SEAN HANNITY, HOST OF “HANNITY”: While former New York City Mayor Rudy Giuliani insists he's still not made up his mind about entering the presidential race. Well he did just pay a visit to the -- state in New Hampshire, a destination that tends to raise more than a few eyebrows At this point in a political season. So, I sat down with the former mayor to get answers about 2012 and his intentions. Plus, his thoughts on the great debt debate. Let's take a look.

HANNITY: Mr. Mayor, how are you? Good to see you.

RUDY GUILIANI, FORMER NEW YORK CITY MAYOR: I'm very good, Sean. How are you?

HANNITY: Mayor Giuliani. All right. I got to get this out of way. Because I know, we are going to talk finances here. A lot of rumors, you are really making -- thinking about making a run. Where are you with this?

GUILIANI: Well, I was in New Hampshire last week, a couple days. I got a lot of advice.

HANNITY: That’s always suspicious.

GIULIANI: I got a lot of advice about New Hampshire which I think I understand. I got to think about the rest of the country. What kind of chance do I really have? How are the candidates doing? Is anybody really looks like they can win? My objective is we cannot have President Obama after next year. This has been -- I mean, look at what he’s put us through with this whole debt thing. I mean, this is because the president doesn't lead. I mean, Republicans, Democrats, fighting with each other in the House. The president has never outlined how he would do. This is outrageous.

HANNITY: No plan.

GUILIANI: This would be like, if I were the mayor of New York, if I said I'm not going to do a budget, I'll let the city council.

HANNITY: Over 800 days in the Senate.

He's done everything this way. He did health care this way. The reason health care turned out to be such a mess is he never had a health care plan. He waited for what the people in the House said, people in the Senate. Now he's working with Democrats, Republicans. Probably, two sides against the middle. Nobody knows what the heck he's doing.

HANNITY: He's not put down on paper what his plan is.

GUILIANI: That's the single biggest outrage here. If we default, and I hope we don't. But if we default, 90 percent of the responsibility is on the president of the United States. Not on even the Democrats in the House, or the Republicans in the House. It's on him. He's the leader of this country. He's the chief executive of the country. And he's yet to outline a plan because he's too darn afraid that he's going to pay political, and he's pretending he wants to do all this big cuts. We know he doesn't want to do cuts, at least to be honest about it. He wants the minimum number of cuts and maximum amount of tax increases and then we should battle out that whole thing.

HANNITY: You know, but the interesting thing to me is, you took over New York City at a time where it was really a mess. And you -- you were in the middle of one war after another.

GUILIANI: Yes. I'm always outlining my plan from day one. Day after I got elected, I sat down very quickly, selected a head of OMB and we mapped out a plan, a strategy. It wasn't the greatest in the world, but it worked. And I was willing, you know, to compromise. But it was my plan we were compromising off. I learned that from Ronald Reagan. I worked for Ronald Reagan, day one he had a strategy, he had to compromise a little here and there. Ronald Reagan was great at saying, if he can get 80 percent he won. But it was always his plan. He was leading. He was saying, these are the tax cuts we need, these are the reductions in spending we need, we got to do a 10 percent across the board cut. Then you fight about it.

But it's the president of the United States who does the leading. And the reason we have a president that can't do it, is you’ve made this point over and over. But just think about this. He's never done a budget before. We take a guy who’s never done a budget who gives the biggest budget in the world to run. Of course, he's going to screw it up. He's never had executive responsibility. And now, he's dealing with one of the most complex problems. This whole debt problem. This enormously complex problem. He's got two rigid groups on either side, right? We've got a Republicans who say, no tax increases, maximum reductions. But the Democrats, who say, increase taxes to 80 percent if they can get their way.

HANNITY: But here's the, you see, I think the Republican plan, number one, the president even said, you don't raise taxes during recession or an economic slowdown. We're still in an economic slowdown. And it seems like you're right, the Democrats want to raise taxes. You know, you mentioned Reagan. Reagan dropped the top marginal rates to -- 28 percent. You lowered taxes as mayor.

GUILIANI: Which is what should happen here.

HANNITY: OK. So, the president is just inflexible. He won't move on this.


HANNITY: So, the Republicans have passed now two bills in the House. They've done their job.


HANNITY: They've done what they were hired to do.

GUILIANI: It’s time for him to put up something.


GUILIANI: Put up something. But unfortunately, you know, I thought the whole plan of the ‘Gang of Six,’ although it had some good elements to it. I liked the tax reform, I like reducing the marginal rates. One of the things that I like about it, is it recognizes a trillion dollars from tax reduction. It recognizes a trillion dollars in additional revenue. It's very, very hard getting any of these government agencies to ever recognize that. On the other hand, it net raises taxes which is a terrible mistake and would be a terrible drain on our economy. And the thing I don't like about it is we should not be introducing raising taxes when we have a president who’s already said, well, this is not the time to do it.

HANNITY: I've been bringing up the last couple of days, my anger at the Republicans. I think frankly, their negotiating tactics have been lame. Because here you had on the day ‘Cut, Cap and Balance,’ which I think is a very solid plan to deal with problems.

GUILIANI: Short term and long term, it's actually the only way out of it.

HANNITY: The only way out of it. OK. So, you agree with me and you agree with the House. But on that same day, then all of a sudden, the president gets to steal the thunder and walk into the press room and say, no, we've got another plan so now the country doesn't even focus on -- but the Republicans did this, they gave the president that opening. Why would they compete against themselves?

GUILIANI: This is the problem when you don't have the White House, you don't have leadership. Like they don't have leadership, we don't. We have a House of Representatives, one set of leaders. We have a Senate where everybody’s the leader. I mean, the Senate is, you know, 10 leaders, 15 leaders, 20 leaders. And no, they don't agree. You listen to them, they obviously, they have different viewpoints about how to do it.

HANNITY: Yes. Well, it seems that if the president has no plan and then, we've got three Republican plans.

GUILIANI: Then we’re negotiating against ourselves.

HANNITY: That's ridiculous.

GUILIANI: Which is a terrible mistake. And I think I know the result here. The result is they’re going to kick this thing down the road.

HANNITY: They're going to.

GUILIANI: Yes. Yes. I mean, this is a terrible mistake. I mean, we shouldn't default. But we also can't have this deficit. Both are equally crippling. It's hard to say which is worse. You got to deal with both if you want to straighten out our economy.

HANNITY: All right. Now, back to you and running for president -- question, really good. You went right into to the economics and everything. So, you went to New Hampshire. And where are you now? I mean, you’re assessing the situation.

GIULIANI: I'm not leaning, I'm thinking. I listen to a lot of people. Listen to their advice. Some think it’s a good idea to run, some think it isn't. So you listen, you try to assess the whole thing.

And you also try to figure out; can you win some primaries after New Hampshire? I don't want to do this just to run. I want to do it only because I think I have the best chance of winning.

If I think somebody else has a better chance, I don't want to spoil their chances. It’s too important that we replace Obama.

HANNITY: When do you think you need to decide by?

GIULIANI: You got to decide by, you know, the end of the summer --

HANNITY: The end of August?

GIULIANI: End of September, August, September, something like that.

HANNITY: Last question, is there any one person you see in the field now or any --

GIULIANI: I like a lot of them. I'm going to keep that to myself until I decide what I'm going to do. The last time I did it with John McCain. I announced during a debate if I wasn't running I would be supporting John McCain. My staff got real angry.

HANNITY: Mr. Mayor, good to see you. Thanks for being with us.

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