Stephen Moore Warns NY: 'Tax and Spend' Has Never Worked Economist Stephen Moore (Samuel Corum/Getty Images)
By Eric Mack | Sunday, 11 April 2021 10:56 AM
Democrats spend and tax in their states and cities and just do not learn from the "big mistake," or shining examples like Republican-run Florida, according Trump economist Stephen Moore.
"I'm just so horrified at what New York is done, raising their income tax rate to 15%," Moore told "The Cats Roundtable" on WABC 770 AM-N.Y. "I think it is a huge mistake. New York now has the highest tax rate in the United States.
"In some ways, New York is now one of the highest tax places in the world," Moore continued to host John Catsimatidis. "And that's just not a way to make a state or city competitive, especially when we're coming out of COVID. New York really did suffer from businesses being shut down, and now the taxes are going way up.
"I don't understand the logic of it."
Democrats should look no further than the state of Florida, which has no state income taxes, compared to 15% in New York, Moore said, adding President Joe Biden's "idea of raising the corporate tax is ill-advised."
"Americans are starting to understand that massive tax and spend is not a formula that's ever worked," Moore continued. "I hope Biden backs off of all this spending and taxing, because it's a story that will not have a happy ending.
"Short term, for the rest of the year, I'm bullish, but, John, if we pass all these spending bills we're going to have a real problem with the increase in debt to pay for all that spending."
The recent rise of the stock market is related to the reopening of business and the massive distribution of vaccines to Americans, Moore said.
"I call this the Operation Warp Speed rally, and it really is the vaccine that's been so widely distributed," Moore said. "Almost 4 out of 5 senior citizens now have been vaccinated in this country, which is amazing performance.
"And you compare that, by the way, with what's happening in Europe. Some of those countries are shutting down again in Europe, because they've done such a poor job with vaccine distribution.
"The United States [has] done a very effective job, both under Trump and Biden. That's been the main factor behind this huge rally, is the opening up of our businesses, getting Americans back to work."
Moore did warn, however, the unemployment benefits uptick has still worked to keep people from getting back to work,.
"One are the things we have to worry about is whether the workers will come back to work," Moore concluded. "We're paying people a lot of money and unemployment benefits and other welfare benefits to stay unemployed.
"In Florida you see 'help wanted' signs all over the place. There just aren't enough workers coming back yet to fill all the jobs."