This is a rush transcript from "Your World With Neil Cavuto," November 4, 2008. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: Now, if Barack Obama does win tonight, who gets a tax break? We're still not exactly sure. Here to help clear it up, New Mexico Governor Bill Richardson, who might have hinted at maybe that income threshold should be a little lower.

Whatever happened there, Governor? What was it? You said, I think, $120,000, right?

GOV. BILL RICHARDSON (D), NEW MEXICO: Well, I wasn't clear, and I admit it.

Video: Watch Neil's interview with New Mexico Governor Bill Richardson


RICHARDSON: I wasn't clear.

But the point is that under Senator Obama's tax cut plan, nobody making under $250,000 will get a tax increase. And 95 percent of America's working families get a tax cut.

CAVUTO: But where did you come up with...

RICHARDSON: Like, as you know, I have been...

CAVUTO: ... where did you come up with the $120,000?

RICHARDSON: Well, it was a discussion about what constitutes middle class.

CAVUTO: Right.

RICHARDSON: But I was unclear. So, I was called upon to basically say, this is an incorrect figure. And I...


CAVUTO: You see the reason why, Governor — and I know you didn't mean anything sinister by it and all. But people immediately jumped on that and said, Well, wait a minute. We know last year at this time — and I covered him last year at this time — Barack Obama was saying you were rich if you earned $1 million.

Right before the Iowa caucuses, he had brought that down to $500,000. Now we have the $250,000 thing that was $200,000. Maybe it was, you know, $150,000 — from Joe Biden.

And I heard you say under $120,000. I'm all of a sudden saying, at the rate we're going, it's $15,000. I don't know. But, you know, you can't stop people from thinking that, right?

RICHARDSON: Well, but the reality is that Obama is the tax cutter in this race. More taxes are cut, capital gains for business, for merging companies...

CAVUTO: Well, capital gains is going up.

RICHARDSON: ... and for individuals under Senator Obama.

CAVUTO: Capital gains is going up. It's going to go from 15 percent to 20 percent under his administration.

RICHARDSON: No, no. But — under Senator Obama's plan, if you're a start-up, an entrepreneur, you get no capital gains tax. You know, just like I did in New Mexico. We cut it in half...

CAVUTO: Yes, but most investors — most investors, you know, who fit into the vast majority of those who pay capital gains are looking at a higher tax, right? Those in the upper income bracket...

RICHARDSON: No, not necessarily.

CAVUTO: ... which is the lifeblood of Wall Street, they're looking at a higher marginal tax, right?

RICHARDSON: I think what has happened in this race, Neil, is that Senator Obama's taken the tax cut mantle away from Senator McCain and the Republicans. And, you know, there's all this discontent over that.

But the reality is...

CAVUTO: All right, well, Governor, I want to ask you. You're a great student of political history. Bill Clinton had a middle class tax cut too in 1992. Days after he was elected, he shelved it. Now, will this, if it were to pass, a President-elect Obama do the same thing?

RICHARDSON: No. No. Senator Obama has said that as president he'll push for energy independence, the middle class tax cut, a jobs program, infrastructure; put a lot of people to work...

CAVUTO: I know what he said.

RICHARDSON: ... more oversight...

CAVUTO: But do you think he'll look at those deficits, as Bill Clinton did in '92, and say no?

RICHARDSON: No, I think he's very determined. He's been very clear...

CAVUTO: All right.

RICHARDSON: ... that he's going to proceed with his economic agenda. And this is why I think he's gaining so much support...


RICHARDSON: ... that he's willing to deal with the economic issues.

CAVUTO: Real quickly. Folks say I'm looking at the next secretary of state if he becomes president — to you. Is that true?


RICHARDSON: Listen, I'm happy as governor of New Mexico. I just want to carry New Mexico.

And by the way, I haven't predicted any landslides. I heard you earlier.

CAVUTO: Oh, I thought you did.

RICHARDSON: I think that Senator Obama is going to do very well in states like New Mexico, Colorado, Nevada. Large Hispanic vote. Rocky Mountain West going to Democrats.

But I think it's going to be a close race.

CAVUTO: Is Bill Clinton talking to you?

RICHARDSON: Not lately.


RICHARDSON: But Senator Clinton has.

CAVUTO: Right.

RICHARDSON: We have — we have kind of patched it up. But, no, he hasn't called.


CAVUTO: All right. Let me know when he does. That's a FOX News Alert, when that happens.

Governor, always a pleasure. Thank you very much.

RICHARDSON: Thank you, Neil.


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