Larry Kudlow Interviews Republican Presidential Candidate, Rudy Giuliani, on CNBC's Kudlow & Company (Transcript Included)

DATE: June 18th
NETWORK: CNBC
PROGRAM: "Kudlow & Company"
TIME: 5:00 PM ET

The following is the unofficial transcript of a CNBC interview with Republican Presidential Candidate, Rudy Giuliani, on CNBC's "Kudlow & Company" today at 5:00 PM ET. All references must be sourced to CNBC.

In the interview, Giuliani discusses Democrats in Congress "war on the wealthy," his strategy to win the Iraq war, immigration reform, globalization/competition in world markets, budget deficit/Congressional spending, Iran's nuclear ambitions and relations with Russia and China, among other topics.

LARRY: YOUR MONEY, YOUR VOTE. IS OUR SECOND VISIT WITH 32 LYONNAIS. HE TOLD US LAST TIME HE WAS A FREE-MARKET CAPITALIST WOULD FIGHT WASHINGTON'S WAR AGAINST PROSPERITY. LORD KNOWS WE NEED IT. NOW HE WILL TELL US ABOUT HIS 2 COMMITMENTS TO THE AMERICAN PEOPLE. HE LOWERED ONLY HAD 10 OMMANDMENTS. THIS MUST BE REALLY IMPORTANT. PLUS LABEL TALK ABOUT BILL AND HILLARY STOCK PORTFOLIO DISCLOSURE AND WHAT IS THE PROBLEM WITH THE NEW YORK FIREMEN AND WHY ARE THEY HOLDING THEIR ENDORSEMENT? 20 NOW IS MAYOR RUDY GUILIANI. WE APPRECIATE IT.

GIULIANI: THIS. GOD CAN DO WITH AN 10. MIRROR MORTALS NEED MORE SPACE TO GIVE THE COMMITMENTS OUT.

LARRY: AND EGO TO MAKE TOUGHER STORY JUST TO BEGIN WITH. AMONG FIRE FIGHTERS WITH MIXED YOU. I WILL GIVE YOU A CHANCE TO RESPOND. NUMBER ONE THEY SAY THE CONTRACT LEFT FIRE FIGHTERS WITHOUT A RAISE FOR TWO YEARS. NUMBER TO MR. GIULIANI EXAGGERATED THE ROLE HE PLAYED AND NO. 3 THERE IS STILL SOME ILL FEELING ABOUT PUTTING LIMITS ON THE RECOVERY AND DISCOVERY OF THE BODIES. OF COURSE AS EVERYONE KNOWS A 9/11 IS AN INTEGRAL PART OF YOUR PRESIDENTIAL CAMPAIGN. HOW TO RESPOND?

GIULIANI: FOR SMALL THE CONTRACT DID HAVE NO RAISES FOR THE FIRST YEARS BUT THAT IS WHAT I HAD TO DO TO BALANCE THE BUDGET. I HAD A 2.$3 BILLION DEFICIT THAT I INHERITED. THEY THEN GOT RAISES IN EVERY SINGLE YEAR AFTER THAT WHEN THE CITI WENT FROM A 2.$3 BILLION DEFICIT TO A $38 BILLION SURPLUS. IT WAS NOT JUST FIRE FIGHTERS IT WAS EVERYONE AGREED TO THAT. THEN I GOT INCREASE OF TWO OR THREE OR 5%. LABOR NEGOTIATIONS ALWAYS LEAVE PEOPLE FEELING THEY DIDN'T GET EVERYTHING THEY SHOULD GET. BUT THAT WAS A BARGAIN OF THE AGREEMENT. I'VE NEVER TAKING CREDIT FOR SEPTEMBER 11. I HAVE RESTED ON THE SHOULDERS OF GIANTS. THE CREDIT GOES TO EVERYBODY ELSE, THE BRAVE FIRE FIGHTERS, RESCUE WORKERS, POLICE OFFICERS. I WAS THERE WITH THEM AND I GOT A CREDIT FOR THE GOOD WORK THEY DID. AND THE DECISION FROM GROUND ZERO WAS DOING FOR THEIR BENEFIT IT WAS A DANGEROUS SITUATION. THERE WERE TOO MANY. I JUST SEEN IN INCIDENT WHERE A FIRE FIGHTER WAS ALMOST KILLED BY A CRANE. HE GOT JUST ANOTHER WAY AT THE LAST SECOND. WHERE SUNDAY'S HAD BEEN TELLING ME THERE WERE TOO MANY PEOPLE. I HAD TO MAKE A TOUGH DECISION. BUT IT WAS MADE OUT OF CONCERN FOR THEIR SAFETY NOT FOR ANY OTHER REASON. IF YOU READ THE STORY YOU HAVE PEOPLE ON BOTH SIDES.

LARRY: YOUR RIGHT.

GIULIANI: A LOT OF FIRE FIGHTERS THOUGHT I EIGHTH DID A VERY GOOD JOB.

LARRY: BUT I WANTED TO LET YOU CLARIFY. ARE YOU IN TOUCH WITH THE UNION LEADERSHIP WAS A FIREMAN? ARE YOU IN TOUCH WITH SOME OF THE FAMILIES? BECAUSE I THINK IT IS FAIR TO SAY YOUR CANDIDACY IN NO SMALL PART COMES FROM THAT.

GIULIANI: I THINK IT ALSO COMES FROM THE YEARS OF MAYOR I TOOK OVER A CITI THAT WAS THE CRIME CAPITAL OF AMERICA AND STERNEST INTO THE SAFEST LARGE CITI IN AMERICA. TOOK OVER A CITI WITH 10 PERCENT UNEMPLOYMENT AND CUT IT TO FIVE AND REMOVED 640,000 PEOPLE FROM WELL FOR PART. THAT WAS BEFORE 9/11. SEPTEMBER 11 WAS A HORRIBLE SITUATION I DID THE BEST THAT I COULD. THERE WERE SOME PEOPLE WOULD AGREE AND SOME PEOPLE WHO DON'T. THEY HAVE A RIGHT TO HAVE THAT JUDGMENT. I AM VERY MUCH IN TOUCH WITH FIRE FIGHTERS. RIGHT AFTER DUE TO THE ORIGINAL CONTRIBUTION OF $10 MILLION.

LARRY: CHAIRMAN OF OUR PARENT COMPANY GE. WEAK RAISED $127 MILLION AND DISTRIBUTED EVERY SINGLE PENNY TO THEM. NO ADMINISTRATIVE COSTS, THOSE WERE ALL EATEN.

GIULIANI: I FEEL A TREMENDOUS OBLIGATION AND DEBT TOO EVERY ONE OF THOSE FIRE FIGHTERS AND POLICE OFFICERS THAT I LOST AND I DO EVERYTHING THAT I CAN TO HELP THEM. AS I DID BEFORE SEPTEMBER SEPTEMBER 11th. MOST OF THE TIME I WAS AT THEIR BEDSIDE WHEN THEY DIED. EVERY TIME I WAS AT THEIR FUNERAL SHOWING THE RESPECT OF THE CITI. AND EVERY TIME I TRIED TO DO EVERYTHING I COULD TO MAKE SURE THE FAMILY WAS TAKING CARE OF, I HAD FOR ALL CALLS AND A COUSIN WHO WERE NYC POLICE OFFICERS.

LARRY: I AM SORRY TO HEAR THAT.

GIULIANI: AND I HAD ONE WAS A FIRE LIEUTENANT AND CAPTAIN. I LOVE THESE GUYS. I UNDERSTAND THAT SOMETIMES THEY AGREE WITH YOU AND THEY DON'T OTHER TIMES. BUT YOU HAVE TO MAKE TOUGH DECISIONS. I DON'T ALWAYS MAKE THE RIGHT PLAY WAS MADE IN THEIR BESTINTEREST.

LARRY: I APPRECIATE YOUR RESPONSE. LATE LAST WEEK WE COVERED ON THIS PROGRAM, BILL CLINTON AND SENATOR CLINTON RELEASED THE RESULTS OF THEIR PORTFOLIOS SALE AT A BLIND TRUST AND LISTED ALL THE STOCKS AND EVEN THE SPEECHES AND THE SPEECH FEES THAT MR. CLINTON HAS MADE. WILL YOU DO THE SAME?

GIULIANI: I'VE LISTED ALL THE SPEECH FEES OVER THE YEAR THAT ENDED WITH THE FINANCIAL DISCLOSURE FORM. I THINK I HAVE LISTED ALL THAT

LARRY: STOCK SALES PORTFOLIO HOLDINGS?

GIUILIANI: I OWN ALL INDEX FUNDS.

LARRY: HOW ABOUT AN ISSUE THAT MY WIFE IS CURIOUS OF.

GIULIANI: RELATIVELY SMALL AMOUNT.

LARRY: PEOPLE WANT TO KNOW ALL ABOUT THE GUILIANI BUSINESSES. YOU AS A GOOD CAPITAL ONE TO HAVE BUILT UP YOUR WEALTH. THAT IS WHAT FOLKS SHOULD DO. BUT THEY'RE ALL ARE ALL THESE COMPANIES. GUILIANI GROUP AND PARTNERS AND SECURITIES AND SAFETY, CAPITAL, WHICH I THINK YOU SOLD, AND THEN GUILIANI LEADS EQUITY AND ASSOCIATES. PEOPLE ARE ASKING OUR THEIR CONFLICTS? WILL YOU DISCLOSE EVERYTHING?

GIULIANI: WILL DISCLOSE EVERYTHING WE HAVE TO. I HAVE READ ARTICLES ABOUT ALL THIS AND I THINK IT DESCRIBED ALMOST ALL THE CLIENTS. MAYBE ONE OR TWO SMALL ONES HERE ARE THERE. AS FAR AS I CAN TELL ALL OF THEM HAVE BEEN DISCLOSED. THE LAW FIRM IS VERY LARGE AND THERE'S A LOT OF CONFIDENTIALITY I DON'T KNOW ABOUT THAT. BUT ALL THE GUILIANI ENTITIES HAVE BEEN DISCOVERED.

LARRY: ARE THERE PEOPLE WORKING IN IT GUILIANI FOR PRESIDENT ARE STILL EMPLOYED BY THE GIULIANI COMPANIES?

GIULIANI: PEOPLE THAT VOLUNTEER. THE TWO THINGS ARE DONE SEPARATELY. PEOPLE WORK FOR THE CAMPAIGN GET PAID. SOME OF MY PARTNERS, LAW FIRM PARTNERS, PARTNERS OF MY BUSINESS OBVIOUSLY HAVE VOLUNTEERED THEIR TIME. SOME OF MY PARTNERS IN THE LAW FIRM ARE WORKING FOR DEMOCRATIC CANDIDATE IS.

LARRY: REALLY? IN THE LAW FIRM YOU DO.

GIULIANI: THE LAW FIRM TO ACTUALLY THERE WAS AN ARTICLE THE LAW FIRM DONATED MONEY TOO DEMOCRATIC CANDIDATES AND CAUSES AND THEY MADE A BIG DEAL OUT OF IT. I DON'T KNOW WHAT THEY'RE WORKING FOR THEM BUT THEY DONATED MONEY.

LARRY: HAD BEEN SEVERED ALL YOUR CONNECTIONS?

GIULIANI: NO I HAVE VERY LITTLE TO DO.

LARRY: BUT YOU STILL HAVE SOME CONNECTIONS?

GIULIANI: SHERMAN NAME IS THERE.

LARRY: AT SOME POINT YOU SEVER EVERYTHING?

GIULIANI: YES. I HAVE TO SEVER MY NAME IF I GOT ELECTED. AND AS I GO INTO FULL-TIME CAMPAIGNING I WILL HAVE TO DO AN OFFICIAL LEAVE OF ABSENCE.

LARRY: DURING THE PRIMARIES?

GIULIANI: I WOULD OF THOUGHT DURING THE GENERAL ELECTION IT SEEMS TO ME WAS ALL THESE MOVING UP THERE PROBABLY DURING THE PRIMARIES. SO RIGHT NOW I WOULD SAY I'M 95% CAMPAIGNING MAY BE FIBER 10% TRYING TO SETTLE UP LAST-MINUTE THINGS.

LARRY: A COUPLE OF ISSUES ON THE 12 COMMANDMENTS. 12 COMMITMENT SUMS ARE. LET ME READ YOU ROBERT RUBIN SAID LAST WEEK FORMER CLINTON TREASURY SECRETARY, BY ALL MANAGERS SHOULD PAY HIGHER TAXES MORE THAN TWICE THE CURRENT TAXES OF CAPITAL GAINS OF 15%. HE WANTS THEM TO PAY THE 35% CORPORATE TAX. THEN HE SAID QUOTE LOWER RATES ON CAPITAL GAINS HAVE NOT CONTRIBUTED ONE IOTA TO THE ECONOMY. YOUR THOUGHT ON MR. RUBIN?

GIULIANI: I WOULD SAY I WOULD HAVE TO DISPUTE THE SECOND STATEMENT. FIRST OF ALL I DON'T LIKE RAISING TAXES AT ALL. SO I'D LIKE THE FIRST PART OF THE STATEMENT. BUT THE SECOND IS JUST THE OPPOSITE. THE LOWER RATE ON CAPITAL GAINS HAVE CONTRIBUTED A GREAT DEAL TO INVESTMENT. I HEAR THAT ALL THE TIME AND I HAVE SEEN STUDIES THAT SHOW THAT. IT MAKES SENSE TO ME FROM MY OWN POLICY AS MAYOR OF NEW YORK. AND I LOWERED TAXES AND COLLECTED MORE MONEY. I LOWERED INCOME TAX BITE ABOUT 24%. AND COLLECTING 40% MORE IN REVENUES FROM A LOWER TAX AND THE HIGHER TAX. THE CAPITAL GAINS TAX MAY BE MORE SENSITIVE.

LARRY: HOW DO LIKE IT THAT CONGRESS SEEMS TO BE SINGLING OUT EIGHT NEW YORK BUYOUT FUND IS THE SCHWARTZMAN. AN IPO AND THEY SAY WE WILL DOUBLE YOUR TAX RATE?

GIULIANI: THE SINGLE BIGGEST CONTRIBUTOR TO NYC SURPLUS EVERY YEAR WAS THE WALL STREET BONUSES. WALL STREET HAD BID BONUSES AND YOUR CITI HAD BIG SURPLUSES. WALL STREET HAD A BAD YEAR IN NEW YORK CITI WAS STRUGGLING. THIS IS OUR BIGGEST INDUSTRY. SO IT WOULD SEEM TO ME LIKE STEEL USED TO BE TO PITTSBURGH, THAT THE CONGRESSMEN AND SENATORS AND CONGRESSMEN SHOULD BEFIGHTING.

LARRY: CORN AND IOWA.

GIULIANI: LIKE AND I WHAT SENATOR ASKING FOR A HIGHER TAX ON CORN AND. ARE NOT TALKING ABOUT ETHANOL IF YOU ARE FROM THE MIDWEST.

LARRY: SENATOR HILARY CLINTON THAT U.S. CORPORATIONS ARE NOT PAYING THEIR FAIR SHARE. AND THEN SHE SAYS IT IS VERY IMPORTANT, IT IS IRRESPONSIBLE TAX BREAKS FOR UPPER-INCOME PEOPLE MUST EXPIRE. I WANT TO KNOW WHAT IS YOUR VIEW ON THAT? IS THERE NOW IN THE DEMOCRATIC PARTY, A WAR ON PROSPERITY?

GIULIANI: NO QUESTION ABOUT IT. THIS IS THE SAME SENATOR WHO SAID WE HAVE TO TAKE THINGS FROM YOU FOR THE COMMON GOOD A FEW YEARS AGO. WHAT DOES THAT MEAN? I THINK IT MEANS SHE AND THE GOVERNMENT CAN FIGURE OUT BETTER THAN YOU AND I. I TELL PEOPLE MY GENERAL PHILOSOPHY IS I WILL GIVE A FEW THINGS BACK TO YOU FOR THE COMMON GOOD BECAUSE YOU WILL SPEND IT IN A WISER WAY AND CREATE MORE JOBS AND SPEND MORE INTELLIGENTLY. THIS A VERY A VERY DRAMATIC DIFFERENCE. BETWEEN MY PHILOSOPHY AND THERE'S. AND BY HISTORY AND THERE'S WHICH HAS BEEN A HISTORY OF LOWERING TAXES AND SEEING THE RESULTS OF THAT WORK. TAKING AN ECONOMIC ANEMIC ECONOMY. WHERE YOU CALL THOSE POLICIES I HATE TO PUT A TITLE ON IT.

LARRY: I KNOW I PUT THEM ON

GIULIANI: YELLOW IN MY SHEET. YOU COULD HAVE DONE IT ON BAD.

LARRY: ONE IS REFORMING THE LEGAL SYSTEM WITH TORT REFORM. WE HAD SENATOR THOMPSON ON HERE A WEEK AGO. HE FEELS THAT TORT REFORM CLASS-ACTION LAWSUITS EVEN VENUE SHOPPING IS OKAY AS LONG AS THE STATES DO IT. IT IS NOT SENDING THE FEDERAL GOVERNMENT SHOULD DO YOUR THOUGHT?

GIULIANI: I WILL TELL YOU MINE. IT WAS A VERY BIG ISSUE FOR ME AS MAYOR OF NEW YORK AND A VERY BIG PROPONENT OF TORT REFORM. INCLUDING MEDICAL MALPRACTICE, BUSINESSES, THERE SHOULD BE CAPS ON DAMAGES.

LARRY: BUT PRESIDENT GIULIANI ENACT IT.

GIULIANI: UP WITH CERTAINLY RECOMMEND IT.

LARRY: IF SENATOR THOMPSON SAYS NO.

GIULIANI: FIRST OF ALL PROCEDURE RULES HAVE TO DO WITH MANY LAWSUITS. MAYBE IT IS MY HISTORY. I WANT A VERY BIG CASE FOR BARRON'S AND DOW JONES YEARS AGO IN WHICH I GOT PART OF MY LEGAL FEES PAID BY THE OTHER SIDE. I GOT THAT THEY BECAUSE I BROUGHT BY SHOWED THE CASE WAS BROUGHT IN BAD FAITH. I AM A BIG PROPONENT OF STRENGTHENING THE RULES OF CIVIL PROCEDURE. WHICH BASICALLY SAYS IF YOU LOSE A LAWSUIT YOU BETTER BE PREPARED TO SHOW YOUR BASIS FOR IT OR YOU SHOULD PAY THE OTHER SIDE LEGAL FEES. OF A BUY TO SEE A COMPLETE ENGLISH BUT I EIGHT DON'T KNOW IF THAT IS REALISTIC. IN ENGLAND THE LOSER PAYS THE WINNER. IF YOU LOSE IT IS OUR BURDEN TO SHOW A GOOD-FAITH BASIS. OR YOU HAVE TO PAY SOME ARE ALL OF THE LEGAL FEES. WE ARE KILLING THE MEDICAL PROFESSION. WHEN I WAS THE MAYOR OF NEW YORK ALWAYS PUTTING ALL $550 MILLION A YEAR IN LEGAL FEES, IT JUDGMENTS, CLAIMS, BECAUSE IRAN THAT THE SECOND LARGEST OUTPUT SYSTEM IN THE COUNTRY. THIS IS A TERRIBLE BURDEN, A TERRIBLE BURDEN ON THE MEDICAL PROFESSION AND OUR ECONOMY. FEDERAL LAWSUITS HAVE A LOT TO DO WITH ALL OF THESE CASES. STATES CAN DO WHAT THEY WANT BUT IT WOULD BE A GOOD MODEL FOR THEM. STATES LIKE TEXAS HAVE DONE A GOOD JOB OTHERS ARE BEHIND.

KUDLOW: LAST ONE.WHEN YOU WERE HERE LAST, YOU TOLD US YOU'RE A FREE MARKET GUY, A FREE MARKET CAPITALIST, WARMED UP EVERYTHING, MY HEART...I FELT REALLY GOOD ABOUT THIS

GUILIANI: RIGHT

KUDLOW: NOW ONE OF YOUR COMMITTMENTS IN THIS THING IS THE ENERGY INDEPENDENCE AND I WANNA ASK YOU, NOTHING WRONG WITH ENERGY INDEPENDENCE PER SE, BUT THIS BILL BEFORE CONGRESS IS LOADED WITH SUBSIDIES, ETHANOL SUBSIDIES, COAL SUBSIDIES, ITS GONNA TAX ENERGY, NOW IF YOU TAX ENERGY COMPANIES YOU'LL PROBABLY GET LESS PRODUCTION OF AN ENERGY COMPANIES. IF YOU SUBSIDIZE SOMETHING, YOU'RE GONNA GET MORE SUBSIDIES, BUT IT STRIKES ME ITS 1970'S STYLE INDUSTRIAL PICKING WINNER INDUSTRIAL POLICY PICKING WINNERS AND LOSERS. THEY EVEN HAVE PRICE FLOOR SUPPORTS IN THIS THING. ARE YOU REALLY FOR THIS HODGE PODGE OF 70'S STYLE JIMMY CARTER ENERGY POLICY?

GUILIANI: I DONT LIKE...I DONT LIKE THE TAXES, I DONT LIKE THE FEES AND THE TAXES. I THINK THATS ALWAYS A MISTAKE. WITH VERY VERY FEW EXCEPTIONS IT ALWAYS LEADS TO REGRESSION RATHER THAN GROWTH. I HAVN'T TAKEN A LOOK AT THE BILL IN GREAT DETAIL. I THINK SOME HELP FOR SOME OF THESE INDUSTRIES THAT ARE TRYING TO COME ALONG IS WORTH IT, BUT I THINK BY AND LARGE YOU SHOULD LEAVE IT TO THE PRIVATE MARKET.

KUDLOW: I MEAN HOW DO WE KNOW WHICH INDUSTRIES-THATS ALWAYS THE MYSTERY?

GUILIANI: RIGHT

KUDLOW: HOW DO WE KNOW? WHY NOT USE THE OPEN MARKET PRICE TO GIVE A SIGNAL TO WHERE YOU SHOULD INVEST?

GUILIANI: I THINK THE ONLY CAVIAT TO THAT WOULD BE AND THE LAST 2 PARTS OF WHAT YOURE TALKING ABOUT ARE...THE FIRST PART HEALTH AND ASSISTANCE I THINK THE FACT THAT YOU DON'T QUITE HAVE A FREE MARKET

LARRY: THANK YOU FOR COMING.

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