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And hello again from Fox News in Washington.
Earlier Sunday morning we learned Indiana governor Mitch Daniels a favorite of many establishment conservatives.
Well not entered the 2012 Republican rice for president.
Daniels cited family considerations in making his decision.
But on Saturday in Atlanta Herman Cain the former CEO of godfathers pizza made it official.
He is running for the GOP presidential nomination.
As part of our continuing series -- 18121.
On one we are joined by mr.
-- for his first interview since becoming -- Canada.
And welcome to FOX News Sunday thanks Chris it's my pleasure.
You ended your announcement yesterday talking about what will happen to America.
Once you're -- -- We'll all be evident -- what happened.
-- -- Yes -- -- a lot.
Free from legislation.
That's being forced down the throats of the American people like Obama care.
Free from an an -- -- disregard.
Of the American people as it relates to things that the people want free from a stagnant economy.
When in fact.
We have the ability to grow a lot faster if we lower taxes.
If we get rid of the -- -- the capital gains tax suspend taxes don't.
Foreign repatriate the profits provided -- -- -- stimulus such as a real payroll tax holiday.
But employees and employers and free from dependence.
On foreign all of which is only -- -- up.
Because we don't have a real energy independence plan.
All right let's drill down enough so hopefully your being here today let's drill down on summer for your views on the debt limit you say don't.
Make a deal even John Boehner who says let's cut spending.
At least as much dollar for dollar as we ray is right the debt limit you say that is nothing but a stall tactic yes it is it's let's let's let's take a look.
Raising the debt ceiling paid for the stuff this critical and in the other things I'm gonna have to be forced and mandatory cuts.
Under the -- -- you would pay our Chinese predator is first yes while.
Substantially cutting sharply cutting services programs for Americans yes but not.
Pay pay the debt on pay that interest on the debt first.
Makes do we take care -- our military and their families.
Certainly -- should it even have a didn't pay your Social Security checks that they get paid and in fourth make sure that people's Medicare bills get -- The and you look at everything else and that's what you start cut you don't start cutting until -- we -- -- of those things now.
-- -- -- a lot of serious cuts for people were paying the Chinese yet whether there is first yes because that we don't pay the Chinese credit dispersed.
The amount of interest we I have to pay will go up.
I am sure that they -- -- in there if we don't -- -- now he is the -- quite frankly that.
Represented the Boehner and others have painted himself into.
If you what do doodles for things you need to have done it at the beginning of this crisis.
Getting this close what -- happen now.
Is that they have allow big timing to get sold close to the they may have allowed the -- of the -- until -- Where they may be forced to and I still call that they should of it's they should've seen this coming which they -- it but it didn't move fast enough but.
But even your plan.
Yes let's say even if they had been able to do to take care of this and -- Federal Reserve Chairman Ben Bernanke says that your idea and you're not the only one has offered a rise to dangerous.
Is the way he put even if the debt is -- There's the issue of market confidence and how the market would respond to the risk of default.
Or even the default on non debt obligations Bernanke says that -- It it'll end up just as you suggest it'll end up costing the US war right even if you pay the -- it's gonna and it cost in the US want to borrow from other countries which will only increase the deficit.
And that's gonna filter down and to higher interest rates whenever you want to.
Got a new on Biotech got a mortgage worked at a new -- He's absolutely right but I also thing.
Raising the debt ceiling is also going to be a negative against market confidence they and they -- caught between a rock and a hard place quite frankly now.
And the reason that they got in the between it and this between his rock and a hard place they waited too long to deal with the issue that's now come pounding the problem not.
Helping them to -- but Bernanke is -- at this point.
You've got to make a deal.
And and and you've got to make a deal and raise the debt ceiling and if you don't and you just pay the debt off that's still gonna write the market and I would agree with.
As a -- you're just a McCain plan is wrong.
No I did I -- it that they allowed themselves to get in this whole they allowed themselves to get between a rock and a hard place what I said about identify handles for paying the payrolls first.
If they had done this a year ago anticipating this it bit -- -- worked.
He's right that is the game planned right -- wrong now.
The McCain plan can't work now.
It cannot work now.
Simply because they waited to -- And this is -- a problem.
They wait until problem is -- a disaster the point and being in go to the American people and say we have no choice that's not leadership that's not good decision.
Right on the last you about another of -- -- ideas and actually talked about this during that is South Carolina debate as you say.
Abolish the IR -- abolish the income tax you replace it with a fair tax -- national sales -- of 23%.
Now first the ball -- -- According to the way this plan as laid out people would have to pace a national sales tax.
On almost every new good or services you buy a new home right you pay a mortgage payment you pay rent you gotta pay a 23% national sales tax.
You buy food you get medical care you gotta pay a 23% national sales tax write you OK without.
Of course because also say this Chris ever tell you to scrap.
All federal income taxes it replaces the payroll tax in other words -- went to 3%.
Will collect the same amount of tax revenue from -- in come taxes corporately and personally.
It'll also collect the amount of money that's been raised through the payroll tax such -- when a person -- step paste.
You won't have a federal tax deduction you won't -- By the deduction.
It will be included and it went through -- did you -- now part two of that.
In addition to be in a replacement tax not on top of minute thing.
In addition to that there is a pre bate provision.
That's collected in a 23% such that every family will be yet but sales tax on basic necessity is -- calculated with the formula.
Before you have to go to the store before you have the go to -- Here's the problem with that president George W Bush's he had a commission on tax reform yes in 2000 -- they looked at the fair tax.
They set it won't work and here's why they said it won't work.
They said that did create the revenue that you're talking about it would have to be a 34%.
Tax -- not 23%.
And with the -- -- you just talked about they say it would in fact benefit low and high income taxpayers.
But it would raise taxes it would raise taxes for the entire middle class -- anyone making between fifteen.
And 200000 dollars.
Chris they weren't did wrong.
Here's what happened as of President Bush at -- -- no this is this commission when I heard the commission make make that assessment of effect tax I was screaming.
Other people who knew something about the fat -- was screaming we never got an opportunity to explain what they.
In that actual deal.
This is why they come up with these outrageous numbers so if you change the assumptions of what's in the big -- You'll come up with some -- novels like that it ought to kill it and defeated.
Don't talk to repeat talk to -- represented -- John -- if he'd been given an opportunity to -- -- he would've stayed exactly what I say it.
Talked to legally and -- wanted to.
One of the gentlemen we have to do to research on it.
-- are a lot of people who -- if you do it according to the assumption in the legislation HR twenty -- you don't come up with that they changed the assumption.
All right let's turn to foreign policy -- say that President Obama throw Israel under the boss -- your words with his plan this week deaths were as a baseline Israel to return to the 1967 borders -- -- -- -- Yes -- doctrine is.
Don't mess with Israel you -- -- -- Masson with the US -- question what would president came offer the Palestinians.
Because I'm not convinced that the Palestinians.
Are really incident peace if the Palestinians.
Come to the table with Israel.
With the Jane went offer that the -- -- can sit down and negotiate.
The United States would in fact track to facilitate that discussion.
But if we look at history.
It has been clear.
That the Palestinians have always wanted to push the Israelis and -- visual but more and more and more I don't agree with that.
-- I respect.
Prime minister Benjamin Netanyahu but taken a stand and saying they cannot give that up secondly -- Israel's decision.
Not president Obama's decision as to -- border last ought to be where do you stand on the right of return.
The right -- return.
The right of return the Palestinian right of return.
That's something that should be negotiated.
That's something that should be negotiated.
But here -- the Palestinian Palestinian refugees the people who were kicked out of the -- in 1948.
Should be able or should have any right to return to the Israeli land yeah.
Yes but on that but not on the Palestinian conditions yes.
They should have a right to come back if that is a decision that usual wants to make.
-- back to is up to visual to determine the things that they would accept.
Prime minister Benjamin Netanyahu made a real clear in his statement following.
That statement that President Obama made.
They are willing to.
Make some concessions they are willing to deal on a lot of things.
They're willing to be compassionate I don't think they have a big problem with people returning the issue is that some things that they simply do not want to give me you know.
We have been at war in Afghanistan for almost ten years and yet you sat and you say it quite probably you have no plan.
For what to do in Afghanistan you'd have to wait to you got into office team that with the experts he had met with the military officials and then he would -- it.
Don't you -- what to people who are thinking of voting for you to give them some idea about what you would do about a major US military involvement in Afghanistan.
I do and his one out all the I told him the right approach to make the right decision system really not that ten more years so when that what is the right approach the right approach is that day -- elected president I will start on that -- -- says that the -- I'm sworn in I would be able to implement that plan -- doesn't tell anybody what -- to ram -- -- support counterinsurgency or counterterrorism.
Chris let's go back let's go back to this go back to the fundamental question.
We've got the work on my problem.
I think it is disingenuous to tell the American people what I would do.
When I don't have the intelligence information I don't hang out all of the factors that affect in this particular situation.
I -- the American people a responsible decision and a responsible plan and I don't think -- a candidate can responsible to say what they would do.
If they elected president.
Are finally at -- we only got about a minute left I would ask you about some pluses and some minuses for your campaign has yet really quite striking and let's put up this poll.
In the daily Gallup poll only 29% of Republicans even know who you -- -- yes but you have the strongest support among those who do recognize you 24%.
On the other hand.
You've been campaigning for months Europe terminator -- Ray is just 161000 dollars in the first three months of this year at the end of march you had thirteen dollars cash on hand question.
In his campaign broke.
No it's not.
The terminator pact we sees that at the end of January that ended December and the people who look -- at that terminate a pack account that's an in active account.
We open up a new when call for -- of Herman Cain which we will file.
July 15 according to the FEC so it is it can you tell us how much money you've got -- that are good but I won't Chris because that'll Wal-Mart competition and no but I do I can't tell you we ought not broke.
We have not broke.
That the -- account in did the decent but that's -- -- thirteen dollars friend Herman Cain is doing just -- But we need -- We are they more -- okay.
Want to thank you so much for coming anyway today always a pleasure to talk with you please come back and good luck on the campaign -- thanks Chris I've enjoyed it thank you.
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