RUDY GIULIANI (former New York City mayor): The original stimulus package was supposed to be an infrastructure package: 5 percent --
GRETCHEN CARLSON (co-host): Shovel-ready jobs.
GIULIANI: -- 5 percent for infrastructure, 95 percent for social programs that are debatable -- might help people, might not -- but this is not the time to be doing it, when -- it's like when your business is going down, you don't spend twice as much more money, you try to save money.
CARLSON: But I find what's fascinating this morning -- you asked where's the money going to come from? Now a report out this morning that maybe they're going to rethink taxing people again in all of this. So if they were going to raise $318 billion in 10 years by raising the income tax to 40 percent, they're not going to potentially get that money now. So, how are they going to pay for those programs?
GIULIANI: Well, I think what they're -- I think what they're focusing on is just the reality. This is not a Republican or Democratic reality. This is a reality John Kennedy understood. If they raise taxes, they're going to end up with less revenues for the government, because you're going to see people taking their money out of the United States, sheltering their money, not making as much money --
KILMEADE: It goes into metals.
GIULIANI: Absolutely right. You've got to stimulate the economy for this to work.
KILMEADE: And they might actually get rid of the -- getting rid of the deduction for charitable donations. They might rethink that, because charities will be decimated.
GIULIANI: Well, yeah. I mean, the idea that tax increases stimulate an economy is just dead wrong.