FOX News Exclusive

" Welcome everybody I'm Neil good and other Fed chief now says the economy is pulling out of a recession and could soon be growing again later this year. Just as President Obama is planning billions in new tax hikes on business. Meg Whitman says this is no time to be hiking taxes anywhere. The former eBay chairman should know C building bed from a company -- just thirty employees to one with 15000 workers and eight million dollars in revenues. Now she wants to do the same forecast that California. And his running for governor."

" In a rare national appearance Meg Whitman joins me now for this exclusive chat. Make good to have you thank you budgeting act I -- see you running edited in he has so many times in -- capacity that I guess it says something about these times. A that a woman who made a fortune and created a behemoth. You know. Selling stuff. On the Internet who is going to try to come to California's rescue."

" Well I looked at the state of California. And we are in big trouble in California it's far worse actually even the nationally and I looked at the high unemployment rate the crumbling infrastructure that K through twelve education system that is now rated 48. At -- fifty states does that simulate yes and businesses are leaving California we are bleeding jobs to tell if want to comment. Arizona Colorado Texas Utah Nevada -- you know what I just refused to let California fell. I'm going to try to step in and see if found is some the skills I had to be banned and other places can be brought it to government."

" Then there was in your fine state a couple of weeks ago for the tea party. And -- Sacramento where she become governor this will be sworn in."

" And why those folks I talk to."

" She did both parties think they are motivated Democrats stated spending. They -- taxes going up to your state and the Republican governor and democratic legislative -- letting it happen."

" How do you say on different what he's well I think it's about focus now there's three things we have to focus on first is job creation and job retention in California. Because unless we get the economic engine going again in California I'm not sure anything else we want to do with pop panel to the engine go on when there's no cash to get well the first as we have to make it far more business friendly place to do business -- Streamline regulation. We have to reduce taxes and we have to actually be really interest to them focused on our business is happy in the state who's leaving how can we stop them and we are going to have to stand up and complete a national trend you're talking to because there is a trend -- more government --"

" And the guys bouncing that."

" Let's and number valid reasons is very popular in your state that is present mom well I think we need to complete change in terms of how we welcome businesses and keep businesses in California. The second thing is State's spending. We have a spending problem of epic proportions and I'll -- a 150 billion dollar budget. And it is not sufficient energetic government and bureaucracy has grown up over so many years Larry always say that Arnold Schwarzenegger weekend and after the referendum. He was going to be different determinant it was going to stuff -- got where it's well I have run large organizations I've balanced budgets -- created jobs or you're now one point three million people make their living selling honey that I. And I understand how to lead large organizations and one of the biggest differences of course is on one very large organization will would you consider hulking any of the State's assets online. Well the first thing we have to do is get to streamline government we have to do things. I'm much better much more efficiently as we watch this technology says we listen and -- god -- saying but it never out. Well it needs to happen because Californians can no longer afford the government they have we have got to give them a government that they deserve and works for the people. And I know it has been said. But you know I think it's about time we tried to apply business to running the state a little bit more like a business because we'll have to maybe so but your billionaire."

" In his and you reminding me the first question as soon as if you will be a little less money. But. A lot of people can't relate to do in office and and they did want to know. Especially in California where a lot of wealthy businessman and women have tried for various statewide offices and an almost always -- You could argue Arnold Schwarzenegger was an anomaly."

" Never happens it happens a lot of other states that doesn't happen in your state went well. I mean I think the thing that I bring to the party is I know a lot about small business and even was a tiny -- a threat thirty people four point seven million dollars in revenue which we grew to a very large business I understand how to create jobs understand how to create the conditions for small businesses to grow and thrive."

" And I wouldn't I'd say."

" It did would you -- cut taxes right well the first thing we got to streamlined regulation. The permitting process the competing. And agencies that try to regulate we built the building in armed Sunnyvale for PayPal. Two and a half years to break ground -- three consultants to navigate the labyrinth of California regulations. Which -- OK for big company but you're a little company takes eleven permits and really didn't return a national level now where they're trying to re regulate."

" Banks financial institutions because a lot of this loves it here. Approach to business the Obama folks claim during the bush years LED's. Now the problems we saw so we have to outsmart regulations and we have to enforce the rule would you we regulate the financial industry."

" Well I think there's certainly new forms of regulations are going to be required -- would you raise texas' he wants to I would not be raising taxes today at all because he says the 95% of the disease is not right. Well -- the crazy thing that's happening California for the average family they're getting an 800 dollar rebate from the Obama administration. And they're going to have and the average family making 45000 dollars a year or two children is going to fanned 732. Of it to Sacramento. Without the additional study area."

" Have to be very pragmatic and and you already -- of that -- you know your bureau of your liberal a lot of the social issues abortion what have you. You're deemed to fiscal conservatives the conundrum of a business person like us now. That's why the real core conservatives in the party aren't quite sure what's and they can view how old do you allay their fears that you're not there Canada. So I have really as I said the number one priority is we have to revive the economy in California as I said we do not create jobs and we don't retain jobs in California doesn't matter what else would do that core group Islam says it's all money -- state spending on illegals. That that is a big reason why it's an adolescent. I just want to remember because it I think he told the San Francisco chronicle not too long ago. Whether they're legal or illegal. Those benefits go to children we have to protect children referring to benefits that must be maintained for them that was a very altruistic very decent. Personal position to take but it is immediately created a firestorm. That you were catering to illegals."

" That's not -- we have to secure the border. We have to -- ultimately hold employers accountable for hiring only documented workers. We've got to take out Sanctuary Cities as you know several -- is a Sanctuary City there's an ordinance on the books but -- protects illegal aliens and criminal illegal violence we have to stop that. At the same time we have to view immigration in California as an economic opportunity. Both of -- low skilled wage level as well as the high skilled Ph.D.s in math science computer science because we rely on them to continue to grow our economy. So we have to be tough on illegal immigration but we can't lose sight of the economic opportunity that immigration provide a."

" But now let's go back to this immigration -- to a governor you have spoken highly of him on his former governor Pete Wilson spent a decade since he Russell office but he high taxes and -- Now you're an old woman is talking about cutting taxes but one of the guys to compliment as a guy who raised them."

" Sure at every time in history as a different time. The choice that has been put before Californians with a false choice that you either have to cut services cut firefighters cut teachers cut placement. Or raise taxes it's a false choice we have to first and foremost make government spending more efficient."

" There's a thirty they do well balanced budget requirements. Of course so -- its heavy amounts of light so even if you cut taxes right I mean. Lot of conservative supporter -- little support dot -- left but the near term effect to cutting taxes at least up trying to sell you lose revenue we'll the first thing I would do is go after the cost of the bureaucracy."

" There's 345000. People who work for the state of California is that right it's an enormous number and the bureaucracy by the way the number of people who work for the state is 2% higher today than it was a year ago. If you had seen the revenue declined but the state of California had seen in your business you would have no choice but to cut headcount until the company's healthy again. And did governor and the legislature has refused to cut headcount and I when I distrust -- Schwarzenegger I admire much of what he's done workman's compensation reform the redistricting initiative. But I don't believe the negotiation he came to in this most recent budget crisis was in fact in the best interest -- you Californians -- the Tomlin didn't he didn't stick to his principles of low taxes efficient government and getting the economy don't."

" President Obama went after multinational corporations and not raise. Whole hullabaloo in -- Silicon Valley. Many even strong Obama supporters saying. Give it to very companies. Is that we're growing and -- a lot of Americans what did you think that."

" Well I think you know we have to incentivize people to keep jobs in America. Com and also let them get a cost structure that allows them to compete on a global basis. And I will you four against what the president's proposed well what he's trying to do right is eliminated the lower corporate tax rates overseas. I think there's actually some small rationale to back but we we have to remember he's making villains these companies that Cisco Systems among right."

" I don't hiring abroad to keep themselves viable here -- by that I don't think we should make companies villains."

" It doesn't mean that every CEO is perfect her every company is perfect but companies small and large are the engine of job growth of the engine of the economy so whenever -- the way the president has nullified a lot of this is sometimes heard deserved reasons NN."

" Street bankers aren't -- brokers aren't trusted were bailing out folks who can't."

" Get out of their own way -- putting -- and certainly some of the most egregious cases on Wall Street obvious cases of plot fraud. But I believe most business owners particularly small business owners are honest and tried to do the right thing and they are big business I think."

" Many of the victims most of its most big businesses are also tried to do -- unit zero friends and Silicon Valley many of whom support the president wouldn't and supported him aggressively. Have they really -- any disappointment or they find with what he's talking."

" I think everyone wants the president to be successful I know that right I mean -- but I think everyone's a little bit concerned about the size of the deficit so we are running. The nature of the spending programs which were not targeted towards job creation pertinent you're you know mostly I think we should have targeted. Most of that stimulus package to job creation it should have been computer targeted to tax cuts many conservatives in -- and that's and they say yes I am I you know what I -- done is like first and foremost would have -- had -- we create the most number of jobs the fastest chuck Schwab said something interesting the other day he said there's six million businesses in the United States have that we create an incentive for every single one of them to hire one more person. So now we need some six million jobs owned."

" Let me get yours since you won't work didn't want to Mitt Romney -- the you know. What in the beginning Mitt Romney might run for president again would you support him if he -- I would support that I -- admitted that."

" Just a fantastic individual you know as a tremendous amount about the economy he has traveled all over the country and on the big supporter that's -- that Sarah Palin. You know Sarah I think it and an admirable job in the position in which she was dropped into which was an extraordinarily difficult situation she was dropped in the last inning. A baseball game where the Republican team was down by a couple of runs."

" And I think she comported herself admirably Jeb Bush said the other day made the party's got to get -- paraphrasing its fixation with Ronald Reagan move on what he's."

" I think we need to go back to our core values that made Republicans are we going to lead with our power Alley which is the economy. How -- we create jobs how we get government spending under control and -- efficient. Energetic a -- how we encourage inspired individuals to create wealth because I don't believe government creates wealth. I think it is individuals and small businesses that create wealth. And I think the Republican Party. We can't lead with a social issues would lead with our power issues power Alley issues which are not defensive which everyone can buy into. And let's leave with what we know most people want. And is the tried and true formula for creating a strong economy which allows you do many other things."

" I'm Jack Kemp -- recent test of -- Republicans needed to reach out to minorities and fails in that regard. Would you are you going to do the --"

" So why do three things in this campaign and I want to obviously reach out to be on the conservative base of the Republican Party in California because they are very very important. But secondly I want to reach -- to women who have left the Republican Party in extraordinary numbers. The second group is eighteen to point nine girls we are losing share of eighteen to 29 year old from the Republican Party at an alarming rate and we have to stop that because they are voters what's the number one when you can do them. I actually think you're talking about jobs and the economy if you're in college I have to college boys they're very worried about what they're going to do when they get out."

" And if you're young professional you worry that you're the last stand usually the first what I really learned details of a -- in -- never get -- account is that I guess -- system. I'm -- thank you very very much good seeing you may movement course you made you today that it culture phenomenon. Now running for governor of California who -- wouldn't keep watching they're very close thank you very much thanks tonight when we come back."