they're fleeinthe state. it has become an entitlement state.l: i was justn california, and for some reason i still saw a lot of people there. it's beautiful. i take nothing away from the state, but when you are a businessman and hear what is going on, the shifting around, if you had your choice and d not know where to move to, looking at california, texas, all i know is that california is a mishmash of various taxes, excise fees, so many things. my accounts will be up 24 hours is trying to figure out. >> the strongest part of the u.s. economy in rect years has been a tight economy which has been based in large part in california. start-ups all the time. neil: a lot more in taxes. >> this idea that california is not cutting spending. they have draconian spending cuts under governor brown and it has raised taxes. and now have a balanced budget. this is a good example of what the fedel government needs to do. neil: wait a minute. you're using california as a example? >> once upon a time before we had a strong republicans the way you banced budgets