenue so does california revenue. Exactly right. About the wealthier pay about 40 of californias tax revenues and let me first say gavin newsom speaking about california being a Land Of Freedom frankly i had no idea what he was talking about. [laughter] but he did he did Say Something on this point that was exactly right. He said the reason revenues are falling in california is because the state has such a progressive income tax. And when capital gainings are rising that revenues rise when they fall they fall. But that revenue is not just about the rich paul. As alicia was pointing out middle class people are leaving these states and as one of our editorials pointed out this week, california has a top marginal rate of about 9 which hits people making above 61,000 dollars man that is rough. 61,000 dollars. Getting whim a 9 tax rate, that is the reality in california and the further reality is that you have progressive legislators controlling california, illinois, new york, and this is not likely to change any time soon which means migrations will continue outward. Florida has a top rate of 13. 3 on income that 9 is on as you said the middle class that hits average earners so the rich get really rocked. Yeah, so kim the political implications here as these people move out, does that leave states like california and new york and illinois even more center left states and less likely to change with all of these voters moving out . Well, it depends on the course that they choose to take. I mean, they can continue to just let this hemorrhage happen or now weve seen some of these governors of states begin to acknowledge and even newsom did that their progressive tax rates are problematic for budget and they have people leaving. You know new york city mayor eric adams talking about this recently this is a problem people leaving and hurting tax base. So they also have the possibility of changing and maybe lure some people back im not hopeful, though. Paul theyre not going to do it one more break with wh we come back it is the misses of the week. Get refunds. 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Join the millions already taking ozempic®. Ask your Health Care Provider about the ozempic® trizone. We really dont want people to think of feeding food like ours is spoiling their dogs. Good, real food is simple. It looks like food, it smells like food, its what dogs are supposed to be eating. Time now for hits and misses of the week. Kim, first to you. Chris paul how to show that in Future Climate Agenda . A thread to take the gas does. My message to the Consumer Product Safety Commission which are briefly floated then walked back the idea that they might band and gas cook stoves, claims to do with safety, all based on some nonsense studies suggesting this might release Air Pollution and house. But lets be clear, this is part of the left agenda to get rid of natural gas for the toys the other governors now proposing that it other states. They are coming for your car. They are coming for your stove, beware. Trucks are right alicia . Is the ms. Chicago mayor Lori Lightfoot four years ago won reelection on anticorruption pledge. She promised to clean up chicago and restore ethics. Well, this week it was reported she asked a Chicago Public schools to get academic credit to students who went to volunteer for her campaign. Apparently she has learned the chicago way. Trucks are right, dan . My hip goes to something good that actually happened during joe biden summit in mexico. Prime minister trudeau of canada told mr. Biden the canadians would buy a 400 milliondollar Missile Defense system from the United States and send it to ukraine. Also this week sweden said it would send sophisticated howitzers to ukraine, poland is sending tanks. The United Kingdom is also announced its going to be sending tanks to ukraine. Our allies are helping us contrary to the views of some republicans we are not. Very much needs the help. Thanks you all. You have your own hit or miss beecher to tweet it to us thats it for this week show, thanks to my panel, thanks to all of you for watching. Hope to see right here next week. s before potential new heading for president by this weekend read special counsel to the president announcing today that five more pages of documents with classified markings were found at the president s wilmington, Delaware Home On thursday night. The new revelation only adding more questions about that stash of classified material. Found in a room next to his garage for the former office of his institute in washington. Hillary what i am eric shawn this is fox news live, heart arthel. Arthel hi eric hi

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