This is a RUSH transcript from "The O'Reilly Factor," June 9, 2011. This copy may not be in its final form and may be updated.
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BILL O'REILLY, HOST: In the "Personal Story" segment tonight: Atlanta businessman Herman Cain wants to be president, and in the latest Fox News poll, seven percent of Republicans are currently supporting him. By the way, some key members of Newt Gingrich's staff quit today. Not good news for him. Anyway, Mr. Cain is a former CEO of the Godfather Pizza chain and ran for the U.S. Senate from Georgia. He was defeated in 2004. But now he is getting national attention.
(BEGIN VIDEO CLIP)
STEPHEN COLBERT, HOST, "THE COLBERT REPORT": I say we should listen to the man who made his fortune selling bacon cheeseburger pizza. Americans don't have time to read complex legislation. They are too busy getting their hearts restarted. President Cain will not tolerate legislation longer than a pizza menu.
(END VIDEO CLIP)
O'REILLY: All right. Mr. Cain joins us now from Atlanta. You know, that's a compliment to you that, you know, you have broken through to those pinheads over there on "The Colbert Report." So, they are paying attention to you.
HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: Yes. That's a good thing, Bill.
O'REILLY: All right. Now, if there is one -- and I mean one -- overriding reason why you should be president of the United States, what would that reason be?
CAIN: That reason would be it's time to have a problem-solver that knows how to apply business skills to solving the problems of this country in the White House. We have the wrong person in the White House. He has put the wrong gas in the tank of this economy -- spending. We need to put some different things in the tank of this economy so we can grow it. Problem-solving business skills.
O'REILLY: Give me one example of what President Obama has done wrong in your opinion.
CAIN: He did not surround himself with the right people.
O'REILLY: Yes, but I -- no, no, no -- I want a nuts and bolts mistake he made on the economy.
CAIN: He didn't lower taxes. He increased regulations. If you stop right there, that's why this economy is not growing, Bill.
O'REILLY: All right. So he didn't stimulate the private sector by giving the folks more money.
O'REILLY: All right.
O'REILLY: Now, we would assume if you were elected president that you would, you know, lower taxes dramatically. Is that correct? You would lower taxes, right?
CAIN: That is correct. I would lower the top corporate tax rate. I would lower the personal rate. And I would also take the capital gains tax rate to zero.
O'REILLY: OK. No cap gains so that would make, you know, capitalists go real happy. Right. But how do you get the $14 trillion debt down when your revenue stream is going to drop, particularly with the cap gains? You are not going to get any money from that sector. How are you going to get the debt down?
CAIN: That assumption, Bill, assumes static analysis. I'm assuming dynamic analysis, which means that if you lower taxes the right way -- if you look at the decade of the '60s when Kennedy lowered taxes. If you look at the decade of the '80s when Reagan lowered taxes -- for the decade taxes went up over 50 percent. It will not take revenue out of the Treasury. Secondly, at the same time you are increasing the growth in the economy, you are taking some hard cuts on spending. You have them going in the right direction.
O'REILLY: All right. Look, look, look. The revenue enhancement came under President Bush. That's the most recent example in the '90s because the capital gains was cut to 15 percent and people invested in the stock market, did well and the revenue came in. You're saying you wouldn't take a dime from that. So if revenue is going to go down, it's going to go down dramatically if you were president. Now you say, OK, I'm going to cut. Now, you're going to have to cut unbelievably, unbelievably, down to the bare bones to, you know, to bring that debt down.
CAIN: Right. But, Bill, you have a major -- I disagree with you on one of your assumptions. It is not going to bring down revenue. This is the myth that has been planted in the heads of a lot of people.
O'REILLY: I don't know where you're going to get revenue from if you don't have cap gains coming in. You're going to -- where is it going to come from?
CAIN: Bill, let's try this. When the capital gains rate is taken to zero, small businesses benefit the most. They put their money into small community banks who loan money to small investors. Big banks are not loaning money to small businesses. This is why this economy is not growing.
O'REILLY: That's good for the folks. It's good for small business. Where is Washington's cut?
CAIN: Washington's cut? Washington doesn't get a cut. Look, Bill…
O'REILLY: I know it doesn't. That's what I'm saying that your revenue stream is going to drop.
CAIN: No. Bill, it's not going to drop.
O'REILLY: All right. You disagree. I'm just posing the question.
CAIN: Not going to drop. OK.