Full Transcript: Charlie Gibson Interviews GOP Vice Presidential Candidate Sarah Palin

GIBSON: You mentioned in the three principles that you'll change spending. You also talked about taxes. Why do you both keep saying that Obama is going to raise people's taxes? It's been pretty clear what he intends. He's talked about middle-class tax cuts, extending Bush tax cuts on everything but people who own or burn more than $250,000 a year -- cuts taxes on over 91 percent of the country. Why do you keep saying he's going to raise people's taxes?

PALIN: Well, I would argue with the whole premise of that, that his mission is to not increase taxes. He's had 94 opportunities to either vote for a tax cut or not support tax increases. And 94 times, he's been on the other side of what I believe the majority of Americans want. And that is a reduction in taxes -- allowing Americans to keep more of what they earn, allowing them to invest for their priorities, for their families' priorities.

And I'll bet you Americans' priorities are going to be education for their kids, putting a nest egg aside, getting a piece of the rock, buying a home and property. That is the American ideal. And I believe that Barack's actions, those 94 times, are an aside, are going in the opposite direction of what our country needs.

GIBSON: His tax plan basically modeled on the Bill Clinton tax plans. And...

(CROSSTALK)

SARAH PALIN: Well, I wasn't a fan of the Bill Clinton tax plan either.

GIBSON: In Clinton's -- in Clinton's eight years, we created 22 million new jobs in this country; under Bush, 5 million. And that number's shrinking.

PALIN: We need to create more jobs. There again, though, it's got to be the private sector creating those jobs. Federal government, state government, local government, we need to provide the infrastructure tools, those things that individuals and small businesses can't do individually, but as a whole, government can do. Roads, water, sewer, education, public safety -- those basics. Few basics, and we do those few things very, very good.

GIBSON: One of John McCain's central campaign targets, tenets of his campaign, is eliminating earmarks, getting rid of them. Are you with John McCain on that?

PALIN: I certainly am. And of course the poster child for the earmarks was Alaska's, what people in the lower 48 refer to as, the bridge to nowhere.

PALIN: First it was a bridge to community with an airport in southeast Alaska. But that was excessive. And an earmark -- an earmark like that, not even supported necessarily by the majority of Alaskans. We killed that earmark. We killed that project. And, as I've said over and over, if Alaska wants that bridge, $300 million, $400 million, over to that island with an airport, we'll find a way to build it ourselves. The rest of the country doesn't have to build that for us.

GIBSON: Well, I think you just said that you agree with John McCain, that we ought to eliminate all earmarks. Correct?

PALIN: I don't think he's ever said every single earmark.

GIBSON: He said...

PALIN: He has said the pork barrel, overstuffed earmark bill that comes in front of him, he'll veto. And I absolutely support him on that. What has to stop, Charlie, the reform in this arena that has to take place, is the abuse of the earmark process. And Alaska here too, unfortunately, has been made famous by the abuses there. Those 11th hour, behind-closed-doors, secret bills struck to put an earmark in the federal budget without public scrutiny, unacceptable.

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