This is a rush transcript from "Your World," November 30, 2011. This copy may not be in its final form and may be updated.
NEIL CAVUTO, HOST: Boy, if you were to ask folks yesterday whether November would be a positive month, most would have probably told you, no way, it looks regrettable, but November is not going to be a gainer like October.
That was then -- 24 hours later, this is now an across-the-board gain for markets pretty much across the globe today on the month, turning at least the Dow into positive territory, not by much. But it took a nearly 500-point advance, largely on optimism that Europe and we might have our proverbial acts under control. They have said that before, but you enjoy the run-up while you have it, and it was an appreciable run-up. Meanwhile, Harry is in one heck of a hurry. Senate Majority Leader Harry Reid reportedly looking to push $1 trillion spending bill through Congress come next month. He says it is needed to keep the government running next year.
Kentucky Republican Senator Rand Paul says we should be talking about cutting, not spending.
This does not seem to be that, Senator.
SEN. RAND PAUL, R- KY: Well, you can say that again.
We are supposed to pass appropriations bills. We divide the budget up into about 12 different sections. We are supposed to pass the budget. Harry Reid still hasn't passed a budget yet. We have passed very few appropriations bills. And the problem up here is a spending problem. We have increased spending by 25 percent in the last three years, since President Obama came into power.
We have an addiction to spending, but I think the illusion out there of marketplace gaining today that is an illusion. Europe is in deep trouble and I think that trouble is coming here.
CAVUTO: All right. So whatever happened today in the markets or elsewhere, this is just temporary, I guess, by your thinking.
Now, there is this payroll tax issue, too, that comes up, and they hope to secure an agreement that would call for someone paying for this. You might hear this idea advanced by Democrats that millionaires should.
How do you stand on this?
PAUL: Well, I find it perplexing because I thought Democrats wanted to save the Social Security system. Social Security is $6 trillion short of money, and they are reducing the revenue stream that comes into Social Security. I think that could potentially be a problem. I don't understand it. Why would you reduce the amount of money coming into Social Security when it is already $6 trillion short?
CAVUTO: You know, though, Senator, it is the first time I'm hearing a lot of Republicans all of a sudden say a tax cut has to be paid for. This was not the argument I heard when we were talking about extending the tax cuts for the rich or what have you. So it just seems like you guys are inconsistent.
PAUL: Well, I would actually just as soon pay for all of them.
And actually whenever we do offer a tax proposal to reduce taxes, I would just as soon have a spending proposal -- since I have been here, I have been proposing spending proposals that would reduce spending when we reduce taxes.
This issue about what Republicans stand for or not, it gets your father upset I know on the presidential campaign circuit. He has hinted, although he hasn't stated outright, that he is so frustrated, there are these rumors he might be a third-party candidate.
I talked to Gary Johnson, the former New Mexico governor, who doesn't like his treatment within the Republican Party, that he is looking at a third-party run himself. Buddy Roemer. I could go on and on, all men who feel that they have been mistreated by the party, so now they might bolt from the party.
What do you think of that?
PAUL: I have always been in favor of the Tea Party movement staying within the Republican Party as much as they can.
But the Tea Party movement does say that it is not good enough just to be a Republican. They want Republicans who are conservative, so they have gotten involved in the primaries to try to determine who are the Republicans...
CAVUTO: Does your father share that view, Senator, that he believes to, stay in the Republican Party...
PAUL: Well, you know, he kind of speaks for himself.
He has rarely asked me to speak for him. But what I would say is that I take him at his word. He said repeatedly that he has no plans to run as a third-party candidate. I can't see him doing it, to tell you the truth. So I think it's very unlikely, but I can't speak for him and speak for circumstances.
But I can tell you that I'm not in favor of having a breakaway party or having a Tea Party out there that is separate, because I think what would happen is what happened when Ross Perot ran. Bill Clinton won Kentucky twice not because he was that popular in Kentucky, but because Ross Perot took away Republican votes.
CAVUTO: All right, good points. I forgot about that.
Senator, it's always good having you on. I just was starting a family fight here, seeing what I could drudge up. Thank you. Good seeing you again.
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