The president has called the idea of "death panels" a "lie, plain and simple." When asked by Walters if it was Obama who was lying, Palin replied: "He is not lying, in that those two words will not be found in any of those thousands of pages of different variations of the health care bill. No, death panel isn't there. But he's incorrect, and he is disingenuous, if he is telling the American public that it doesn't come down to people -- committees, bureaucrats -- deciding who, ultimately, will receive government-run health care, if that's where we end up. With government-run health care, the only way to provide all the services to those who will need this health care is to ration it at some point. Who will do the rationing? It will be bureaucrats."
Palin also took aim at the Obama administration's stance on Israeli settlements in the Palestinian territories.
"I disagree with the Obama administration on that," Palin told Walters. "I believe that the Jewish settlements should be allowed to be expanded upon, because that population of Israel is going to grow.
"More and more Jewish people will be flocking to Israel in the days and weeks and months ahead. And I don't think that the Obama administration has any right to tell Israel that the Jewish settlements cannot expand."
As for another hot-button issue -- Afghanistan -- where 68,000 U.S. troops are deployed, Palin said the president should follow the advice of Gen. Stanley McChrystal, "to listen to McChrystal, to listen to the appointee that President Obama asked for. ... "McChrystal gave the president the advice and said, 'We need essentially a surge strategy in Afghanistan, so that we can win in Afghanistan. And that means more resources, more troops there.' It frustrates me and frightens me -- and many Americans -- that President Obama is dithering around with the decision in Afghanistan," she said.
The most ambitious strategy, from McChrystal, would send 40,000 more troops. Obama pushed the generals to elaborate on how and when the exchange of responsibility could take place from U.S. troops to the Afghans, according to ABC News' Jake Tapper.
Although the two don't have much in common in terms of policy, Palin said the ultimate goal for the United States in Afghanistan should be to turn responsibility over to the Afghan government and people.
"The people there, the government there, should be able to take over and to have a more peaceful existence there for the people who live there -- without American interference, if you will," she said.
To address the highest unemployment levels since 1983, Palin said she would cut taxes.
"I would start cutting taxes and allowing our small businesses to keep more of what they are earning, more of what they are producing, more of what they own and earn so that they could start reinvesting in their businesses and expand and hire more people -- not punishing them by forcing health care reform down their throats; by forcing an energy policy down their throats that ultimately will tax them more and cost them more to stay in business. Those are 'backassward' ways of trying to fix the economy," she told Walters.
"You do have a way with words," Walters replied.
"I call it like I see it," she said.