DP: Let's go to U.S. domestic issues. Your take on such issues at tax cuts?

RG: I'm a very big supporter of tax cuts. Not only am I a supporter, I did it. I mean, I'm sort of somebody who learned by...I worked for Ronald Reagan. I thought that both Ronald Reagan, and before him, President Kennedy, and now President Bush, have kind of proven that tax cuts stimulate an economy. When I became Mayor of New York City, I started to fight very hard for tax cuts in New York City. New York City had really never done tax cuts before. We were sort of a very typical liberal Democratic model of tax in order to solve your budget deficit. And then, you'd very quickly make your budget deficit worse, because businesses would leave. So I began a program of tax reduction. Eventually, I reduced 23 taxes, eliminated some, reduced taxes by $3-4 billion, and I was collecting a lot more money from the lower taxes than I was from the higher ones.

I tried to calculate as best I could, reducing the taxes that I thought would have the biggest effect. In other words, those that would stimulate business, the hotel occupancy tax, sales taxes, income taxes, the things that would create more jobs. And it worked. I mean, I can cite chapter and verse on reducing a tax, two years later, collecting more money from the lower taxes than we collected from the higher tax. So I am a very, very big believer that in a complex, private economy, mixed private/government economy like we have, the more money you can put back sensibly into the private economy, the more it's ultimately going to grow.

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