Valuetainment - May 24, 2026


＂$928 Million To Nonprofits＂ - Steve Hilton NUKES Newsom's $425 Billion SCAM

Hosted by
Patrick Bet-David
Mentioned
Milton Friedman Katie Porter Tuscaneiro
＂Don't Pretend It'll Solve The Problem＂ - Jeff Bezos DISMANTLES Mamdani's Tax The Rich Agenda ＂They CONTROL The Politicians＂ - Steve Hilton EXPOSES Who’s REALLY Running California

Episode Stats


Length

12 minutes

Words per minute

175.18

Word count

2,158

Sentence count

93

Harmful content

Misogyny

5

sentences flagged

Toxicity

2

sentences flagged

Hate speech

2

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

In this episode, we talk to California Gov. Gavin Newsom about his proposed budget for the upcoming session of the California General Assembly. We talk about how he would like to reduce taxes for those making less than $100,000, flat tax rates, and eliminate the 13.4% flat tax.

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Toxicity classifications generated with s-nlp/roberta_toxicity_classifier .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
Hosts, guests, and mentioned names generated with spaCy (en_core_web_sm), reconciled against Wikidata.
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00:00:30.000 You said you want to lower taxes for those making under $100,000 to zero, okay?
00:00:35.980 So I want to read some of these numbers up.
00:00:37.600 State income taxes, which is a good amount to zero.
00:00:40.800 So I looked up with Rob and I what percentage of Californians make less than $100,000.
00:00:46.420 That's about 70% to 75% make under $100,000.
00:00:51.760 And I said, tell me how much revenue the government collects from these folks, which is mainly the 17 to 75 percent that make less than $100,000.
00:01:02.700 It's about $12.5 billion to $25 billion, low, high on how much income revenue they collect.
00:01:08.540 So your policy will eliminate that. 0.99
00:01:10.680 By the way, that's not a controversial policy because Katie Porter duplicated you. 1.00
00:01:14.060 Other people want to do the idea that you impose. 1.00
00:01:15.820 Let's go to the next one.
00:01:16.600 Then you want to lower the 13.3 to 14.4 that they have right now to seven and a half flat tax, which is a flat tax that you're introducing, which a lot of people that are independent, libertarians, Republicans would say, hey, we love the idea of a flat tax, right?
00:01:31.160 Milton Friedman, this has been talked about.
00:01:32.940 If you cut the tax, flat tax, you end up taking the revenue that they're collecting, about $120 to $129 billion of revenue from income tax, they lose another $65 billion.
00:01:44.860 Yeah, that's our numbers.
00:01:46.040 So if we go and we eliminate under $100,000 and then you lower the $13,300 to $7,500,000, you lose another $60 to $65 billion.
00:01:56.600 So now you've got $75 billion of revenue that's gone, give or take.
00:02:01.920 Where are you going to take the $75 billion away?
00:02:04.040 It's interesting because our number was 60.
00:02:05.520 I did some basic costings just like that.
00:02:09.680 with um i was for a while when we moved here uh 2012 i was at stanford teaching at stanford for
00:02:15.560 a couple of years and i was also a fellow at the hoover institution so i worked with some of the
00:02:18.860 people i knew there some of the economists to do a basic costing and our number was i think 65
00:02:23.620 billion for the whole package so was that 10 years ago it was last year oh it's last year so if you
00:02:29.480 do less than 100 so we so that's that it's right it's a big it's a big number and the other the
00:02:34.140 other way of looking at it was i remember when we did the math this is last year we have we haven't
00:02:38.720 actually updated it for this year's budget but when i because i didn't want to say something
00:02:42.160 crazy and unrealistic of course yeah but by the way this is a great idea but where does that money
00:02:47.080 what takes a hit so we had a we had a revenue reduction of 18.5 percent that was that was
00:02:52.980 at the time when we did that costing for last year's numbers that was roughly what it was
00:02:57.840 and and here's the way i put it this is not some crazy thing this is taking the budget back just
00:03:04.620 a couple of years to roughly what it was before the pandemic. Remember, they've nearly doubled
00:03:09.540 the budget. The budget this year that Newsom submitted, $350 billion. Can you go to California,
00:03:17.100 budget lasts 10 years? It was $180 billion not that long ago. It depends where you look at it.
00:03:23.580 Yeah, there you go. So it went from 2017, 2018, $124 billion to $250 billion.
00:03:28.480 That's the general fund. And then there's these other, the total budget includes these special
00:03:31.780 funds bond and things like that so you get 350 billion is the total so i think the the comparison
00:03:37.940 is 180 to 3 and nearly doubled 180 billion what should he put there so we can look at that instead
00:03:43.220 of saying general total budget put total budget rob total budget there you go so 350 billion is
00:03:55.660 what they proposed this year and you go to 2017 2018 177 billion exactly doubled in less than 10
00:04:02.300 years right and everything's worse i mean really that's not an exaggeration some political statement
00:04:07.940 everything's worse you mentioned homelessness you could get run down the list um i mean i don't even
00:04:13.300 want to do it now because i want to get to this point about the budget in other words it's just
00:04:16.520 bringing it back to some level of sanity um so there's a there's a general point that they've
00:04:21.860 double the budget and everything's worse surely we can do better getting specific about it the
00:04:27.620 first place you look of course is this phrase that's become very well known rightly so fraud
00:04:33.860 waste and abuse when you get specific so at the beginning of this year i set up something basically
00:04:41.820 as part of our campaign it's a volunteer thing it's not an official we're not i'm not elected
00:04:45.820 yet cal doge california department of government efficiency borrowing the um borrowing the uh
00:04:52.880 exactly so so we we um set that up that there you are and so we've done a number of fraud reports
00:05:04.360 and there's a couple of specific ones we can get into but i'll start with the total we made an
00:05:10.680 estimate our fourth fraud report was an estimate of the total fraud waste and abuse in the last
00:05:17.040 five years we looked at it over five years because these programs often have that kind of lengthy
00:05:22.120 characteristic to them our estimate based on published data so a combination of things like
00:05:26.340 the state auditor report that says 24 billion dollars of homelessness spending was wasted
00:05:30.660 um medical error rates etc etc we looked at all this published data our estimate for the total
00:05:36.800 was $425 billion in the last five years.
00:05:40.600 80 billion a year, 85 billion a year.
00:05:42.920 Yeah, roughly, exactly.
00:05:44.240 About 20% of the budget.
00:05:46.800 And so...
00:05:48.120 Got it.
00:05:49.240 That's where you start.
00:05:50.860 But of course, here's another example.
00:05:53.060 One of the things on the debates,
00:05:54.440 you may have seen some of these exchanges,
00:05:56.860 I've called for suspending the gas tax
00:05:59.600 and over time, reducing it.
00:06:01.700 We have the highest gas tax in the country,
00:06:03.800 the worst roads in the country.
00:06:05.440 Another classic.
00:06:05.980 71 cents another the 63 it's just gone from 61 to 63 the gas tax gas tax in california yeah so
00:06:13.840 can you type in top 10 gas highest gas taxes in america by state so it's amazing what california
00:06:20.760 yeah it looks like he's going to be my opponent in the general election 71 cents oh that must be
00:06:26.720 including something yeah trust me i'm trying to help californians so much that i follow the
00:06:32.440 numbers super closely yeah why would i think 61 to 63 that's maybe it's better it's higher now so
00:06:37.580 it could raise in the last 24 hours yeah um he always says this steve if you cut the gas tax
00:06:45.120 how are you going to pay for roads because that's where it's supposed to go well first of all we
00:06:49.600 have the highest gas tax and the worst roads on one some of the measures on one measure we're 49th
00:06:54.620 out of 50 on roads there's another where we're 50th um i was talking to a contractor i talked
00:06:59.800 to business owners the whole time she this lady runs a big company doing public works construction
00:07:04.760 builds literally builds roads she told me it they operate in multiple states it costs four times as 1.00
00:07:12.260 much to build the exact piece of road in california as in texas four times as much so that's not what
00:07:19.900 you would call so when when you look at this the 425 billion dollar number for fraud waste and
00:07:25.060 abuse. That's specific programs where you can literally find things that shouldn't be spent at
00:07:29.880 all. For example, actually this connects to the gas tax. There's a program that's been running
00:07:37.060 for over 10 years, started in 2015. It actually gets money from the, not necessarily the gas tax,
00:07:43.540 but the cap and trade system for part of their climate policy, some climate change mitigation
00:07:50.920 fund or whatever so but it's basically from your what you pay for gas and it's in this program was
00:07:56.640 supposed to install um solar panels on low-income apartment buildings 100 million dollars every year
00:08:04.600 since 2015 so 1 billion dollars total been spent we we looked at where that money's gone
00:08:10.980 of that 1 billion dollars actual spending on solar panels 72 million 928 million going to
00:08:19.460 these non-profits this this one exactly um uh going to you know democrat non-profit environmental 0.68
00:08:26.480 justice campaigns all this bullshit and so that's an example of out now that just shouldn't happen 0.53
00:08:32.960 just stop it stop spending that money the roads is not even included in that 425 billion total 0.96
00:08:39.700 the 425 billion estimate over five years roughly 85 billion a year is things like this the fact
00:08:46.440 that the roads are four times more expensive
00:08:48.400 to build. That's not even included in that.
00:08:50.000 Why is it four times more expensive?
00:08:52.100 Because they layer on all this nonsense.
00:08:54.680 For example, what we mentioned
00:08:56.380 earlier, it's public works, it's
00:08:58.220 public money, so you have to do prevailing wage,
00:09:00.440 union members only, community
00:09:02.280 workforce agreements, where you have
00:09:04.380 to hire endless nonsense,
00:09:06.540 environmental reviews, audits,
00:09:08.780 inspections. This is
00:09:10.420 what's going on. The amount of bloat
00:09:12.560 and nonsense people have to deal
00:09:14.420 with on a small scale. I met ladies,
00:09:16.220 She runs a small independent winery, wine country, Sonoma.
00:09:20.180 I think it was either Sonoma or Napa.
00:09:22.080 She told me she just wanted to expand her patio for more guests, 0.63
00:09:29.560 from 30 to 50 guests.
00:09:31.820 It took her six years, a million dollars.
00:09:36.460 Fees, permits, environmental reports she had to pay for, all this.
00:09:41.400 That story is typical.
00:09:43.400 I tell that story to other business owners.
00:09:45.600 oh yeah i've got one like that that just everything is layered on to make it so expensive
00:09:51.040 and so that's why that budget is so high because everything costs so much because of this
00:09:56.740 insane over regulation and a lot of it is driven i mean if if if you ask me that where's the
00:10:02.820 real cost and hassle of doing anything in california comes from come from basically over
00:10:09.520 the years i've been studying it now and traveling the state and meeting businesses and and regular
00:10:13.580 people it's really there are three underlying drivers the unions we've mentioned them the
00:10:19.760 uh the second one is litigation lawyers endless lawsuit costs huge litigation everything's a
00:10:29.220 lawsuit like there's an estimate that insurance policies for example that's one of the big issue
00:10:33.120 one of the most you know annoying things for people you can't get insurance so it's so expensive
00:10:37.000 the fair act or you sound like the insurance homeowners insurance leave regular they've left
00:10:41.320 the state, but one of the reasons is
00:10:43.200 you've got this massive insurance
00:10:44.540 litigation risk. It's called the tort tax.
00:10:47.240 Some people refer to it.
00:10:48.840 An estimate of $3,000 to $15,000
00:10:51.260 just the cost of litigation
00:10:53.260 that the insurance companies have to deal with.
00:10:55.840 What do you mean by this? Tort tax?
00:10:57.340 Insurance companies are having to pay this?
00:10:59.280 Yeah, it's a... Zoom in?
00:11:01.660 It's known as that.
00:11:03.660 Exactly. Tort tax is a term used
00:11:05.160 to describe how excessive litigation and legal system
00:11:07.120 abuse infiltrate insurance premiums raising costs.
00:11:09.560 So insurance companies
00:11:10.560 are already adding this as a cost
00:11:13.500 that they're probably going to get sued.
00:11:15.520 And so because of that,
00:11:16.540 they raise their rates to be able to profit
00:11:18.480 or else what's the point of being in the state of California?
00:11:20.880 Yes, but everyone has.
00:11:22.240 I was at a small manufacturing place.
00:11:24.260 He was saying they have to put aside
00:11:26.160 millions of dollars a year for lawsuits.
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