Giuliani Laces Into Clinton Over 'Staggering' Tax Hike

BURLINGAME, Calif. — Mayor Giuliani is labeling Senator Clinton's plan to reverse President Bush's tax cuts "an astounding, staggering tax increase" that would turn back the clock and damage America's economy.

In a potential preview of next fall's presidential contest, Mr. Giuliani, who is seen as the front-runner for the Republican nomination, directly attacked the leading Democratic candidate, Mrs. Clinton, over a speech she gave Tuesday in New Hampshire bemoaning the return of "robber barons" and promising to pursue "shared prosperity" by increasing taxes on Americans making more than $200,000 a year.

"This would be an astounding, staggering tax increase," Mr. Giuliani told reporters yesterday after a visit to a restaurant on the edge of California's Silicon Valley. "She wants to go back to the 1990s. … It would hurt our economy. It would hurt this area dramatically. That kind of tax increase would see a decline in your venture capital. It would see a decline in your ability to focus on new technology."

Mr. Giuliani clearly relished the chance to engage with Mrs. Clinton on the tax issue. He was even armed with some research about her past statements on the subject. "Mrs. Clinton, when she was in San Francisco a few years ago, was quoted as saying about the tax cuts, ‘We're going to have to take more from you to give it to the common good,'" he said. "My philosophy is to give you a little more back for the common good."

Lest his point be lost, the former mayor also painted himself as an unabashed devotee of supply-side economics. "The way I paid for preparing the New York City budget was by lowering taxes. I was collecting billions of dollars more from the lower taxes than from the higher taxes," Mr. Giuliani said. "You can make money by lowering taxes."

A spokesman for Mrs. Clinton, Howard Wolfson, had no comment on Mr. Giuliani's salvo. In her speech, Mrs. Clinton said the tax hikes would help balance the federal budget. She has also said the increased revenues could help provide health care to uninsured Americans.

Mr. Giuliani's four-minute broadside against Mrs. Clinton came in response to a question from The New York Sun about his views on a statement by a former House speaker and potential Republican presidential candidate, Newt Gingrich, that GOP hopefuls will have to be critical of Mr. Bush in order to win the White House in 2008. "I think the way a Republican should run is toward the future. I think the Republicans should run for ‘What are we going to do in 2009, 2010, 2011?'" Mr. Giuliani said. "That'd be a very salutary thing for the American people. I think they would really like that if you talked about the future."

Mr. Giuliani also went after another Democratic contender, Senator Obama of Illinois, attacking the health care plan he rolled out this week as "socialized medicine" that would also require tax hikes.

A spokesman for Mr. Obama, Bill Burton, called Mr. Giuliani a "cynic" who was returning to a tired political tactic. "Comments with that familiar Washington ring have created just the kind of atmosphere preventing Congress from moving forward to offer affordable health care to all Americans," the spokesman said.

In Silicon Valley, Mr. Giuliani's mantra that Mrs. Clinton would return America to the 1990s might not produce the horrified reaction he seemed to be seeking. That era was the heyday for many high technology firms, at least until the Internet bubble burst in 2000.

On the other hand, for some listeners the former mayor's references to that time could conjure up the saga of President Clinton's impeachment and other ethical imbroglios.

Mr. Giuliani said yesterday that he hoped the campaign would focus on policy, and not "personal issues."

The former mayor also held a fund-raiser yesterday afternoon. Organizers said 200 people were to attend, paying $250 or more apiece.
The event was closed to the press, but one attendee, Patrick Shannon of Sacramento, Calif., said afterward that Mr. Giuliani displayed an impressive understanding of economic issues.

"Everybody knows he's a law enforcement figure. But people aren't as familiar with his record on meat and potatoes issues," Mr. Shannon said. "He made a good case today."

Mr. Shannon, who is a lobbyist and attorney, said Mr. Giuliani promised a concerted effort to prevent the Iranians from getting nuclear weapons, but he offered no specifics. "I'd like to know how," the donor said.

Mrs. Clinton was also scheduled to be fund-raising in California last night. She was scheduled to attend a fund-raiser in Beverly Hills co-hosted by a slew of A-list performers, including Christina Aguilera, Penelope Cruz, Mike Myers, and Jeremy Piven.