Donald Trump on Raising Taxes; Future of America's Economy

This is a rush transcript from "Your World With Neil Cavuto," July 15, 2009. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: Well, stocks soar, and a shuttle a little more than two hours from now hoping to do the same.

Welcome, everybody. I am Neil Cavuto.

Out of this world, not what space shuttle Endeavour hope to do tonight. I'm talking about what Wall Street did just now, the Dow rocketing ahead more than 258 points. Make that nearly 500 points this week, and all because earnings are looking good.

And, in the case of big names, like Intel, and Goldman Sachs, Johnson & Johnson, they are looking really good, so good, it has some thinking this so-so economy talk is so wrong, and spending more federal dough to goose it is so really wrong.

Are we wrong on that?

Video: Watch Neil's interview with Donald Trump

On the phone right now, billionaire Donald Trump.

Donald, good to have you.

What do you make of this? Is — are we doing better than thought?

DONALD TRUMP, CHAIRMAN & CEO, TRUMP HOTELS & CASINO RESORTS: Well, I think it is starting to come back, finally, Neil. The world is looking better. The country is looking better. And I think people are starting to get a little confidence.

CAVUTO: But we are opening the federal spending spigot more to address an economy that is deemed in Washington to be giving us less. Are we jumping the gun here?

TRUMP: Well, you initially had to do it. They filled up the banks. They loaded up the banks, or we would have had a problem like we have never before, other than maybe in 1929.

But they did the right thing by doing that. And I really see it myself. I see people are having a lot more confidence in the economy, where they are going to be. All of a sudden, you will see housing prices going up. There are a lot of good things happening, Neil.


Donald, as I'm talking to you, we are getting word now that President Obama has been briefed on the CIT financial situation — that is sort of the mid-sized business lender that is in a whole heap of financial trouble right now — that a bailout or a rescue might be in the offing.

Should one be?

TRUMP: Well, it would depend on the individual situation. It has always been known as an OK company, an OK lender. They have bailed out so many others. And they actually have made quite a bit of money in bailing out, other than, of course, AIG. I don't see how they're going to get that money back...

CAVUTO: Right.

TRUMP: ... at $180 billion. That one, perhaps, was not the right one to do.

But I would say that there is a possibility they are going to do it. And, frankly, if they could make a good deal, I would do it.


Let's talk a little bit about what is happening on Wall Street and split it with the view of Main Street. If these companies are right in saying that they see a turnaround, that things are improving, and now we add into the mix a trillion-dollar health care package that could substantially raise taxes on the rich, many of whom may not consider themselves rich, but wealthier folks, what would be the fallout, do you think?

TRUMP: Well, I think raising taxes on the people that are really producing a lot of the jobs in this country at this time — it's a very fragile time — I think it's a very dangerous thing to do, and I am not in a minority on that.

Raising taxes right now for the people that put out the work are really — that is a very dangerous thing to do. This is a very, very delicate economy. It is starting to come back. We are starting to see good news. We are starting to see confidence, maybe most importantly, but raising taxes is a very dangerous thing to do, Neil.

CAVUTO: You know, the argument has always been, Donald, as you and I have discussed before — and the administration states this — we're going to talk to a prominent Democrat who echoes this — that who better to go after than the folks who have it, the wealthy, the Trumps of the world and on down, that — that it's — it's sort of open season on rich folks.

Should it be?

TRUMP: Well, I think once you tax — I don't think it is. And I don't think people want that. And a lot of people aspire to be rich, and they don't want to be taxed to — into oblivion once they become — you know, I'm seeing it more and more.

The fact is that you just — it is just too fragile a time. And these are the businesses. You are not talking about necessarily — you're talking about businesses and job creation. Once you take away that incentive, all of a sudden, you are going to see an economy that goes south.

CAVUTO: Do you feel, as a very rich guy in your own right, almost embarrassed to be rich?

TRUMP: You can never be embarrassed.

And don't forget I and others — and some others, not all others — give a lot of money away each year to charity. And I am very proud to do it. I employ thousands and thousands of people and create jobs for lots of people.

So, you know, you have to be proud of that, Neil. You can't be embarrassed by it. There is something really nice about watching your show and others that talk about business and enjoy it, but, you know, thousands of people are employed by me, as an example. And — and I am very proud of that.

CAVUTO: Donald Trump, it's always a pleasure.

Thank you very, very much.

TRUMP: Have a good time, Neil. Thank you.

CAVUTO: Donald Trump.

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