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Giuliani Reacts To Market Drop, McCain's Rise

(CBS)
From CBS News' Ryan Corsaro:

PALM BEACH GARDENS, FLA. -- Rudy Giuliani reacted to the worries about the U.S. economy this morning at a restaurant stop, saying he thinks cutting civilian agencies in government and the corporate tax would be ideal right now.

Giuliani said that in regards to yesterday's massive drop on Wall Street, he thinks the president should propose a "stimulus package that's heavy on permanent measures."

"I think it says the Fed has to deal with the monetary policy and the federal government has to deal with the fiscal policy," said Giuliani, who pointed to his own tax cut plan as a suggestion for staving off a recession.

"Reduce spending. Find tactical reductions that are gonna help the economy, gonna help stimulate the economy. And also take a look at moderating regulations, if there are regulations that are making us anti-competitive. A program like that, that is sustained, that is serious I think will restore the sense that economy is going to be a growing economy."

Questioned about his lack of statements contrasting himself with Republican rival John McCain, who has taken the national frontrunner role from the former mayor, Giuliani had nothing but kind words for his old friend.

"I think John McCain is carrying on very good with his campaign."

In regards to McCain's age being a factor for voters, which has been questioned by a rival campaign, Giuliani said, "I don't see that as an issue."

Yesterday, Giuliani Florida chair and state attorney general Bill McCollum said McCain was "out of touch" with Florida voters on the issue of having a National Catastrophic Relief Fund to keep insurance costs down for Floridians. The fund is a proposal Giuliani favors but McCain has not supported. Asked if Giuliani agreed with McCollum's statement, Giuliani said, "No, I agree with the assessment that I gave.

"I am the one who supports it and I think people have a right to evaluate it that way. And have a right to evaluate all these different positions. In some cases we have the same positions, in some we have different positions."

"My position on taxes is different from the other candidates. I have a record of the largest tax cut and a history in actually doing tax cuts in the past and having them work to stimulate an economy.