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Special Report Online: Gary Johnson

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    GOP presidential candidate takes 'Center Seat'

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By the -- expanded senator seat panel our second edition with our special visits from Republican.

Presidential candidates this evening our guest former new -- -- governor Gary Johnson.

Governor ever -- typing in here.

Cody says do you think -- asked the governor please do you think that the federal government or -- the state government has the ability to create.

Jobs.

I don't.

And as governor of New Mexico I never laid claim to creating one single job all -- Don't under estimate the power of being in charge of the executive so as governor of New Mexico I control all the agencies I control all the boards and commissions.

I control all rules and regulations and I would argue they got better on a regular daily basis.

With.

Fundamentally.

That being common sense.

-- Yeah many of your positions your your pro gay rights here.

Pro.

Structural waste your your immigration position is essentially in line with the Democratic Party -- against Iraq War before we went -- -- very anti war.

If it winds up with a lot of democratic views have you ever considered switching parties.

Well no because I'm -- exists scourge of it's on the democratic nightmare on the -- that vetoed 750.

Bills while I was governor of New Mexico.

Had thousands of a line item vetoes as governor of New Mexico.

Putting that in perspective I may have vetoed more legislation in the other 49 governors in the country combined.

So my thing is about why does government spend our money on and what do we get for the money we spend.

And I took on that argument I took on that debate every day I was in office.

I think what speaks volumes is.

He is as I get reelected in -- state -- 21 Democrat having said no we're all that spending and by the way I was an equal opportunity veto war.

A third of the legislature was Republican a third of my vetoes were Republican bills because Republicans seem to grow government just like Democrats.

Job.

Wanna get back to us -- because I just love email from Ron Paul fans.

According affected this libertarian -- and give you a concrete example what I was getting at before -- doesn't have do with.

Foreign policy or defense policy.

Ron Paul has this tendency.

Of making the perfect the enemy of the good -- example He votes against free trade deals because He says they're not free enough.

Because they're really managed trade I think he's got a very valid point no real free trade -- to be a thousand pages long which say they'll be free trade.

But the same time by taking this purist libertarian position He ends up voting with the protectionist on the left.

Would you consider yourself a free trader in the sense of being able to get what you can where you can.

We've I consider myself to be pragmatic so if -- advanced the ball I'm signing on to advancing the ball.

Chris from Pennsylvania says let me get this straight.

The governor wants to cut Social Security 43%.

Even with the seniors getting a raise without -- seniors getting a raise in the last three years.

Speaking as a senior He would never ever get my vote.

I guess when you start talking about and you explain this -- security part of it.

When you start talking about those massive cuts of 43%.

He scare a lot of people like Chris in Pennsylvania and if you were to get the nomination wouldn't you expect.

President Obama and the Democrats who just hammer you to scare seniors and win the nominee when general election.

Well -- I would like to reiterate.

It's not about cutting Social Security so security very simply is.

The system it needs to take in more money than what it.

What it pays out and that's a really a simple fix so no cuts to Social Security.

But if we don't address Medicare.

I can say it I think -- gonna find ourselves in the camp where were.

Where money isn't going to buy -- -- because.

We can't continue to spend this much more money than what we take him and the 43% number of course is the is the amount of money that we're currently printing and borrowing.

And in the last year that printing portion of it was seven.

Of of what it was that so we had to fill the gap with when that becomes a 100%.

And that becomes the roll over in treasuries than that that's that's the end I mean that maybe the reality but the political reality is getting votes based on.

Telling people this is a tough uphill -- well the truth and so this not on my candidacy has been about the truth and and it's been about a debate.

I mean I'm I'm open to a discussion I'm always open to changing my mind.

I mean something is very highly publicized to bring about an example of where I change my mind was of the death penalty in New Mexico.

I today believe that the death penalty is flawed public policy.

I naively I did not think the government put innocent people to death today I sit here telling you that I think categorically.

The government has put innocent people to death and I don't want to put one innocent person to death.

To punish 99 that are -- -- The media -- switch to run sort of focus of the media now which is the -- Wall Street folks.

Their claim is that the reason we're in our distress.

Economically and financially.

And why the middle class and everybody other than the rich are suffering is because of the greed of Wall Street and the -- regrets.

The other argument the one that was made by every Republican.

Candidate in the last debate was the cause of the financial collapse was not Wall Street.

It was the government and its policies over the last.

Ten or twenty years.

Where do you come down this debate who do you think has it right.

Well my hat of for first of all I share in the outrage if you will that everybody has right now -- that.

That our system is unfair that.

Government favors those that are well connected.

In individuals groups corporations that are well connected politically.

So the in the last debate the question was asked so there have been no criminal prosecutions what do you have to say about that.

Well you know what.

They're probably haven't been any criminal prosecutions because there probably wasn't any criminal actions but what did take place.

Was some incredibly.

Bad decision making.

That should have been rewarded with failure and wasn't and that's just outrages me and I think it outrages the country.

I think these guys would -- would much rather gone to jail than lose everything it was they had and they didn't lose anything they work.

You know capitalism on the way up communism on the way down that is not this country would you do about it.

That unfairness.

Well I would've never I would have never heard done anything with the bailouts and that goes for.

Businesses.

That goes for Wall Street and going forward I am I am the free market guy I am not the tariff -- Webster writes and -- -- governor Johnson wondering what tax plan do you support do you what do you think of 999.

And what do you think -- fair tax.

Well I support the fair tax.

Three things -- I'm promising as president -- nine states submit a balanced budget veto expenditures that exceed revenue.

And I promise to -- on the part of the fair attack explain the fair tax for folks don't know throw out into well for those that don't know get online fair tax dot -- this proposal's been around for awhile.

But it throws out the entire federal tax system.

And replaces it with the fair tax a 23%.

Consumption tax.

That by all free market economists reckoning is as exactly is exactly as the name implies it's fair.

You make more money in -- more fair tax you will pay so does away.

With -- income tax does away with business taxes away with corporate tax does away with the IRS -- era for the me just interrupt you for a senior who's on a fixed income.

Who.

You know isn't.

He's looking at prices going up 23%.

How does that affect them.

Well so it's not regressive from the standpoint that it issues everyone in the country a 200 dollar a month -- check.

So all of us here at this table get a 2400.

Dollar.

A year.

Stipend from the government to -- the fair tax up to the point of the poverty level.

So that's the that's that criticism and if I can just go back very quickly.

Brett when it when it comes to.

Zero corporate tax rate environment which the fair tax would late -- Would have.

If tens of millions of jobs are not created in this country.

With a zero corporate tax rate environment I don't know what it is we can do in this country to create those kinds of jobs.

Will find the rest of the world converting to the fair tax where -- -- a non non non.

Well from what I can make -- 999 it's basically phasing in the fair tax just go to the fair tax is -- on the part of the fair tax.

I think it it has -- equity I don't think the fair tax has any inequity in it well whatsoever I think like -- -- as the name implies.

It's fair it really.

It -- also a Green not kind of a -- it doesn't.

It does not tax used goods so everything that we own takes on.

Potentially more value because there's a market place now for four people that don't wanna buy new and save a little money one more -- -- no more well yes yeah.

It does -- -- have the potential to create a black market for.

Goods.

Could question.

If it.

So.

Today we have a black market I mean today good goods are traded on black market with the fair tax let's assume that that isn't any less or any greater but it's just the same thing.

Look you collect your money unfairly which is against the law and subject to prosecution but you collect your money unfairly.

You have to turn around and consume with it.

So it gets subjected to the fair tax as opposed I think guys are breaking the law -- get a payback by well if anything you purchase anything any thing that He brings in illicitly is going to get subject to the fair tax as it goes back out so it.

It really has that component also.

-- it.

Another factor in the fair tax is is the is -- the theory that embedded in all goods and services currently is about a 23%.

Tax.

So over a fairly short amount of time that 23%.

Embedded tax that exists now in goods and services would -- itself out.

And that the fair tax would actually be cost neutral.

Relative to today from rim and that would add addition an additional two state taxes exactly state taxes would stay would state taxes.

Local taxes.

That that still.

Would those would remain but this is the only federal tax this does away with the IRS.

Here's.

If if you don't have the Republican nomination would you consider how He considered at all running as a third party -- and -- not considered running as a third party candidates I have said that I have been treated really well by the Republican Party.

I wanna change that a little bit I was treated really well by the Republican party of New Mexico.

I was completely included in all the debates in the discussions.

And I will tell you I came from behind in a big way I was 2%.

In February in New Mexico of the Republican vote for governor the primary was in June.

But I was given a seat at the table.

So with regard to Republicans and not being given a seat at the table I wish the Republican.

National committee.

Would speak up on behalf of the fact that.

Potentially half Republicans right now are not being given a voice.

Yeah I would like to get back to the foreign policy question are -- Communists in the this won't happen -- -- -- zero W Virginia mine always opens new facts and all -- there are those who would argue that.

The pax Americana that.

The world enjoys right now.

Pax Americana -- we have -- Chinese.

That.

Global stability in pieces and in somewhat enforced by American force of arms by the seven fleet for the fifth fleet by.

Are keeping the sea lanes open for instance.

If you had your way if you your your website you're about pulling your troops home not just from Afghanistan and Iraq but.

From Europe and from everywhere you know it seems that there's no outer boundary where you want to bring our troops home from.

What happens if all of a sudden China goes after Taiwan.

-- they start closing off the you know the ceilings around them.

Yes Iran attacks Israel what happens if the -- the American forces that you bring home or actually the ones that we're giving -- more peace than you think.

Well I am I am I'm looking forward to that briefing if you will I'm looking I'm looking forward to the briefing on how do we cut 43%.

From the military believing.

And and having had those discussions.

That it can be done and that we can be smarter and that we can provide.

Believing.

Believing that we should not.

Have foreign aid the notion of borrowing 43 cents on the dollar and and then giving it away to foreign countries.

I don't think we should be supporting foreign -- at all but it's important I think to distinguish between foreign aid and military alliances.

I think military alliances and sharing this responsibility with other countries that currently.

Aren't doing that I mean all these vaunted.

Transportation infrastructure projects in Europe over the last several decades.

Universal health care in in Europe have we not subsidize.

Those programs because they haven't had to pay anything for.

For defense.

But look for earnings of trivial amount of money compared with our defensemen.

Defense spending is where the money she could cut.

Foreign aid to zero tomorrow made no difference in terms of our deficit I understand that and I understand so you wanna cut the military essentially in half.

And to get a briefing that the generals will ask -- what what kind of army or -- do you want.

You want them to bring our -- our authorities -- countries OK but what do you do -- -- -- gonna bring it home leave and leave it out there patrolling.

The Pacific.

The rim does the strait -- Malacca and other -- polls so so the navy may be strategically the direction that we should that we should pursue as president in Europe commander in chief into your strategic.

Ideas which will.

The drives -- reshaping of the military so -- just tell the military.

What do you want to do with the military let's say in the Pacific in terms of.

Our our -- So based on my experience as governor which was the -- -- With regard to every single job that was available -- apply.

Apply for every single job -- -- that that -- that are available and I'm gonna conduct an interview process.

And so in that interview process.

I suggest you that I will be hiring people that believe.

Like mindedly with myself.

And that we will it accomplish this would you have.

American naval forces.

Essentially controlling the waters of the Pacific rim as we are today or would you pull back.

And let China take control -- as it's trying to do with -- -- Well so -- tell -- about China for a second I mean back to us spending more than half of the military spending that's taking place in the world today -- 5% of world's population.

Of that 52 -- that we're spending China spending nine cents.

So I don't know is China and I have I have this.

I have this fundamental belief also and that is is that a state run economy just isn't going to work.

And so right now arguably the largest.

Real estate bubble in the history of bomb mankind.

Exists right now in China.

I think China has some real pressing issues with the migration of a hundred million people into rural areas.

And the fact that 70% of their GDP has been.

Infrastructure spending that is for the most part empty.

I think there's some real issues with China that are gonna get played out that don't include.

Them trying to push themselves militarily across the -- across the plan.

-- from Ireland -- wrap it up here He writes governor Johnson has climbed Mount Everest.

So which is tougher running for president are climbing Mount Everest.

Well the great thing about athletics I have been an athlete my entire life the wonderful thing about athletics is it is that it's a stopwatch.

It's measurable.

I once told the the football coach university in New Mexico you have to look He has a job because -- -- -- -- grated on his win loss as opposed to politics.

Where everything is up for grabs when it comes to.

Measurements and who's successful and who's not successful.

Yes so if you're a pundit it's even -- I think governor Johnson thank you so much of the time it's been wonderful really appreciate it thank you very very much solved it.

Thanks for watching -- report on line and center seeing join us every week day on Fox News Channel 6 PM eastern -- -- by.

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