• This is a rush transcript from "Your World With Neil Cavuto," July 9, 2009. This copy may not be in its final form and may be updated.

    (BEGIN VIDEO CLIP)

    REP. JOHN BOEHNER (R-OH), HOUSE MINORITY LEADER: And, you will remember, the Democrats claimed, no, no, no, no, no, we're not going to — we're not going to fund this. It's not in the bill. It's not going to happen.

    Well, guess what? Sixteen million dollars of the stimulus money was appropriated to take care of the salt marsh harvest mouse.

    (END VIDEO CLIP)

    (LAUGHTER)

    STUART VARNEY, GUEST HOST: It's back.

    Welcome, everyone. I'm Stuart Varney, in for Neil Cavuto. This is "Your World."

    Video: Watch the 'Your World' interview

    The salt marsh harvest mouse. GOP leaders say funding for Speaker Pelosi's pet project is coming out of your stimulus money. Will this furry critter, along with bad press over the lack of stimulus jobs, kill any chances for a stim plan two?

    Let's talk former House Speaker Newt Gingrich.

    Mr. Speaker, welcome to the program.

    NEWT GINGRICH, FORMER SPEAKER OF THE HOUSE: Good to be with you.

    VARNEY: This is — this is terrible publicity. The stim plan one is widely suggested it's not working. Voters are turning sour on it. Are we still get, do you think, stim plan two?

    GINGRICH: Well, I think we need a national debate over getting to a real stimulus bill.

    This was not a stimulus bill. This was a politician bailout bill. Most of the money — 90 percent of the money spent so far, according to Andy McCarthy, went to paying off state and local governments, so that they could avoid real change.

    This is clearly a pork barrel bill, as you just reported, $16 million to San Francisco for a mouse, I think probably indefensible in the current economic environment.

    We need a real stimulus bill. And here's the challenge. A real stimulus bill would have a 50 percent reduction in the Social Security and Medicare tax, including the employers' match, so that every small business in America could hire more people and could grow faster.

    A real stimulus free market bill would have a zero capital gains rate, like China, would have a 12.5 corporate tax rate, like Ireland, would eliminate the death tax, which 80 percent of the American people want.

    That would be a real stimulus bill.

    VARNEY: Yes. Yes.

    GINGRICH: So, I think — I think, frankly, Republicans ought to take up willingly the idea of, let's pass a real stimulus bill, cut — take all the money that has not been spent so far, which is about $500 billion of that stimulus package, convert that tax cuts for the private sector...

    VARNEY: Yes.

    GINGRICH: ... to help small businesses.

    (CROSSTALK)

    GINGRICH: And you would be in a better future.

    VARNEY: Mr. Speaker, you're using the magic words, tax cuts.

    Do you really think the Democrats and the Obama administration and could completely change course? Because stim plan was all about more government spending and borrowing, the exact opposite of Ronald Reagan's tax cuts to stimulate private enterprise. Do you think that they could really turn full circle in the way you are describing?

    GINGRICH: I think, first of all, when 64 percent of Californians vote no on more spending and more taxing, as they did in May, that is a pretty big signal.

    That is a state where President Obama got 61 percent of the vote. I think, second, when you see a 13 percentage point drop in his approval rating in Ohio this week, that is a signal. There is a brand-new poll the Republican Governors Association did. And, in New Jersey, by 67-29, the citizens of New Jersey want government to make tough spending decisions to keep taxes down by cutting spending...

    VARNEY: Yes.

    GINGRICH: ... rather than spend more money on the stimulus.

    No, I'm just suggesting to you, as the Democrats face 9 percent, 10 percent, 11 percent unemployment, they are going to have to change their tune, or the country next year is going to change them.

    VARNEY: You know, in Ohio, President Obama's approval ratings have dropped 14 points, I believe, in the space of two months.

    Let me just take you to Vice President Biden, who was in Ohio today, talking about the stimulus plan and saving jobs. Listen in.

    (BEGIN VIDEO CLIP)

    JOSEPH BIDEN, VICE PRESIDENT OF THE UNITED STATES: So, when they say we're not saving jobs, count the cop who still has their job. Count the teacher, thousands in this state, who will be showing up in the classroom in September, and would not be able to but for this.

    (APPLAUSE)

    (END VIDEO CLIP)

    VARNEY: So, Mr. Speaker, he says, look, stimulus one is saving jobs.