1 00:00:02,759 --> 00:00:08,160 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, and. 2 00:00:08,240 --> 00:00:10,520 Speaker 2: We want to discuss taxes at the state level as 3 00:00:10,560 --> 00:00:13,600 Speaker 2: well as Maryland. Governor Wes Moore yesterday announced a budget 4 00:00:13,600 --> 00:00:16,600 Speaker 2: plan that includes two billion dollars in spending cuts and 5 00:00:16,720 --> 00:00:19,439 Speaker 2: tax hikes for those making over five hundred thousand dollars 6 00:00:19,480 --> 00:00:22,159 Speaker 2: a year, and Governor Moore is joining us now to 7 00:00:22,239 --> 00:00:25,919 Speaker 2: discuss Governor, welcome back to Bloomberg TV and radio. The 8 00:00:26,000 --> 00:00:28,480 Speaker 2: rates we're talking about here six and a quarter percent 9 00:00:28,560 --> 00:00:30,800 Speaker 2: tax on those making over half a million, at six 10 00:00:30,840 --> 00:00:32,880 Speaker 2: and a half for over a mill And you've pointed 11 00:00:32,880 --> 00:00:35,760 Speaker 2: out that some eighty percent of Marylanders will either actually 12 00:00:35,800 --> 00:00:38,040 Speaker 2: see a tax cut or see no increase at all. 13 00:00:38,080 --> 00:00:40,240 Speaker 2: But for those who are going to experience a hike 14 00:00:40,280 --> 00:00:43,240 Speaker 2: if this plan goes forward, how do you pitch this 15 00:00:43,720 --> 00:00:45,960 Speaker 2: to them as a democratic governor knowing it might be 16 00:00:46,080 --> 00:00:49,760 Speaker 2: contrasted with at the federal level, a Republican president pursuing 17 00:00:49,800 --> 00:00:50,440 Speaker 2: tax cuts. 18 00:00:50,880 --> 00:00:53,559 Speaker 1: Yeah, it's great to be at the Kaylee. And you know, 19 00:00:53,800 --> 00:00:56,880 Speaker 1: and I think about the budget that I introduced really 20 00:00:56,920 --> 00:00:59,880 Speaker 1: had three north stars that we're focusing on. One is 21 00:00:59,880 --> 00:01:03,279 Speaker 1: is that we had to prioritize cuts. We have two 22 00:01:03,440 --> 00:01:06,520 Speaker 1: billion dollars worth of cuts. And I had to be 23 00:01:06,640 --> 00:01:09,800 Speaker 1: very strategic and very sober about this because the lens 24 00:01:09,880 --> 00:01:12,520 Speaker 1: I was looking at was that the programs either had 25 00:01:12,560 --> 00:01:16,959 Speaker 1: to be both effective and efficient and sustainable. If they 26 00:01:16,959 --> 00:01:20,000 Speaker 1: were not effective and sustainable, they were going to be cut. 27 00:01:20,040 --> 00:01:21,840 Speaker 1: So we had to take a really hard lens on that. 28 00:01:22,080 --> 00:01:24,240 Speaker 1: The second piece was we had to do a better 29 00:01:24,319 --> 00:01:27,120 Speaker 1: job of modernizing government, and that was getting our systems 30 00:01:27,120 --> 00:01:29,520 Speaker 1: in place, making sure government is more efficient in the 31 00:01:29,560 --> 00:01:31,800 Speaker 1: way that we did our work. And that alone is 32 00:01:31,840 --> 00:01:35,479 Speaker 1: going to cut fifty million dollars and save fifty million 33 00:01:35,520 --> 00:01:38,119 Speaker 1: dollars to Maryland this year alone. And the third piece 34 00:01:38,240 --> 00:01:41,000 Speaker 1: was we had to reform our tax code. And when 35 00:01:41,040 --> 00:01:43,360 Speaker 1: I talk about reforming the tax code, we now have 36 00:01:43,440 --> 00:01:45,640 Speaker 1: two thirds of Marylanders are actually going to receive a 37 00:01:45,680 --> 00:01:48,560 Speaker 1: tax cut. Eighty two percent are either going to receive 38 00:01:48,920 --> 00:01:51,200 Speaker 1: a tax cut or no change at all. That we 39 00:01:51,240 --> 00:01:54,440 Speaker 1: are lowering the corporate tax rate, that we are eliminating 40 00:01:54,520 --> 00:01:57,520 Speaker 1: the inheritance tax and making it more making easier for 41 00:01:57,560 --> 00:01:59,360 Speaker 1: businesses to be able to come and grow and stay 42 00:01:59,360 --> 00:02:03,040 Speaker 1: in Maryland because we're prioritizing things like regulatory form and 43 00:02:03,120 --> 00:02:06,480 Speaker 1: permitting reform and So this was about growth because the 44 00:02:06,520 --> 00:02:09,840 Speaker 1: biggest challenge we're facing as a state was that while 45 00:02:09,840 --> 00:02:13,480 Speaker 1: our budgets grew by seventy percent in the seven years 46 00:02:13,480 --> 00:02:16,760 Speaker 1: before I became the governor, our GDP grew by three 47 00:02:17,320 --> 00:02:19,800 Speaker 1: and so we were spending, but we weren't growing. So 48 00:02:19,880 --> 00:02:22,239 Speaker 1: by being able to, by being able to focus on 49 00:02:22,280 --> 00:02:24,079 Speaker 1: these issues, we're able to grow our economy. 50 00:02:24,440 --> 00:02:26,640 Speaker 3: Boy, Governor, you know you're on bloomberg when we start 51 00:02:26,639 --> 00:02:29,360 Speaker 3: a conversation like this. You've been with us since the 52 00:02:29,360 --> 00:02:31,560 Speaker 3: beginning on balance of power, and it's great to have 53 00:02:31,600 --> 00:02:34,920 Speaker 3: you back today. And we've watched the tax debate evolve 54 00:02:34,960 --> 00:02:36,800 Speaker 3: a lot in that period of time, when you go 55 00:02:36,880 --> 00:02:40,320 Speaker 3: back to twenty seventeen, certainly and now through the Biden administration, 56 00:02:40,400 --> 00:02:43,480 Speaker 3: and this debate that we're experiencing right now is Donald 57 00:02:43,520 --> 00:02:47,120 Speaker 3: Trump takes office to extend the twenty seventeen tax cuts. 58 00:02:47,320 --> 00:02:50,440 Speaker 3: We're also talking about no tax on tips, no tax 59 00:02:50,520 --> 00:02:53,840 Speaker 3: on overtime, so many other items, including salt. You have 60 00:02:53,880 --> 00:02:56,120 Speaker 3: a workaround in your state when it comes to salt. 61 00:02:56,160 --> 00:02:58,000 Speaker 3: I'm wondering if all of this is designed to get 62 00:02:58,000 --> 00:03:01,000 Speaker 3: ahead of what's about to happen, and Watchhington. 63 00:03:01,200 --> 00:03:02,840 Speaker 1: Well you know, one thing that we know is that 64 00:03:02,880 --> 00:03:06,320 Speaker 1: what happens in Washington does impact what happens to us 65 00:03:06,400 --> 00:03:10,079 Speaker 1: on the state level. That you know that Washington is 66 00:03:10,120 --> 00:03:12,680 Speaker 1: the only place that can print money, but that I 67 00:03:12,760 --> 00:03:15,120 Speaker 1: know that this year, not only did I introduce a 68 00:03:15,160 --> 00:03:17,560 Speaker 1: balanced budget for the third year in a row, I 69 00:03:17,639 --> 00:03:21,760 Speaker 1: plan on passing a bipartisan balanced budget in my state. 70 00:03:22,040 --> 00:03:24,320 Speaker 1: That where that we know that the work that happens 71 00:03:24,360 --> 00:03:27,040 Speaker 1: in Washington does have direct impacts on us. And so 72 00:03:27,080 --> 00:03:30,160 Speaker 1: as this new administration comes on board, I know that 73 00:03:30,240 --> 00:03:33,600 Speaker 1: I am prepared to find common ground with this administration. 74 00:03:33,720 --> 00:03:36,320 Speaker 1: That We've introduced twenty six bills since I've been the 75 00:03:36,320 --> 00:03:38,480 Speaker 1: governor of the state of Maryland. We have gone twenty 76 00:03:38,480 --> 00:03:40,280 Speaker 1: six for twenty six, and we've gone twenty six for 77 00:03:40,360 --> 00:03:44,280 Speaker 1: twenty six bipartisan, with both Democrat and Republican support on 78 00:03:44,480 --> 00:03:47,200 Speaker 1: every single bill that we have introduced. We know how 79 00:03:47,240 --> 00:03:49,160 Speaker 1: to work across the lines. We know how to get 80 00:03:49,200 --> 00:03:52,480 Speaker 1: things done together, and on places where we can find 81 00:03:52,480 --> 00:03:55,080 Speaker 1: common ground with this new administration, we will. And on 82 00:03:55,160 --> 00:03:57,560 Speaker 1: places that we that I you know, we feel that 83 00:03:58,160 --> 00:04:00,360 Speaker 1: there is a need to push back, we'll do that 84 00:04:00,440 --> 00:04:02,880 Speaker 1: as well. But we're entering into this new phase in 85 00:04:02,920 --> 00:04:03,920 Speaker 1: a spirit of partnership. 86 00:04:04,840 --> 00:04:07,560 Speaker 2: Well, so as you kind of discuss two dynamics here, 87 00:04:07,600 --> 00:04:10,280 Speaker 2: being a partner in some sense to an incoming administration 88 00:04:10,360 --> 00:04:13,240 Speaker 2: and also being a foil to it as a governor 89 00:04:13,320 --> 00:04:15,680 Speaker 2: of a blue state, which one do you think is 90 00:04:15,720 --> 00:04:17,080 Speaker 2: going to take greater precedents. 91 00:04:18,040 --> 00:04:20,719 Speaker 1: Well, I'm very clear that you know I am not 92 00:04:20,800 --> 00:04:23,000 Speaker 1: the leader of their resistance. I'm the governor of Maryland. 93 00:04:23,560 --> 00:04:25,840 Speaker 1: The people elected me to represent the six and a 94 00:04:25,839 --> 00:04:28,359 Speaker 1: half million people of this state and making sure that 95 00:04:28,400 --> 00:04:31,000 Speaker 1: their dreams and their aspirations were going to be invested 96 00:04:31,000 --> 00:04:33,920 Speaker 1: in and supported in, and their freedoms and their rights 97 00:04:33,920 --> 00:04:36,960 Speaker 1: were going to be protected. And so we will work 98 00:04:37,120 --> 00:04:40,400 Speaker 1: with anybody to be able to ensure that Maryland is 99 00:04:40,440 --> 00:04:43,520 Speaker 1: able to have safer streets and that Maryland can have 100 00:04:43,640 --> 00:04:47,080 Speaker 1: a growing economy, and that Maryland can have quality infrastructure 101 00:04:47,080 --> 00:04:50,200 Speaker 1: and the best public schools in America. And you know, 102 00:04:50,240 --> 00:04:52,320 Speaker 1: it's the same way that you know, before I ever 103 00:04:52,400 --> 00:04:54,920 Speaker 1: ran for office, I was I was in the business world, 104 00:04:55,000 --> 00:04:57,360 Speaker 1: and I was an army officer. And we were very 105 00:04:57,360 --> 00:04:58,920 Speaker 1: clear when I was at seventeen years old and I 106 00:04:59,000 --> 00:05:01,440 Speaker 1: joined the army, I learned a fore leave no one behind. 107 00:05:01,800 --> 00:05:04,960 Speaker 1: And that still is that is still my metric about 108 00:05:04,960 --> 00:05:06,720 Speaker 1: whether or not I'm doing my job now, even as 109 00:05:06,720 --> 00:05:07,560 Speaker 1: the governor of Maryland. 110 00:05:08,560 --> 00:05:12,320 Speaker 3: You know, we heard Governor Greshen Whitmer from Michigan speaking 111 00:05:12,440 --> 00:05:15,040 Speaker 3: yesterday about the idea of trying to reach across the 112 00:05:15,080 --> 00:05:18,080 Speaker 3: aisle find common ground work with this incoming administration. The 113 00:05:18,120 --> 00:05:20,880 Speaker 3: fact of the matter is governors don't have a choice, 114 00:05:20,960 --> 00:05:24,360 Speaker 3: right you have something in common with mayors, your executives, 115 00:05:24,400 --> 00:05:26,599 Speaker 3: and you have to work with the Trump administration. So 116 00:05:27,279 --> 00:05:30,520 Speaker 3: what's your opening shot, what's your message to Donald Trump 117 00:05:30,560 --> 00:05:31,559 Speaker 3: to get the ball rolling. 118 00:05:33,000 --> 00:05:35,920 Speaker 1: Our message is this is that if you can work 119 00:05:35,960 --> 00:05:38,640 Speaker 1: with their states and our states executives, I can tell 120 00:05:38,640 --> 00:05:40,400 Speaker 1: you right now that we'll be able to produce the 121 00:05:40,480 --> 00:05:44,080 Speaker 1: kind of results that are the people in our states 122 00:05:44,120 --> 00:05:45,880 Speaker 1: that they hope for. You know, I think about what's 123 00:05:45,880 --> 00:05:48,600 Speaker 1: happening in the state of Maryland where you know, when 124 00:05:48,640 --> 00:05:51,400 Speaker 1: I was first elected, Maryland was forty third in the 125 00:05:51,400 --> 00:05:55,560 Speaker 1: country in unemployment. We're now going on fourteen straight months 126 00:05:55,760 --> 00:05:58,880 Speaker 1: of amongst the lowest unemployment rates in the entire country. 127 00:05:59,200 --> 00:06:01,800 Speaker 1: That when I was an augurated that Maryland had gone 128 00:06:01,880 --> 00:06:04,039 Speaker 1: eight straight years where we saw eight year period, the 129 00:06:04,040 --> 00:06:08,080 Speaker 1: homicide rate in Maryland had nearly doubled Baltimore City when 130 00:06:08,160 --> 00:06:11,640 Speaker 1: eight straight years of three hundred plus homicides. Now, two 131 00:06:11,720 --> 00:06:14,359 Speaker 1: years into our administration, we've now seen some of the 132 00:06:14,440 --> 00:06:18,359 Speaker 1: fastest drops in homicides and violent crime anywhere in the 133 00:06:18,400 --> 00:06:21,400 Speaker 1: country here in the state of Maryland. And so the 134 00:06:21,440 --> 00:06:23,160 Speaker 1: message that I really want to have to the new 135 00:06:23,160 --> 00:06:26,960 Speaker 1: administration is when we're able to work together and we're 136 00:06:27,000 --> 00:06:29,719 Speaker 1: able to have partnership, the partnership produces progress, and I 137 00:06:29,720 --> 00:06:33,240 Speaker 1: think it's progress that the American people that they hoped for, 138 00:06:33,440 --> 00:06:36,200 Speaker 1: that they voted for, and that they expect from leaders 139 00:06:36,240 --> 00:06:37,320 Speaker 1: who are sitting in these seats. 140 00:06:38,600 --> 00:06:41,200 Speaker 2: Governor, we just have a minute left. But obviously Baltimore 141 00:06:41,240 --> 00:06:43,640 Speaker 2: experienced a disaster last year with the collapse of the 142 00:06:43,720 --> 00:06:46,240 Speaker 2: Key Bridge. Federal funding for that finally came through at 143 00:06:46,240 --> 00:06:48,520 Speaker 2: the end of last year. I'm sure you're well aware 144 00:06:48,560 --> 00:06:53,360 Speaker 2: there is now a conversation about putting conditions around aid 145 00:06:53,440 --> 00:06:56,640 Speaker 2: for California as at grapples with the aftermath of fires. 146 00:06:56,680 --> 00:06:58,920 Speaker 2: What would you say to those who are advocating for 147 00:06:59,080 --> 00:06:59,880 Speaker 2: conditions on aid. 148 00:07:00,400 --> 00:07:04,240 Speaker 1: You know, I'm never going to forget that first morning 149 00:07:04,480 --> 00:07:07,680 Speaker 1: of when the key Bridge collapsed, and when I saw 150 00:07:07,800 --> 00:07:10,640 Speaker 1: thirteen percent of my economy shut down, you know, when 151 00:07:10,680 --> 00:07:13,480 Speaker 1: I had six Marylanders we lost, and was trying to 152 00:07:13,480 --> 00:07:16,680 Speaker 1: console those families. And the thing that I wanted to 153 00:07:16,720 --> 00:07:19,600 Speaker 1: do that morning, that we continue to do was center 154 00:07:19,720 --> 00:07:24,400 Speaker 1: on humanity and center on working together. That every single 155 00:07:24,400 --> 00:07:26,360 Speaker 1: one of our press conferences that we had, every single day, 156 00:07:26,400 --> 00:07:28,560 Speaker 1: we were with the mayor. We were with our federal leaders, 157 00:07:28,600 --> 00:07:31,480 Speaker 1: the Navy, the Coast Guard, the Army, Corps of Engineers, 158 00:07:31,760 --> 00:07:36,320 Speaker 1: our federal delegation, Democrats and Republicans. We were with everybody united. 159 00:07:36,680 --> 00:07:40,320 Speaker 1: And in these times of tragedy, what people are hoping 160 00:07:40,360 --> 00:07:42,120 Speaker 1: for is that we can have a sense of unity 161 00:07:42,160 --> 00:07:44,240 Speaker 1: in the way that we recover and in the way 162 00:07:44,280 --> 00:07:47,960 Speaker 1: that we rebuild. And so I would urge as California, 163 00:07:48,400 --> 00:07:50,520 Speaker 1: and I know I reached out to Gavin and the 164 00:07:50,520 --> 00:07:53,280 Speaker 1: folks California that first morning. The thing that I would 165 00:07:53,320 --> 00:07:56,280 Speaker 1: hope for them is that everybody who especially has to 166 00:07:56,360 --> 00:07:59,160 Speaker 1: vote on this, go to California and see it for yourself, 167 00:07:59,520 --> 00:08:02,080 Speaker 1: see the York see the need, and then go out 168 00:08:02,160 --> 00:08:04,000 Speaker 1: and make the right decisions on behalf of the people. 169 00:08:05,400 --> 00:08:07,520 Speaker 3: It's great to have you back Governor. That's Wes Moore, 170 00:08:08,000 --> 00:08:09,040 Speaker 3: the governor of Maryland. 171 00:08:09,400 --> 00:08:09,600 Speaker 1: Thank you. 172 00:08:09,720 --> 00:08:12,200 Speaker 3: Let's stay close as this new year unfolds.