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Appearances: Varney & Co. – Economic Incentives for Americans to Leave High-Tax States; United

Yesterday on Varney & Co., Andy weighed in on the recent Forbes list of America’s fastest-growing cities, which reveals that seven of the top 10 are in mostly low-tax and no-tax red states. He notes that states desperate for cash like California and New York will suffer because they are unable to lower taxes due to massive unfunded liabilities such as public pension funds. “People are going to leave because their economic incentive is to leave,” argues Andy. “Most of California’s revenue comes from personal income tax, which is a big problem for the state.”

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Also discussed was United Airlines’ bizarre plan to eliminate quarterly performance bonuses for its employees, and replace them with a lottery program. “You give people performance bonuses for two purposes: one, you want to keep your best performers; two, you want to incentivize everybody to try and be a better performer,” noted Andy. “What incentive would you have to be a top performer if you didn’t have any better chance of getting a bonus than anybody else? This is a terrible idea.”

Lastly, Andy said that Delta’s firm move to cut ties with the NRA in the wake of the school massacre in Florida is completely off message and almost a reflexive reaction. Delta is a company that appeals to, and competes for, every American citizen who wants to fly. “By making this decision, they are alienating a huge number of potential customers,” continued Andy.

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