January 11th, 2008
10:30 AM ET
10 years ago

Giuliani pledges largest tax cut in U.S. history

[cnn-photo-caption image= http://i.l.cnn.net/cnn/2008/images/01/11/art.giulianiad.cnn.jpg caption="Giuliani is up with a new ad in Florida."](CNN) - Rudy Giuliani has launched a new ad in which the Republican presidential candidate pledges that his first priority as president will be a proposal for the largest tax cut in U.S. history ­ one which would dwarf successful cuts by both President Reagan and President George W. Bush.

In the 30-second spot, 'First Day,' the announcer tells viewers that "On his first day in office, Rudy Giuliani will send Congress the largest tax cut in American history."

Adds Giuliani: "I would lower taxes as President of the United States because it¹s not just an ideology or, or a theory for me. I made it work. I had results."

"Rudy's delivered more tax relief than the other Republicans combined. And now has a plan to cut taxes by trillions of dollars," says the narrator.

Giuliani concludes: "I'm the one who, who's lowered taxes, and lowered spending, and actually gotten it done where it was more difficult to do it than even in Washington, DC."

Giuliani's multi-trillion dollar proposal, unveiled in a speech earlier this week, would reduce the capital gains tax from 15 percent to 10 percent, preserve President Bush's 2001 and 2003 tax cuts, lower the corporate tax rate from 35 percent to 25 percent, permanently eliminate the estate tax, and give taxpayers the option of choosing a simplified tax form with three tax brackets with a maximum bracket of 30 percent. It would also index the alternative minimum tax to inflation - and eventually repeal it entirely.

The new ad will air in Florida, and nationwide.

- CNN's Rebecca Sinderbrand

Filed under: Rudy Giuliani
soundoff (110 Responses)
  1. windrider

    Great, so Rudy will finish what Bush started: the complete and utter bankrupting of the United States (or at least we common folk in the US...like all Republicans, Rudy believes in enriching the rich to the detriment of everyone else).

    I'm sure he intends to increase military spending, which already exceeds THE ENTIRE MILITARY EXPENDITURES OF THE REST OF THE WORLD. After all, with Norman Podhretz as his national security advisor, he'll need a much bigger military with which to attack Iran and Syria...the next two targets on the neocon wish list. Of course, to pay for it, he'll have to eliminate any kind of government programs that provide food, housing, heating, health care or educational assistance. No problem, that just gives the peasants motivation to join the Army and become cannon fodder for the next Republican dirty little war.

    And I'm sure he has some rebate programs in mind for the oil and gas industries, the pharmaceuticals industries, the health insurance industries...who are already awash in tens of billions of dollars in PURE PROFIT (that's free money, folks, completely unencumbered) and tax rebates, too, even when they pay no taxes.

    Yes, by all means, let's destroy what's left of working class and middle class America, and then Republicans can have their very own personal third world country to play with, right in their own backyards. They might not even have to hire so many undocumented workers from down south as more and more Americans are forced to work for peasant wages just to survive.

    January 11, 2008 01:22 pm at 1:22 pm |
  2. Anonymous

    Is he forgetting about the deficit and the trillions of dollars being spent on the war?! Decreasing estate taxes and capital gains taxes helps the rich and doesn't do anything for the middle and lower classes. Issues like social security, health care, and education will suffer even more from a significant tax cut. Terrible idea. He's just trying to gain support by offering short term gains to a few that in the long term will negatively affect many government programs and leave the next generation with this generation's debt.

    January 11, 2008 01:22 pm at 1:22 pm |
  3. Tom, Rockport ME

    What an irresponsible proposal! How does Rudy plan to "stay on offense" in the war on terror, maintain a military commitment to Iraq, AND reduce the deficit with such massive tax cuts? This is particularly pernicious when the theoretical "trickle-down" effect of Reaganomics is largely going overseas, as jobs are outsourced.

    We to maintain tax breaks targeted at the middle class, and eliminate those for businesses that outsource jobs overseas. This is the worst combination of misguided thinking and political pandering I have yet seen in this election.

    January 11, 2008 01:23 pm at 1:23 pm |
  4. ejr1953

    Where will that money come from? More borrowing? Just print more bills?

    January 11, 2008 01:23 pm at 1:23 pm |
  5. Another Steve

    Oh yeah, let's just borrow more money from China to pay for everything. After the wealthiest Americans just don't have enough money yet.. What do the poor need all those social services for anyways. Throw middle class a bone, I'm sure they will be happy and oblivious to what you've done. After as above Ronald Reagan started the roller coaster debt problem and he is thought of as one of the greats.

    January 11, 2008 01:26 pm at 1:26 pm |
  6. Steve, Lyons, CO

    Poor laboring Art said:
    "Well done Rudy! You turned around NYC and you can lead the nation too. You're not buying votes any more than candidates proposing support programs to various groups – only difference – you'll let me decide how to spend that money!"

    You're one of those slow, earnest and loyal Neanderthals, aren't you, Art?

    Rudy wants to give even MORE taxpayer money to the rich, on the backs of the middle class AGAIN. You won't have any money to spend anywhere.

    I can see you slap your head like Homer. "Doh!"

    You can thank me later.

    January 11, 2008 01:27 pm at 1:27 pm |
  7. Andre

    Mr. Giuliani,

    That proposal is madness. A tax cut of that level would either balloon the deficit to one trillion or more a year or, programs like Medicare, Medicaid, Student Loans, farm subsidies etcetera would have to be completely eliminated. There are only two good things about this proposal:

    1) No one in Congress would vote for it
    2) Such a crazy proposal would ensure that you are not elected president.

    What a disappointment! I once had high hopes of voting for you – now I realize that we cannot put our country into your hands; gridlock would be incredible – unless congress ran the country by constantly overriding your veto.

    I suggest that you return to private business, sir. There is no real support for such a proposal – it is nothing more than extremist dogma for the ultra-rich.

    January 11, 2008 01:29 pm at 1:29 pm |
  8. Duncan, Richmond, VA

    Ron Paul, as well as the tax cut of shutting down the IRS, also wants to cut the government in half and bring home all our troops. Rudi wants to just cut taxes and then invade Iran.

    January 11, 2008 01:31 pm at 1:31 pm |
  9. Kit

    He may be one of the lesser evils, but I didn't see anything about eliminating income tax in there. I'd rather see a high sales tax, at least then I have a choice in the matter. Although there'd have to be limits on that considering they would be getting a lot more money from a sales tax rather than an income tax. And noone should have a right to the peoples hard earned money.

    January 11, 2008 01:32 pm at 1:32 pm |
  10. Bryan

    Wow, unless I am mistaken, the US GDP is only about 13 billion dollars. According to the Wikipedia, the Federal budget in 2006 was 2.6 trillion dollars. However, last night in the Republican debate, Giuliani said he would cut taxes by trillions (that's plural). So is he going to cut the budget from 2.6 trillion dollars to 600 billion?? How is he going to even pay for the war, let alone Medicare, Social Security, protecting the borders, etc? This is the same mindless "my tax cut is bigger than your" dribble that lost the election for Bob Dole. I would rather see a balanced budget than a tax cut, and in fact both would be nice. However, merely calling for huge tax cuts is mindless if he isn't going to account for reduced revenues.

    January 11, 2008 01:38 pm at 1:38 pm |
  11. Dan

    There isn't a tax out there that socialist democrats don't like.

    January 11, 2008 01:42 pm at 1:42 pm |
  12. Leo, TX

    That's brilliant, Rudy. Our nation is already burdened by record debt thanks to the Federal government's brazen irresponsibility, and now he wants to further burden future generations with debt.

    Sorry...Romney gets my vote.

    January 11, 2008 01:45 pm at 1:45 pm |
  13. heartlight 3, Maui, HI

    It is incredible to me that people have such an emotional reaction to the words "tax cut" that they totally ignore the reality that you need money to run any operation. In any business enterprise reducing the revenue does not increase the profit. The premise is that if spending is reduced, then the tax cuts for the corporations and the wealthiest people will cause more investment and grow the economy. I have researched that extensively and most of the information I have found indicates that the growth caused by the tax cuts has only recovered anywhere from 17% to 50% of the lost revenue. It seems obvious that this strategy sounds nice, but doesn't actually work. How do you think we always end up with such staggering increases in our debt when people with this philosophy are in charge? The reduced spending seems to always be applied to education, social programs, environmental programs and infrastructure, which are already seriously underfunded, while huge amounts of money are spent on weapons, war and, massive no-bid government contracts. No reduced spending there. I don't see how anyone can think that taxes on the people who make the least money, and deep reductions of taxes on the people that make the most, is going to produce enough money to run a country the size of this one. I am one of the majority in this country who make less than $250,000. I see nothing in Rudy's plan that would benefit me.

    January 11, 2008 01:45 pm at 1:45 pm |
  14. james, newport, KY

    How about eliminating the federal income tax altogether?

    Now, that is conservatism!

    Cut spending on all entitlement programs....let people get by on their own labor and investments and quit letting the government be the caretaker of people.

    For those that need help, that's what churches and civic organizations and families are for.

    BTW, Rudy is a tool of the neo-con warlords.

    January 11, 2008 01:46 pm at 1:46 pm |
  15. J.R.

    Any monkey in a suit can promise a tax cut.

    January 11, 2008 01:48 pm at 1:48 pm |
  16. Del

    All sounds good . . . . . . . . . but. . . . I agree with ejr1953 but, , , , , and Giuliani carries as much baggage with him as the clintons. Just too liberal on too many other issues as with McCain. Check their records not what they're saying in 2008.

    January 11, 2008 01:49 pm at 1:49 pm |
  17. Kit

    I'll agree with the democrats loving taxes statement. They love to take peoples money to support all the needy people. Well it's one thing to be needy, it's another thing when the government is what is putting you in that position in the first place. Look around... A lot of the world is in debt because of the amount of taxes we pay. We shouldn't have to take care of the world. And we should have a choice in a lot of the things that we are MADE to do now.

    January 11, 2008 01:51 pm at 1:51 pm |
  18. Tyler in Raleigh, NC

    Its about time the stop taxing hard working Americans. I prefer Ron Paul's approach however, why do we tax income at all?

    If someone EARNS money why should they share it with others? You work hard make more, isnt that the American way? Not you make more, you give the government a bigger cut.

    Time for a flat tax or no income tax at all. Charge consumption and not earnins so people have incentives to work and save, not be lazy and spend.

    January 11, 2008 01:52 pm at 1:52 pm |
  19. Tim, Boston, MA

    Interesting how CNN left out the tax rates that Giuliani is proposing. I consider myself a middle income american (I'm a third year High School teacher), and under Giuliani's plan my tax rate would be cut 10%. The idea that this cut does nothing for middle income americans is just not true as i would receive a relatively huge cut. Under this plan, I'll have more money to save or better yet, spend, and stimulate growth in the economy.

    As for how to get rid of the deficit, i remember from Econ 101 that tax cuts stimulate growth, which increases goverment revenue. And to everyone complaining about a Corporate Tax cut, don't corporations provide jobs to people so they can make money? If Corporations have more money to spend, they can provide jobs to Americans, instead of shipping them abroad. Also, Giuliani is proposing massive spending cuts, such as eliminating pork projects, cutting back on government programs, and not hiring as many government workers. Will it completely balance the budget? Probably not. However, its better to stimulate the economy with across the board tax cuts and increase revenue than to raise taxes, stop investment, and halt government revenue. If we do that, then there's no way we can pay off the deficit.

    So, i'm for Giuliani on this one. This tax cut empowers middle income americans by putting more money in their pocket. Don't let CNN or anyone else mislead you to believe otherwise.

    January 11, 2008 01:52 pm at 1:52 pm |
  20. Rod

    Good old George W. Bush has doubled our National Debt during his "long" eight years in office. You think old Rudy is trying to do him one better. The line that is appropriate here is the one that George W. could never say. "Fool me once, you are the fool, fool me twice I'm the fool." It aint going to happen Rudy. I'm tired of seeing the Republicans adding all of this debt onto our grandchildren's shoulders and I believe most Americans feel the same way.

    January 11, 2008 01:53 pm at 1:53 pm |
  21. NewPatriot-Arizona

    Ron Paul for President 2008 ! The only candidate that understands the U.S. Constitution. The choice is clear !

    January 11, 2008 01:54 pm at 1:54 pm |
  22. Sensible Cape Coral Fl

    Hey Art:

    Who the hell said Rudy turned NYC around? Rudy told you, that's who. And you are stupid enough to believe him. God help us all if people like you get to vote. I'm increasingly infavor of IQ tests for voters.

    January 11, 2008 01:55 pm at 1:55 pm |
  23. GrabforPower

    I couldn't actually type because I was laughing.

    Ken in RI, I too thought you were right on.

    He's just coming across as an elitist panderer.

    Bush: Dictator-lite
    Giuliani: Dictator. That sound you hear is the shredding of the constitution.

    January 11, 2008 02:00 pm at 2:00 pm |
  24. Nick

    Look, I love tax cuts, but I really wish Republicans would start from the bottom and work their way up. Then they wouldn't look like a bunch of rich guys helping themselves. Those at the top don't really need tax cuts.

    And we're also $9 trillion in deficit and likely to go deeper to fund your "war on Islamic extremism" and expanding the military like you've proposed.

    January 11, 2008 02:01 pm at 2:01 pm |
  25. NewPatriot-Arizona

    Rudy to cut the greatest tax cut in U.S. history ? that is very scary ! why? because that means all the corporations will be the rule of the law ! that is very scary!

    January 11, 2008 02:08 pm at 2:08 pm |
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