DATE: August 13, 2007
PROGRAM: "Kudlow & Company"
TIME: 5:30 PM ET
The following is the unofficial transcript of a CNBC interview with former Arkansas Governor and Presidential Candidate, Mike Huckabee, on CNBC's "Kudlow & Company" today at 5:30 PM ET. All references must be sourced to CNBC.
In the interview, Huckabee discusses his tax plan which would would create a new national sales tax dubbed the "fair tax" and would abolish federal payroll and incomes taxes.
LARRY KUDLOW, host: All right. Governor Mike Huckabee, welcome to KUDLOW & COMPANY. Congratulations on your strong second place showing in the Iowa straw poll.
Governor MIKE HUCKABEE: Well, thank you. It was a big day for us and I think it proved that the message is working and it's just a matter of now bringing the money in to keep us going.
KUDLOW: I want to focus on what a lot of people have told me, that you had substantial support from the fair tax group, that they were in Iowa, they were helping you, they were working phones, they were there at the rallies. It's a fascinating substory which I just got wind of today because it's not reported in any of the newspapers, including your front page piece in The New York Times. First of all, sir, was the fair tax crowd instrumental in getting you a second place finish?
Gov. HUCKABEE: I think they were very instrumental, and frankly, I think that's good because they know that I'm the one candidate who's not just willing to sign the fair tax bill, I want to go sell it. I believe in it. I think it would revitalize the American economy. I think it would do wonders to bring capital back to this country, rather than chasing it off the shores, and they know that I'm passionate and committed to it.
KUDLOW: Let me just walk through quickly, for our viewers who may not be familiar with the flat tax--the fair tax. It's a national sales tax and it has a single rate, is that right?
Gov. HUCKABEE: That's correct, and it eliminates all the taxes on productivity, which is really how we penalize America. We penalize it by taxing income, whether it's corporate or individual, taxing savings, capital gains, dividends, any type of earning. We essentially say that if you really work hard, if you take risk, we're going to really make you sorry you did it.
What we really would do with the fair tax is to eliminate taxes on productivity and have a simple consumption tax on items that are purchased new.