Interview with Neil Cavuto of Fox News

Fox News' "Your World"

MAYOR GIULIANI: "I think the Federal Reserve has to have the independence to assess these things. And generally they've been correct and I have no reason to criticize it. I think they're looking at what we're all looking at. And monetary policy is important to this. I put more of the focus on fiscal policy, though. I think the government is going to have to do something pretty strong here. I think a very strong stimulus package is necessary. And, to me, a strong stimulus package is heavy on the permanent part. And that's why I put out last week — we have talked about it — the largest tax reduction in American history. The idea of that was to say to the markets: You're going to be looking at an America that's a good investment. You're going to be looking at an America that has growth. You're going to be looking at an America that's going to allow you a little bit more range of profit and a little bit more range of seeing expansion. So I would put heavy emphasis on cutting the corporate tax, cutting the capital gains tax, keeping the tax on the dividends low — the things that are very competitive between countries where money moves one place or another."

NEIL CAVUTO: "But none of these stimulus packages, including the President's, Mayor, have much of a long-term nature. A lot of them have these rebates and quick checks to folks. But if that's all they can produce, and it looks like as this time that is all they can come up with, what do you think?"

MAYOR GIULIANI: "I would think that would not be — that wouldn't help very much. It would be like a Band-Aid. Just think of this situation. Companies that are considering investing long-term and have got three or four possibilities of where to invest the money and one of them is America — they are looking at an America in which the Bush tax cuts are going to expire, which means a 20 to 30 percent increase in taxes. They are looking at an America in which all kinds of tax increase programs are being suggested by people like Charlie Rangel. They're looking at an American where if a Democrat gets elected there'll be a vast expansion in the central government's regulation of business and they're looking at an America that has one of the most out of control legal systems as far as getting sued in the world. Well, when you look at an America like that, you may select Ireland or you may select Bermuda or you may select Eastern Europe or you may select China or India. So the American president has to understand that we have to be competitive."