GOP Hopefuls Talk Tax Cuts At S.C. Debate

Gathering Comes Ahead Of Crucial Palmetto State Contest On Jan. 19

(CBS/AP)  Republican presidential rivals backed a blend of tax and spending cuts Thursday night to head off an election-year recession they generally agreed is avoidable.

"We should reduce taxes on middle-income Americans immediately," former Massachusetts Gov. Mitt Romney said in a debate in the run-up to presidential primaries in Michigan and South Carolina, two states where unemployment exceeds the national average.

"The first thing is not to raise taxes," said former Arkansas Gov. Mike Huckabee. "Cut the marginal tax rate, if anything, and eventually go to a fair tax," he added, referring to his plan for a national sales tax to replace the income tax.

Arizona Sen. John McCain stressed spending cuts to get the budget deficit under control, although he also said it was important not to let Bush administration-era tax cuts expire. He pledged to "wield the veto pen" and block all pork barrel spending bills that Congress sends him.

While the debate was held in South Carolina, the Michigan primary is next on the campaign calendar, a contest in which Romney, Huckabee and McCain are the principal antagonists. It's unlikely all of them can survive a defeat there, particularly a third-place finish.

South Carolina's primary is scheduled for Jan. 19, and drawn a different group of competitors. Former Sen. Fred Thompson of Tennessee has made it clear he needs a victory or something close to it, while McCain and Huckabee also are counting on a strong showing. Romney abruptly canceled television advertising in the state earlier this week, and is concentrating for the moment on Michigan.

Thompson underscored the urgency of a strong South Carolina showing when he launched an attack on Huckabee, standing a few feet away on the debate stage.

"This is a battle for the heart and soul of the Republican Party and its future. On the one hand you have the Reagan Revolution ... on the other hand you have the direction that Governor Huckabee would take us ... liberal economic policies, liberal foreign policies," he said.

Huckabee seemed unruffled. "The Air Force has a saying that if you're not catching flak you're not over the target. I'm catching the flak. I must be over the target," he said. He added he had cut taxes as governor of Arkansas and was re-elected by his constituents, a sure sign, he added, that they were pleased with his performance.

"Tonight's debate was like watching a movie within a movie within a movie with several subplots happening simultaneously," said CBSNews.com Senior Political Editor Vaughn Ververs. "You had Mitt Romney hitting John McCain on the economy as the two battle it out for next week's Michigan primary. Fred Thompson, needing a victory among conservatives in South Carolina unloaded on Mike Huckabee with a litany of charges. Rudy Giuliani, who is sitting out the early contests, paid homage to Ronald Reagan's 50-state general election strategy and Ron Paul was everyone's national security foil." (Read more of Ververs' analysis of the debate)

In a 90-minute debate that ranged over economic issues, foreign policy and immigration, Huckabee drew the loudest applause of the night from the audience when he was asked about having quoted a Biblical passage saying a wife "has to submit herself graciously" to her husband.

A Baptist preacher before entering politics, he said he was "not the least bit ashamed of my faith," but didn't impose it as governor and wouldn't as president. He said the citation is from Ephesians, and "the point is that as wives submit themselves to their husbands the husbands also submit themselves" to their wives.

"That's why marriage is an important institution, because it teaches us how to love," he concluded.

The debate was sponsored by the South Carolina Republican Party and Fox News Channel, and opened with a country music touch - a rousing rendition of The Star-Spangled Banner by Calvin Gilmore.

Asked about last weekend's Persian Gulf incident in which Iranian speed boats harassed U.S. warships, none of the presidential rivals found fault with U.S. naval commanders on the scene.

But several took the opportunity to stress their determination to take stronger steps against Iran in the future.

"I think one more step, you know, and they would have been introduced to those virgins that they're looking forward to seeing," said Thompson.

Huckabee said if it happened again, the Iranians "should be prepared to see the gates of Hell."

McCain, the only candidate with experience in the Navy, refused to second guess the actions of the commander of all the battle groups.

"I believe Iran represents a very serious threat," said Romney. He added he believes the incident was a calculated one to test U.S. defensive responses and was a "diversionary action ... It points out that we have in Iran a very troubled nation," he added.

Romney drew mixed boos and applause from the audience when he criticized Paul, a Republican congressman from Texas, for saying the United States must avoid another war.

Romney said Paul had been reading "too many press releases by (Mahmoud) Ahmadinejad" the Iranian president.

"Make fun buddy," muttered a clearly irritated Paul.

The economy dominated the first portion of the debate, reflecting increased concern that a recession may be in the offing. Ben Bernanke, chairman of the Federal Reserve, issued an unusually plainspoken pledge during the day to do what he could to keep the economy expanding despite a threat posed by a mortgage crisis and other factors.

Unemployment rose to 5 percent last month after the biggest one-month gain since 2001. In South Carolina, it was 5.9 percent in November; in Michigan, it was 7.4 percent.

Thompson, who advocates a cut in corporate taxes, also said "we need to count on the Federal Reserve doing the right thing on interest rates" to keep the economy from tumbling into recession. He also said tax cuts enacted in recent years should be extended.

Former New York Mayor Rudy Giuliani, who is not making a strong effort in either Michigan or South Carolina, also advocated tax cuts, and his campaign purchased an advertisement during the first commercial break that said he would send the largest tax cut in history to Congress on his first day in the White House.

Alone of the six presidential rivals on the debate stage, Paul said, "I believe we are in a recession. I believe it's going to get a lot worse."

The first three contests of the Republican campaign have yielded three different winners: Huckabee, first in the leadoff Iowa caucuses; Romney, victor in the little-contested Wyoming caucuses, and McCain, triumphant in last Tuesday's fiercely fought New Hampshire primary.

The debate unfolded as one poll showed McCain getting a bounce from his New Hampshire triumph and moving narrowly ahead of Huckabee and Romney in South Carolina.

[lgander]

Hucksterbee?? I thought name calling was something the demoncrats did. I know Mike. He''s not the bad person you claim AND he''d make an EXCELLENT President.

[prinzowhales]

Hucksterbee and Romney, next to Giuliani and McCain, are the worst of the lot...

Hucksterbee stands for illegal immigration and war. He tried to steal $70,000 worth of furniture from the Executive Mansion in Little Rock...he is a covetous little b*stard...

[lgander]

There''s a lot of hate in you veteran71. Try a little love. This world needs more of it.

[lgander]

http://www.youtube.com/watch?v=TBfPb_cftFk

[lgander]

Funny! (30 seconds)

http://www.youtube.com/watch?v=TBfPb_cftFk

[lgander]

I''m sorry. I forgot to mention the al-qaeda TERRORISTS we''re fighting there. It''s VERY legal.

[lgander]

It''s not an illegal war. It was VERY legal. Saddam killed thousands of innocent women and children and snubbed his nose at the UN 19 times. The UN is worthless - they didn''t care about Darfur either - only for stealing tax dollars from the oil for food program. The UN needs to be abolished. So does the IRS.

AND the hate needs to end. Your''s too.

[im4honesty]

What a great idea!!!!

MORE TAX CUTS!!!!

These guys are idiots. We''re borrowering trillions to pay for Bush''s illegal war now.

[lgander]

The only candidate with a vast executive experience and knowledge about fiscal management WHO IS NOT BOUGHT OFF is Mike Huckabee. If the economy is the issue, Huckabee is the answer.

[lgander]

Too many people cheat on their income taxes. The IRS should be abolished. The Fair Tax would help out the little guy that can''t afford the attorney''s move their income offshore or buy someone like Romney off for more loopholes. The liberals only want to tax more. McCain is NO conservative. I like Mike. He''s real - and he''s for the common man....

[watcher269-2009]

Yep, Cut taxes for the Rich so that I can get another 33 cents more in MY paycheck. Republicans are SO OUT OF TOUCH WITH AMERICA it is PATHETIC.

[merlgrey]

While in private business, Mitt Romney utilized shell companies in two offshore tax havens to help eligible investors avoid paying U.S. taxes, federal and state records show.

Romney gained no personal tax benefit from the legal operations in Bermuda and the Cayman Islands. But aides to the Republican presidential hopeful and former colleagues acknowledged that the tax-friendly jurisdictions helped attract billions of additional investment dollars to Romney''s former company, Bain Capital, and thus boosted profits for Romney and his partners.

Romney has based his White House bid, in part, on the skills he learned as co-founder and chief of Bain Capital, one of the nation''s most successful private equity groups; his involvement with foreign tax havens had not previously come to light.

In the Cayman Islands, Romney was listed as a general partner and personally invested in BCIP Associates III Cayman, a private equity fund that is registered at a post office box on Grand Cayman Island and that indirectly buys equity in U.S. companies. The arrangement shields foreign investors from U.S. taxes they would pay for investing in U.S. companies.

Romney still retains an investment in the Cayman fund through a trust. Campaign disclosure forms show the investment paid him more than $1 million last year in dividends, interest and capital gains.

maybe mr romney can help all of us millionares with our taxes?

[johnnysnot]

Does the media dislikes Ron Paul? Well, I''m not into conspiracies but I do understand capitalism. Drug companies have become some of the biggest buyers of adverts & spend 35 Billion annually in the US on ''Direct to Consumer'' advertising, which represents half of their yearly expenses on promotions. Well, Ron Paul''s Voted YES on requiring negotiated Rx prices for Medicare part D. (Jan 07) & YES on allowing re-importation of prescription drugs. (Jul 03). Such political stances in a president could cause a dramatic reduction in profits for the big drug companies, & the advertisers they use. Drug companies as a result would drastically reduce the amount of money they could afford on advertising resulting in literally billions of dollars in lost revenue for the Mass Media. So could that have anything to do with the general disregard toward Ron Paul from the MSM? If you ran a media outlet and there was a candidate running who''s election would cost your company a fortune in revenue you wouldn''t want your employees saying anything good about that candidate either.

[almanojodo]

The only candidate with a vast business experience and knowledge about fiscal management is Mitt Romney. If the economy is the issue, Romney is the answer.

[antoniof123]

I figured it out now. The Republican answer is to cut taxes. They will cut down on government spending like health care (who needs it), education (no problem), infrastructure (roads and communication). Once we good to hel1 in a handbag and obtain 3rd world status all the illegals will return to their original homes. Hey they just solved the illegal immigration problem. God these neo cons are stupid.

[prinzowhales]

The Regime has no choice but to try to stir up more wars...to steal elections...to continue to lie about 9-11 and the reasons for the invasions of Afghanistan and Iraq. If you don''t demand and fight for free and honest elections, you will continue to have them stolen by criminal gangs associated with the Oligarchy and the banks!

[prinzowhales]

Kucinich and a Republican candidate have called for a recount in new Hampshire....

The real crime is that LSH and its narco-trafficker felon leader were ever hired by the State of New Hampshire to provide the hackable software?...who hired them?!! Who were these snivelling weasels who hired them?

Benjamin Fulford is reporting on the Alex Jones Show that the Prime Minister was grilled recently on 9-11 on nationwide TV!! He was shown pictures of the Pentagon and WTC7 and presented with all of the proofs that it was an inside job...and could not respond!! Fulford says he will have the newscast and translation up over the weekend on his website.

[prinzowhales]

Money in America is created essentially ''out of nothing'' and the power to accomplish this feat was given to private banks by the government with the Federal Reserve Act. The private banks were formerly required to back the notes they issued--the "Federal Reserve Notes'' that we use as money, erroneously called "dollars" out of habit and carelessness...a dollar represented, in the past a set amount of gold or silver established by the mint laws and the Federal Reserve Note (FRN), on its face, proclaimed that it was exchangeable for gold or silver.

The stupidity of giving this power to private bankers was hailed by ''Progressives''. Eventually the bankers decreased the reserve requirements for the insuance of debt, got their dogs in government to insure their depositors...&etc.

Now you have a paper money based on debt created by private persons who are protected by bankruptcy laws and insurance schemes...The stupid people learned nothing from the hundreds of billions lost in the S&L scams...and here we are...with the Regime pumping more funny money into the banking system...as the ''privateers'' pump money out of it in profits.

[sgtrds]

And they say history doesn''''t repeat itself. Good luck slander kings you had your fun now we have to fix your mess again. I hope we don''''t have to to every again.

Posted by antoniof123 at 10:39 AM : Jan 11, 2008

The same as the early 90''s when we had to clean up the deficit left to us by the disastrous economic polices of Reagan and the first Bush.

[chitown639]

The tax cuts are for the benefit of corporations. The ideal that the ''middle class'' receives a tax cut, is a ''bait and switch''. Americans receive tax cuts, but the funds are quickly used on higher priced basic goods and services. These prices are raised by the corporations based on the knowledge that consumers have the ''extra'' funds due to tax cuts. So instead of the funds going to the government in taxes, the funds are redirected to the corporations for their higher priced goods and services. Supporters also argue that a tax cut create jobs. Yeah, PART-TIME JOBS for Americans who have to work TWO jobs to support their families. Tax cuts are also a war of attrition against social programs, attempting to starve out these programs. But you wont know personally how much you need these programs until youre in trouble, become ill or lose your job(due to outsourcing), and/or lose your home. Tax cuts are just like the push for another war in the Middle East(Iran), it all benefits corporations like Halliburton. The country isnt better off than it was 8 years ago. Take a personal assessment of yourself and ask, ''Am I and my family better off than we were 8 years ago due to tax cuts?''