Transcript: First 2012 presidential debate, part 1

ROMNEY: You bet. Well, President, you're -- Mr. President, you're absolutely right, which is that, with regards to 97 percent of the businesses are not -- not taxed at the 35 percent tax rate, they're taxed at a lower rate. But those businesses that are in the last 3 percent of businesses happen to employ half -- half of all the people who work in small business. Those are the businesses that employ one-quarter of all the workers in America. And your plan is to take their tax rate from 35 percent to 40 percent.

Now, and -- and I've talked to a guy who has a very small business. He's in the electronics business in -- in St. Louis. He has four employees. He said he and his son calculated how much they pay in taxes, federal income tax, federal payroll tax, state income tax, state sales tax, state property tax, gasoline tax. It added up to well over 50 percent of what they earned. And your plan is to take the tax rate on successful small businesses from 35 percent to 40 percent. The National Federation of Independent Businesses has said that will cost 700,000 jobs.

I don't want to cost jobs. My priority is jobs. And so what I do is I bring down the tax rates, lower deductions and exemptions, the same idea behind Bowles-Simpson, by the way, get the rates down, lower deductions and exemptions, to create more jobs, because there's nothing better for getting us to a balanced budget than having more people working, earning more money, paying more taxes. That's by far the most effective and efficient way to get this budget balanced.

OBAMA: Jim, I -- you may want to move onto another topic, but I -- I would just say this to the American people. If you believe that we can cut taxes by $5 trillion and add $2 trillion in additional spending that the military is not asking for, $7 trillion -- just to give you a sense, over 10 years, that's more than our entire defense budget -- and you think that by closing loopholes and deductions for the well-to-do, somehow you will not end up picking up the tab, then Governor Romney's plan may work for you.

But I think math, common sense, and our history shows us that's not a recipe for job growth. Look, we've tried this. We've tried both approaches. The approach that Governor Romney's talking about is the same sales pitch that was made in 2001 and 2003, and we ended up with the slowest job growth in 50 years, we ended up moving from surplus to deficits, and it all culminated in the worst financial crisis since the Great Depression.

OBAMA: Bill Clinton tried the approach that I'm talking about. We created 23 million new jobs. We went from deficit to surplus. And businesses did very well. So, in some ways, we've got some data on which approach is more likely to create jobs and opportunity for Americans and I believe that the economy works best when middle-class families are getting tax breaks so that they've got some money in their pockets, and those of us who have done extraordinarily well because of this magnificent country that we live in, that we can afford to do a little bit more to make sure we're not blowing up the deficit.

ROMNEY: Jim, the president began this segment, so I think I get the last word.

(CROSSTALK)

LEHRER: Well, you're going to get the first word in the next segment.

ROMNEY: All right. Well, but he gets the first word of that segment. I get the last word (inaudible) I hope. Let me just make this comment.

(CROSSTALK)

ROMNEY: I think first of all, let me -- let me repeat -- let me repeat what I said. I'm not in favor of a $5 trillion tax cut. That's not my plan. My plan is not to put in place any tax cut that will add to the deficit. That's point one.

So you may keep referring to it as a $5 trillion tax cut, but that's not my plan.

Number two, let's look at history. My plan is not like anything that's been tried before. My plan is to bring down rates, but also bring down deductions and exemptions and credits at the same time so the revenue stays in, but that we bring down rates to get more people working.

My priority is putting people back to work in America. They're suffering in this country. And we talk about evidence. Look at the evidence of the last four years. It's absolutely extraordinary. We've got 23 million people out of work or stopped looking for work in this country. It's just -- it's -- we've got -- when the president took office, 32 million people on food stamps; 47 million on food stamps today; economic growth this year slower than last year, and last year slower than the year before.

Going forward with the status quo is not going to cut it for the American people who are struggling today.

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4/8

Ok, this is scary- I went to look up a transcript of the debate this morning and started reading until I realized that CBS news had edited it before posting it - removing much or Romney's key opening points. It reminded me of the book 1984 by George Orwell. When you report your version of truth as fact many people beleive it. I don't care what political side you're on- if people fall for this and nobody points it out, it may be the end of civilization as we know it.

[tpaine1]

Obama has a problem defending the indefensible. The six year Obama-Pelosi-Reid Record:
*"The largest middle class tax increase in history" - the ObamaCare Tax (2008 Obama Campaign/CBO) which will cost another 1,000,000 American jobs, and another 50,000,000 their employer provided health care plans.
*The proportion of the civilian working-age population actually working, at 58%, is the smallest since the 1981 (Labor Department).
• The federal debt, at 69% of GDP, is the highest since just after WWII (CBO). Note: This does NOT include Social Security or Medicare which would put it up over 100%.
• Federal spending, now at 23.4% of GDP, is the highest since WWII (CBO).
• The national homeownership rate, now at 65.4%, is the lowest in 15 years (Census).
• The rate of new business startups — the engine of job growth — has plunged to an all-time low of 7.87% of all businesses (Census Bureau).
*The average American household spent a staggering $4,155 on gasoline during 2011 (API).
*Real median household income has declined $4,300 since Barack Obama entered the White House.
• 3 in 10 young adults can't find jobs and live with their parents, highest since the 1950s (Pew Research).
• 54% of bachelor's degree-holders under the age of 25 are jobless or underemployed, the highest share in decades (Northeastern University).
• Black teen unemployment, now at 37%, is near Depression-era highs (Labor Department).

[News_watcher88]

This transcript is missing many major paragraphs. CBS, please check the script and note that Romney's introduction is missing.

[Aimee_mb]

I have to say reading the debate, as oppossed to watching it is rather refreshing. The outcome to me is very different on print. Simply by reading it, and knowing the facts efore hand, shows a very different winner to me and that would President Obama.

[cazama]

Having not watched the debates, I would have to somewhat disagree. I think Romney was stronger when discussing taxes and deficit. His plans were a little more laid out with specifics. Obama seemed to be more vague, trying to play down Romney's ideas rather than properly present his own. Obama seemed to have the upper hand when Medicare came up, however. His healthcare policy is quite sound (though I would like to see some changes).

[taylortotsmom]

Be careful, some of what Romney has said is omitted. Can't judge until you have all the information.

[samXXkiley]

coucou,
First, what has been said in this debate is already known by the voters, having been the subject of the campaign
In other words, this debate and those that will follow are not a reference.The Americans are able to make the difference between reality and fiction, it is hoped
this debate has only served to embarrass and put pressure on the two candidates.

"au revoir"

[Armentta]

The American people are not stupid. Americans are not seeking to elect a flip- flop ACTOR, but will vote for a President who will continue to work for the American people. Romney is an amazingly actor who is comfortable with "Make Believe". He does not know what he has last said but stands by whatever he last said. If an Actor, a performance, will win over the people, shame on us. 23 million new jobs! Strong on international affairs! The President has done MORE THAN LIP SERVICE. The President has been working for the last 4 years and has moved this country forward. On Romney's first day, he will begin acting as a CEO, out-sourcing, his duties, including 3 am calls. This debate confirmed that Romney will Mislead. He will not Lead. To the fact checks, GET READY!

[Sharon_Johnson]

I read through the transcripts of this debate. I conclude that Mitt Romney is just trying to re-name policies and procedures that are already in effect. President Obama is showing that the policies that are in effect by his administration are up and running, some are beginning to show a turn around. His healthcare plan is sound. He addresses the problems that I have seen happening. Mr. Romney speaks of turning some programs back to the states, and cutting other ones. What I want to know is...what programs are going back to state level if he is elected, and exactly what programs is he going to cut? PBS Central Florida has already been acquired by the highest bidder. I think that the President was the most successful debater in this round. Mr. Romney has got to step up his game and explain where these cuts are coming from, and which programs he will return to State power. Is he really serious in allowing drilling off the coast of Florida? I know that he wants the United States to be more independent, but I don't remember seeing him down picking up and cleaning up here when all those dead birds and animals and gobs of oil washed ashore and people's livelihoods were threatened or wiped out. Our beaches and waterways were ruined. And those 'jobs'? Great ones to have, perched on oil rigs for 6 months out of the year and fighting cancer when you are old? basic jobs with little pay and no benefits? What's going to happen? The 'business world' is going to stop advertising positions that they are hiring for and actually hire for them? No Mr. Romney...I am not persuaded. I will stick with President Obama.