This is a rush transcript from "Hannity & Colmes," October 29, 2008. This copy may not be in its final form and may be updated.

SEAN HANNITY, CO-HOST: And this is a "FOX News Alert." Just a few minutes ago Barack Obama purchased an entire half-hour on three of the broadcast networks at $1 million a pop as well as several cable channels to air what amounts to an infomercial.

Here it is.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: As president, here's what I'll do. Cut taxes for every working family making less than $200,000 a year. Give businesses a tax credit for every new employee that they hire right here in the U.S. over the next two years and eliminate tax breaks for companies that ship jobs overseas.

Help homeowners who are making a good faith effort to pay their mortgages by freezing foreclosures for 90 days, and just like after a 9/11, we'll provide low-cost loans to help small businesses pay their workers and keep their doors open.

None of that grows government. It grows the economy.

(END VIDEO CLIP)

HANNITY: Joining us now with reaction is former New York City mayor, former presidential candidate, Rudy Giuliani.

Mr. Mayor, this Hollywood production, Oval Office set, this overproduced, "Oprahesque," it was just bad — it was embarrassing almost at times. What did you think?

RUDY GIULIANI, FORMER PRESIDENTIAL CANDIDATE: I think — I think two things about it. First of all, I think it shows he's a good scripted candidate. You give him a script, he'll stick with the script. You get him on script, and then he starts talking about spreading the wealth and negotiating without preconditions.

Video: Watch Sean and Alan's interview with Rudy Giuliani

I don't think the American people want a scripted president because when you're president of the United States you don't have a script to work with, you don't have Hollywood to help you.

Second, I think it's a testament to his not keeping his word. I mean the reality is he's spending money because he has broken his word about sticking with the campaign finance limits.

HANNITY: Yes.

GIULIANI: And if he would break his word about that, well, what the heck else is he going to break his word about?

HANNITY: Well, we've got — we've got a tape — I'm going to roll it here in a second — about him — you know he keeps lowering the bar as it relates to, you know, who's going to get tax cuts. But one other thing, it was actually funny and amusing to me because he tried to wrap his socialism, and he is the number one liberal in the United States Senates, he said, you know, he almost sounded Reaganesque.

A new era of fiscal responsibility, spending cuts. We're going to tighten our belt.

GIULIANI: Right.

HANNITY: This guy's going to spend a trillion new dollars, and 40 percent of people that don't pay any income tax are going to get a check.

Now let's go through the different times that he said how he defines rich because they differ quite often.

GIULIANI: Well, I think — I think if you.

(BEGIN VIDEO CLIP)

OBAMA: And we will not raise your taxes. We will cut your taxes.

If you have a job, pay taxes, and make less than $200,000 a year, you'll get a tax cut.

SEN. JOE BIDEN (D-DE), VICE PRESIDENTIAL CANDIDATE: Spreading the wealth was not what he was talking about. All the tax breaks have gone to the very, very wealthy.

For example you have, right now, this year, under the old tax policy that was just put — that was put in by George Bush people, making an average of $1.4 million a year, good people, decent people, patriotic, they're going to get an $87 billion tax break.

What we're saying is that $87 billion — tax break doesn't need to go to people making an average of $1.4 million, it should go like it used to, it should go to middle class people, people making under $150,000 a year.

(END VIDEO CLIP)

HANNITY: It seems to me, we go from 300 to 250, and now it's 200 by him and 150 by Joe Biden, and both of them last year voted to raise taxes on people that make $42,000 a year.

GIULIANI: Well, I mean they can't get their story straight. That's really what it comes down to, and the reality is, we all know this, I mean, they're going to raise taxes on everybody who's paying taxes, and if they're going to give a tax break to the people under $200,000 or under $150,000, 40 percent to 50 percent of those people aren't paying taxes.

HANNITY: Right.

GIULIANI: So they're going to send them a welfare check. This is another way of reestablishing welfare in this country.

After all, Barack Obama opposed welfare reform when he was in the Illinois Senate, he opposed welfare reform. He thought it went too far, so this is another way of starting welfare once again in America.

HANNITY: All right. But — and I agree, and this is — this is what's amazing about this. When you look at a trillion dollars in new spending, if you look at 40 percent of the population that doesn't pay taxes, will get taxes, he tries to sound like he's going to be fiscally responsible, but it's the same thing on the issue.

He brought up the issue of Iraq, and he talked about our troops. When I send them — I'm going to remember if I send them out to, you know, fight that they're your sons and daughters.

Well, in this war in Iraq, even against the advice of Joe Biden, after he accused them of air-raiding villages and killing civilians, his words, then he voted to cut off funding for troops that Joe Biden said would die, that thousands of lives would be lost.

So it's — I felt like I was watching a Hollywood production. Well- scripted, poorly done, actually, and it's just — but nothing is consistent with where he has stood this entire campaign.

GIULIANI: Well, I think it's really insulting to the American people. I mean this was a half-hour of scripted performance, nothing spontaneous about it, nothing real about it. It also is something that he can afford to do because he broke his promise to the American people. Just like he's going to break his promise about taxes.

ALAN COLMES, CO-HOST: You know, it's really.

GIULIANI: Just like — I mean the reality is this amount of money that he spent should — and this infomercial should stand as a testament to the fact that Barack Obama doesn't keep his word.

COLMES: Hey, Mr. Mayor, thank you for coming on our show. I disagree with everything that's been said on the show up until now, by the way, everything.

Barack Obama is very clear that he would lower taxes for everyone if you make $200,000 a year or more and single, $250,000 and more and married, filing a joint return. He's been very clear about it.

GIULIANI: Well, how — how do you explain what Joe.

COLMES: Go ahead.

GIULIANI: Well, then how do you explain what Joe Biden said yesterday about $150.

COLMES: Well, he threw out a number. The actual Obama point is 200 percent or $250 per joint.

GIULIANI: Why can't they — wait a second. Why can't they get their numbers straight if this is a real plan?

COLMES: Well, when Palin and McCain start agreeing, then we can talk about the Democratic ticket. Go ahead.

GIULIANI: Let me — let me answer it at least.

COLMES: Go ahead.

GIULIANI: Isn't this really what we're saying, that neither one of these two guys really knows exactly what they're going to do? They're making it up as they're going to go along?

COLMES: No.

GIULIANI: When Obama has been saying 250, now it's 200, and then Biden says $150,000, don't we have a right to think he's going to break his promise.

COLMES: But Mr. Mayor, he has said.

GIULIANI: . just like he broke his promise — let me finish.

COLMES: I.

GIULIANI: Just like he broke his promise on campaign financing from that. You can't dispute with me that he broke his promise about that, right?

COLMES: And McCain did the opposite in the primary, by the way, when he took.

GIULIANI: What, I didn't ask you about McCain.

COLMES: But wait a second. He has been.

GIULIANI: Didn't he break.

COLMES: Mr. Mayor.

GIULIANI: Didn't he break his promise — didn't he break his promise.

COLMES: Mr. Mayor.

GIULIANI: . about the campaign finance reform act?

COLMES: I know that he never made a promise.

GIULIANI: Not following it.

HANNITY: I have the tape.

COLMES: However, look.

(CROSSTALK)

GIULIANI: I think he said the word promise.

COLMES: The issue here the that — let me get the question out, because he has been very clear all along about the $200,000 for single, $250,000 for joint. He's been very clear about what his plan is.

You may not like his plan. We can argue whether or not the plan is right or wrong for America, but I keep hearing people on your side misrepresent what Barack Obama has said. He has said we have to have enough troops in Afghanistan so we're not air-raiding villages and killing civilians.

GIULIANI: Can we stick with one question?

COLMES: Yes.

GIULIANI: Can we stick with one.

COLMES: Sure.

GIULIANI: Let's go the first one. The $200,000 or less.

COLMES: Right.

GIULIANI: Let's take him at his word. He's going to reduce taxes for people earning $200,000 or less.

COLMES: Right.

GIULIANI: Forty to 50 percent of those people don't pay taxes. That means he's going to send them a welfare check. He's going to send them money. He's not reducing taxes.

COLMES: Well, but they do.

GIULIANI: He's giving them — he's giving them a transfer payment.

COLMES: They pay payroll taxes.

GIULIANI: He's doing exactly what he told Joe the Plumber. Well, then he's changing our Social Security system from an insurance system to a welfare system.

COLMES: How is.

(CROSSTALK)

COLMES: How is that different than John McCain giving $5,000 to everybody for health care? Isn't that a handout? And where's John McCain going to get the money.

GIULIANI: No. No.

COLMES: . to give anybody $5,000 to put for health care?

GIULIANI: He's not going to give — he's not going to give anybody $5,000, that is totally misrepresenting his program, as you say we do. The reality is he's going to give you a tax credit for $5,000. We get tax credits for all kinds of things. That's not a handout.

COLMES: Isn't that a handout? Of course (INAUDIBLE) come from.

GIULIANI: It's a deduction, it's a deduction.

HANNITY: The tax cut.

GIULIANI: . from the income that you earned. It's a tax credit like you get a tax credit for tuition, like you get a tax credit for other things.

COLMES: That is redistribution of wealth.

GIULIANI: What Barack Obama wants to do — what Barack Obama wants to do is to aggressively send money to a large group of people who aren't getting money right now, and he's going to take it from another group of people.

COLMES: Mr. Mayor.

GIULIANI: The difference between progressive taxation and what Barack Obama wants to do is he directly wants to use our tax system to redistribute wealth.

COLMES: He's going to the same plan that Clinton had.

GIULIANI: It has never been done before by any one.

COLMES: When we buy banks and we buy companies and save AIG and buy out mortgages, which is what McCain wants to do, isn't that redistribution of wealth? Isn't that socialism?

GIULIANI: No, no, it's not sending — it's not sending money directly from one group to another group.

COLMES: I see. All right.

GIULIANI: It is — it's a measure that is designed for a temporary period of time. This is a permanent redistribution of income.

Barack Obama has been in favor of this from the time he was a student. He's been talking about redistributive justice, he's been talking about.

COLMES: For education.

GIULIANI: . these kinds of program from the time he was a student.

COLMES: All right, Mr. Mayor, we thank you very much for coming on the show as always.

GIULIANI: Thank you. Thank you.

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