FOX "Your World" - Transcript

Interview

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MR. CAVUTO: (In progress) -- the stimulus bill that would give tax credits of up to $15,000 to anyone who buys a home in the next year. The cost of that will be about $18.5 billion. Georgia Republican Senator Johnny Isakson introduced the measure.

Senator, good to have you.

SEN. ISAKSON: Good to be with you, Neil.

MR. CAVUTO: What kind of reaction are you getting to this?

SEN. ISAKSON: Well, we're really getting a terrific reaction, not only in the Senate but around the country. Most people, a lot of people, people my age remember 1974's housing recession and remember the tax credit that passed in 1975 and remember the fact that in one year that turned around the real estate market and, in turn, the economy in the United States. We think this tax credit will do it again. Otherwise, we're going to continue to have the floor fall out from under home values and deteriorations of equity that's not going to help us at all.

MR. CAVUTO: You know, I'm just curious, though, Senator. If huge discounts in homes hasn't got them buying, if very low, historic low interest rates haven't got them buying, what's this going to do?

SEN. ISAKSON: Well, in 1975 you had precisely that. You had pretty good interest rates, certainly by the standard of those years, you had prices being cut to the bone, but people were just scared. People came out in droves to take care of monetizing taxes that would have gone to the government and using it to purchase a home that they would live in as their residence and gain that asset. So I say history is the best teacher. If it worked in 1975, I believe it will work in 2009.

MR. CAVUTO: Do you think this has the votes to be included in the package?

SEN. ISAKSON: I sincerely hope so. It had 100 percent of the votes yesterday.

MR. CAVUTO: Indeed it did. So let me ask you this then. If Republicans were faced with this stimulus bill that they by and large hate but it included your provision and that was about the biggest change made in it, your provision, would they vote for it? Would you vote for it?

SEN. ISAKSON: Probably not. I think, you know, again, I tell everybody, I have no quid pro quo agreements. I did this a year ago when people said it was too expensive, and they now realize it's a small price to pay compared to the trillions we've had to spend. But you have to get to the end product to see what it is. But there are a number of troubling expenditures that aren't stimulative in nature in this bill, that trouble a lot of people. So we've just got to wait and see how we go through the amendment process and see what the final product is. We need to do what's right for the American people.

MR. CAVUTO: Well, real quickly then, sir, is it your sense that two or three Republicans are going to vote for this but that's about the most?

SEN. ISAKSON: I haven't been counting noses, and I don't know, and I wouldn't want to start a rumor.

MR. CAVUTO: (Laughs.) Okay, Senator. Thank you very, very much. Good having you.

SEN. ISAKSON: Thank you very much.

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