Cahill talks state finances amid launch of independent bid for governor

[1:38] ..." than last year which was really a market in. You know on Wall Street meltdown we could have stayed -- all across the country because of the same situation that we're facing in Massachusetts."...

[3:56] ..." back to stop printing and start leading these companies like. Citibank and Bank of America and fitting for any. To go to their own. You know to their own means because we do need to capitalistic. System"...

[6:42] ..." here in Massachusetts. I'm but it is frustrating when -- actors like Ben Affleck -- making movies in Massachusetts buying multi million dollar house is in California with money he's taking. It -- stay here I"...

[8:47] ..." was infrastructure investment we built 120 and it became a Mecca for high tech industry. So I think investments in infrastructure and again investments and workforce training and education that we -- have that. Educated work"...

[13:02] ..." my life I did it to ten years with two friends from high school sweetheart a bunch of people. Part time most of them but it was really great experience had taught me a lot about"...

[0:18]" What concerns me more now and this is election we did we had. Going into last year is we don't have two point three billion dollars in stabilization money. We -- not going to be able to rely on the stimulus money because we're burning through it and much faster clip it's supposed to last three fiscal years will be lucky for last. To this fiscal year which is only two. -- and what happens in 2011. The next budget that we set that no reserves. And that will eventually trickle down to affect our credit rating because the agencies will see you in the reserves. No stimulus money. And possibly unwillingness to face reality. We have less revenue in Africa spent. Because as we were already seen the tax increases that have been imposed over the last two fiscal years have not -- in the revenue. Because people changed your spending habits if they feel like they're overtaxed. And we're seeing it now with the sales tax it's not coming in. As robustly as it was projected I think with 900 million was the initial figure than it was 750 may commit less than 500 million. Because people are just not BK at the middle class can't spend as much money and when you're. Asking the pay more taxes date and cut back on spending so it remains to be seemed but I do agree with -- would secretary current net this year. From a fiscal point of view. May be more difficult than last year which was really a market in. You know on Wall Street meltdown we could have stayed -- all across the country because of the same situation that we're facing in Massachusetts."

[2:08]" Unfortunately I do. And I don't wanna be pessimistic about it but. You know all indications it even if the recession has ended or or is an end soon. We are still -- we have between nine and 11% of unemployed in this country and probably the unemployment grow in the state. Because it tends to -- And the biggest problem -- that is personal income tax is still the biggest generator of revenue for the state people aren't working not only are they spending but they're not paying taxes. And that in and they're also taking services that taking an appointment to taking food stamps to trying to survive it gave -- from the social net and on adding. Not helping us and our ability to replenish it. So I do think it's gonna get worse from a revenue point of view. Before it gets better I think from a macro point of view the markets have stabilized. I think the banking industry -- not healthy. Is better position than it was last year so I don't think we'll have any these freeze ups of these policies bankruptcies going forth. But at some point the government is gonna have to pull out. We can't prop up the -- we can't prop up the agencies and we can't prop up states Europe. Because there is a limit on the federal level how high can adapt to go how much debt and federal government. Keep printing. We don't want all all of our lives to China. Who with you really one of the few -- really one of the few countries that still buying it. I'm so I think there is going to be a point where this with the federal government is gonna have to slow things down or to stop. The presses. And we need to be positioned for that and not reliant. On the federal government so it's going to be very tricky I hope that. The Fed Chairman Ben Bernanke. Is able to. Figure out exactly the timing to pull back to stop printing and start leading these companies like. Citibank and Bank of America and fitting for any. To go to their own. You know to their own means because we do need to capitalistic. System to work to. Fuel the growth of the economy nationally. So it's gonna be tough and and I don't think again. The money war the political Willis going to be here for the federal government to continually. Try to bail out and on the food chain with current downstream. -- then what happens there -- cities and towns a further downstream. And it trickles down that way so again getting ahead of it is important keeping our credit rating is vital to us. And in being willing to make tough decisions early. Will lead to easier and better decisions later."

[5:10]" When it right what would you do differently well I support the effort I am concerned when government starts picking industries. And deciding this is the favored industry whether it's the film industry. Well life sciences in patients it would put our money here and and ignores that. So that swath in the middle financial services I think is a tendency and it certainly has been the practice of this administration to really pick the winners and losers. As opposed to just level the playing field that's by. Sort of flies to level the playing field low taxes on everybody not just our favorite industries. And and let them compete and grow jobs because they were really enough jobs and rights act like scientists to bring our economy back. And I believe that we need a mixture of white collar and blue collar jobs construction industries very important so we need to in. Two incentivized housing growth and shopping mall growth and apartment buildings and things that port construction workers back to work and we need. Really too you know I think it's and a -- homeowners to go back and and on the house is the things that really drove the economy in the early years of this decade I think really is what we need to focus and I'm off for trying to help industries. -- but I think at the end of the day. You're sometimes just throwing good money after bad in some of the -- of this administration to prop up renewable energy companies like evergreen. I'm have not met with great success and it at the end of the day which store money away reckoning that a -- for filming movies here in Massachusetts. I'm but it is frustrating when -- actors like Ben Affleck -- making movies in Massachusetts buying multi million dollar house is in California with money he's taking. It -- stay here I would be off for it and -- am supportive of the general concept but it does can show you what tax cuts do. They spur growth. And we have an incentive. Kind of weird look we we will give tax cuts and tax incentive to certain industries. But there will raise taxes and have announced the balanced the books when I think we should look all across. The economy into the middle class especially who at the end of the day really drive this economy. -- the once it via the highest burden when taxes -- lot. So lowering. And consumption based tax like the sales tax they think is is a better strategy. In trying to pick and choose which industry you want to grow in the future you think the legislature should repeal now. I think they should look at it mean if we're looking at cutting social service spending if we're looking at cutting back on health care. I think it's hard to argue that we should be giving money -- to film. The film industry giving money to -- life sciences industry that's due date has been doing very well at all. And I think we have advantages here in life sciences and -- with Cambridge and Harvard and in my -- BU. That we may not have to really incentivized that because it's here the work forces here. And and I think the economy suited for those types of industries without us subsidizing."

[8:28]" I understand that I I wonder if it's a chicken the -- you know whether we would become we could have become an and we were Silicon Valley before silicon -- who -- we with the information highway. And I don't believe remember it was around us -- I don't believe it was it was born from government subsidy. What helped was infrastructure investment we built 120 and it became a Mecca for high tech industry. So I think investments in infrastructure and again investments and workforce training and education that we -- have that. Educated work with the people come into but the two. Combine that with high tax rates -- business taxes. I think it's counterproductive and that will in the end of the day -- forcing people to move out of Silicon Valley because of the high tax rates in California. So I agreed at that you know high techies is great and health care's if very very important to the economy here. But the advantage is we are you have in those industries. I think maybe should make us think twice about whether we should add. You know tax incentives from what I understand we've got close to a billion dollars in tax credits. Are ready to -- industries in this state going back a decade. Take -- billion dollars. -- You -- you brought it back you would not have to raise the sales tax which means you have a low tax that you could then cut may be income taxes at that point on everyone. Two when they do come back to work in May -- at once and -- companies to hire more people because again the taxes we. -- on people often even if it's on companies aren't utilities generally get pushed back for the consumer and makes it harder for them to spend money. -- for a two things lowering income tax and possibly cutting sales tax would you wanna see those acted on in the fall maybe. Well in a perfect world yeah I don't think -- well I don't think we will maybe next fall maybe the follow after -- again and I think sort of that's mighty. Sort of way of preparing ourselves for the upswing it's hard medicine because you're gonna cut taxes you'll -- less revenue initially. But if you can hold. In the short term you'll see long term growth and it happens everywhere and I don't I think it's indisputable. And for even the people who believe that higher taxes don't. Make businesses leave the state. -- the proof is in the -- why we then giving tax subsidies. To certain companies if it doesn't help so but you have to be more patient -- in you don't get to go on cut ribbons and you know preside -- grand openings when you're just giving broad based taxes so for politicians like myself. It may not be popular just have broad based tax cuts as opposed to targeted tax cuts. But I think it makes better economic sense and a better economic policy in the long gone askew. -- major formal announcement reaction if you. I've got a great reaction. I don't -- its people tell me when I wanna hear but so far it's been phenomenal. In terms of the response to people. To the message are bringing out witches low taxes and -- folks on trying to help the middle class and saw problems in government by. Even more so to the independent run and the people really are fed up with. Sort of the fringes of both parties for the driving the debate. So the people in the middle of those parties are on the fringes sort of in the middle. Moderate Democrats and conservative moderate Republicans and conservative Democrats feel less free. To state their opinions and -- ago against the flow of their party are really seemed to be. Taken with the idea of an independent centrist. Try to run for governor and and navy being successful you think you benefiting from all of the disgust -- what's going on. I think so I mean I think it's been going on. On the hill for awhile it's also been happening in Washington I think even as health care debate right now he's he's sort of driving instead of driving people together it's really seems to be driving them apart. And and and I think what it comes down to is is is people are comfortable with government taking on to greater role. In a personalized in the economy is always been a balance here and it's an uneasy balance to two to capture. But an independent candidacy for governor media is the way caption that out with government plays a role but not too big a role. And we still leave enough money in people's pockets so that they can make their own decisions and start their own businesses and I mean I start my own business in a recession back in 1982. And I did it because it -- job out of college. In it was the best experience my life I did it to ten years with two friends from high school sweetheart a bunch of people. Part time most of them but it was really great experience had taught me a lot about the good and the bad in the struggle of starting a business but. I think that is still the key to our success is not trying to help big companies. Are more people but really try to help small individuals start those small companies that -- could someday be big companies."