Posts tagged ‘Wall Street’

11/04/2012

Undecided Voters: Economic Issues

The better choice on each issue is in the left column, indicated by a (D) for Democrat, (R) for Republican, or (N) for neither.

(D) DEFICITS AND DEBT: Which party has shown an ability to end deficit spending and produce surpluses? Reagan made drastic tax cuts for the rich in 1981 and 1986, and tripled the debt. Bill Clinton’s budget in 1993 was passed by Democrats, without a single Republican vote, and it led to surpluses. Little Bush cut tax rates again, started an optional war in Iraq, and failed to request taxes for it. He just handed a great recession to Obama. While right-wing Republicans control the House, and promise to spend more on the military, they stubbornly refuse to tax for it. There’s no reason to believe they are capable of managing the debt.

(D) TAXES IN GENERAL: Which party is more likely to implement fair tax policies that may correct the deficit and debt. Romney said he would not raise taxes. (1-8-12). He stated a desire to lower them even further. (1-16-12). He said we only need taxes for the military, nothing else. (1-7-12) With these extreme positions, he would never get close to correcting deficits and debt.

(D) TAXES: CAPITAL GAINS, DIVIDENDS AND INTEREST: Which party has the better position on taxes as to capital gains, corporate dividends, and interest income? Romney repeatedly said during the Republican debates he wanted to completely eliminate taxes on capital gains, dividends, and interest (9-7-11) (9-12-11) (9-22-11) (12-10-11) (1-16-12) He later said he would limit his plan to incomes of less than $200,000. (1-23-12) In either event, it’s unfair to people who pay taxes on earned income. His policies would either raise taxes on the Middle Class, or make the deficit and debt worse. He never explained how he would make up for the lost revenues.

(D) TAXES: PAYROLL: Which party is more likely to promote tax cuts for regular workers? Romney was dismissive of Obama’s ongoing payroll tax cuts, as he called them a band-aid (12-10-11)

(D) TAXES: CORPORATE: Romney advocated lowering the highest corporate tax rate from 35% to 25%. (11-9-11). This new loss of revenue would have to be made up by the Middle Class.

(D) TAXES: RETIREES & THOSE WITH SMALL INCOMES: Although everyone pays sales taxes, gas taxes, real estate taxes (as a part of rent), as well as other excise taxes, Romney said everyone (poor, elderly, etc.) should pay income taxes. (9-7-11).

(D) TAX RETURNS AND HIDDEN WEALTH: Why didn’t Romney disclose more personal income tax returns? Romney promised to release “multiple years.” (1-19-12). In the end, however, he only showed us two years. We don’t know if he is hiding something, or telling the truth. Gingrich said Romney lives in a world of Swiss and Cayman Island bank accounts (1-26-12)

(D) BUDGET, NATIONAL DEBT, MILITARY SPENDING: Romney said we need to stop spending like we have for the past 40 years. (1-8-12). He was critical about leaving debt to the next generation. (11-9-11). He claimed he would cut spending, but he didn’t explain how (11-9-11), except by saying he would ban earmarks. (2-22-12). Romney promises not to cut wasteful military spending, of any kind. (10-11-11). He wants 350 million for the F-22, more aircraft carriers, more Navy cruisers, more Air Force bombers, and more troops. (11-22-11). He would increase Navy shipbuilding each year from 9 to 15, and would add 100,000 troops. (12-15-11) (1-23-12) (2-22-12). He makes the case for the other side, saying Obama is shrinking the military (1-7-12) Romney thinks our Navy is smaller than it was in 1917, and our air force is smaller than it was in 1947. (1-16-12) (1-23-12).

(D) JOBS: Which party would be better for promoting jobs? Obama inherited a recession where unemployment reached over 10% in 2009. It is now down to 7.9% and the trend has been in the right direction the past three years. Romney incorrectly argued no jobs were created from the job stimulus bill (10-11-11) He said Obama’s polices worsened the job situation, which is obviously a false claim (1-7-12). Romney argues the government doesn’t create jobs (12-15-11), the private sector does (12-10-11), but then inconsistently blames Obama for not creating jobs.

(D) LABOR: Which party is more likely to protect the rights of working people? The National Labor Relations Board (NLRB) insures fairness between organized labor and management. Romney said he would curtail the NLRB (12-10-11), and would promote anti-union “right to work” laws throughout the U.S. (1-8-12) He repeatedly showed hostility towards the NLRB, by saying it was filled with “labor stooges” (1-8-12) (1-19-12).

(D) MINIMUM WAGE: Do you think Romney would ever promote an increase in the minimum wage? In one word: no.

(D) MANUFACTURING: Which party appears to be more interested in saving American manufacturing? The Republicans clearly opposed loans help GM and Chrysler get through the Great Recession. Over fierce opposition, Obama helped them. Had they gone through bankruptcy, the nation would now be reeling from the economic ripple effects. Obama took a gamble and succeeded.  Romney said funds should not have been used to bail out GM and Chrysler (10-11-11) Romney again said the auto bailout was wrong; they should have gone bankrupt. (11-9-11).

(D) AGRICULTURE: Romney would end farm subsidies as he said to let the markets work. (1-23-12). What he is actually promoting is a localized depression in Midwestern small towns.

(D) TRANSPORTATION/MASS TRANSIT: In one debate, Romney advocated improving the infrastructure, by rebuilding bridges, roads, rail beds and air transport systems. We can’t criticize him for that, but we should not forget his party harbors the likes of Gov. Walker of Wisconsin and Gov. Scott of Florida, who blocked mass transit proposals. So on transit, it appears the Republican Party will not help America enter the 21st Century.

(D) ENERGY: Who has the better energy policy? Romney wants energy security and independence by using our own resources (10-18-11 (1-7-12) (1-19-12) That’s a nice idea, but energy resources are fungible and are sold on world markets, so no nation controls them. Romney put emphasis on developing coal, oil, gas, and nuclear (9-7-11)(1-16-12) He’d give more permits for natural gas and oil drills. (12-15-11). He does not discuss solar or wind, but why not? Since Obama includes all energy resources, his policy is better.

(N) ANTITRUST: Has either candidate advocated antitrust lawsuits to break up companies too big to fail? No. Antitrust was a Republican idea in 1890, and prosecutions are now needed to break up the concentrations of power in the hands of a few.

(D) FEDERAL RESERVE: Romney claims Federal Reserve chair Bernanke pumped too much money into the economy (9-7-11), and he would discharge him. (10-11-11). He said Congress should have Fed oversight, but no control over the currency. (9-12-11). Since Romney is opposed to priming the pump through Monetary Policy, how would he have stimulated it?

(D) BANK BAILOUTS: At one point, Romney said he didn’t want to save the Wall Street banks, as Bush did (2-22-12). It appears he would have just let the system collapse, but if that had happened, we’d be in a deep depression right now.

(D) WALL STREET: Romney correctly pointed out the derivatives market was not regulated (1-23-12), but he failed to promote a regulation of it. He instead criticized those occupying Wall Street, by saying they were engaged in dangerous class warfare (10-18-11).

(D) HOUSING: Romney supported the Troubled Asset Relief Program (TARP) (10-11-11) (10-18-11) He accused Fannie and Freddie of offering mortgages to people who can’t afford them (1-26-12). He opposed the Dodd-Frank law, claiming it makes it harder for banks to make loans (1-7-12)(1-8-12).  He said the government should not stop the banks from foreclosing (10-18-11). He claimed Obama was holding off the foreclosure process, and argued we must let the market work (11-9-11) His non-solution solution is to block-grant housing vouchers (2-22-12).

(D) VULTURE CAPITALIST: If Romney wins, he’ll be the first President with a vulture capitalist background. He claims to have successfully operated businesses (12-15-11), but he was really a Bain investor, who just made money for himself and his partners. Gingrich accused him of profiting by stripping American businesses of assets,  bankrupting companies, and laying off workers (1-7-12) Romney said they had to be downsized (1-7-12) Gingrich said Romney’s Bain looted companies and left people unemployed (1-8-12). Gingrich said he was engaged in vulture capitalism. (1-16-12). In an interesting contradiction, while discussing tax returns, Romney said his income came from a blind trust. He said the money I earn: “is not made by me.” (1-26-12).

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05/09/2012

Obama Inherited the Great Recession

The way many Republicans and right-wingers talk about the American economy, one might think the Great Recession of 2008 was somehow single-handedly caused by President Obama, but in case we have forgotten, the crash occurred under the watch of President George W. Bush, and when he vacated the White House in Jan. 2009, he left behind several major economic problems.

OBAMA NOT TO BLAME: While Gov. Romney repeatedly said during the Republican debates, he did not blame Obama for the Great Recession, he dishonesty suggested Obama’s policies were somehow responsible for making it deeper, and causing it to go on longer than it should have.

WHAT WOULD ROMNEY HAVE DONE? But what would Romney have done if he had been President in Jan. 2009? What if he had inherited the Great Recession?

HOUSING CRISIS: The housing market had collapsed, as the value of millions upon millions of homes, all across the country, had dropped to roughly half their previous values. Many suddenly realized they owed far more on their mortgages than their homes were worth. Their residences were considered “underwater.” As the Fed used Monetary Policy to keep lending interest rates low, Obama instituted a homeowners program to allow refinancing at lower rates. If Romney would have been President, he would have taken no action to get private homeowners out from their underwater status. It is just wrong to suggest millions of homes could have recovered from their depressed values in just 4 years.

BANKING MELTDOWN: Banks and some insurance companies were collapsing as the Bush Administration, followed by Obama, did everything they could to shore them up with government bailout loans. While it is now easy to say we should have just let them go bankrupt, the ripple effect of a free market free-fall would have been catastrophic. A hands-off policy would have triggered another Great Depression, with major economic failures in all economic sectors, bringing record levels of unemployment.

AUTO BANKRUPTCY: The recession caused General Motors and Chrysler to lose so many sales, they faced bankruptcy, and no private bank was able to lend them any money. The only option was a federal bailout loan, but Romney repeatedly opposed any financial help whatsoever for the beleaguered auto industry. If he had been President, these major industrial employers would have gone bankrupt, and the ripple effect would have killed thousands upon thousands of additional jobs at component part factories throughout the industrial Midwest. Once again, inaction would have turned the Great Recession into another Great Depression.

WALL STREET CRASH: Obama inherited a stock market that had crashed, and a Wall Street trading system that was dealing in unregulated derivatives, contributing greatly to the problem. While Democrats took action by passing the Dodd-Frank bill to eliminate financial abuses, the Republicans held firm to a hands-off business as usual approach. What would Romney have done?

HIGH UNEMPLOYMENT: When Obama took office, the level of unemployment was literally sky-rocking by the hour. Obama did what any reasonable President would have done, by signing a job stimulus bill, designed to help people get back to work. While the federal government used Keynesian economics through deficit spending to prime the pump, Republican Governors in nearly 30 states did exactly the opposite, which was counterproductive, by laying off people, and making the recession worse.

A pure capitalist total free market response to the Great Recession would have triggered a Great Depression. The history of the 1929 Stock Market crash, and the subsequent four years of inaction under President Hoover, proved that point. Governments must do what they can to help the nation out of a deep recession, and it appears Obama did as good a job as any President could have.

12/13/2011

Republican Debate in Iowa (12-10-11)

Six of the remaining Republican candidates, with the notable absence of Gov. Huntsman, debated in Iowa on Dec. 10, 2011.

CANDIDATE HARDSHIPS: Romney admitted he didn’t grow up poor. If people are looking for that background, he said, he is not their man. He said his father taught him hard work, by making sure he had jobs, such as serving overseas for his church. While debating health care, Romney however showed how out-of-touch he is with normal people, by offering to bet Perry, not $10, but $10,000, over the content of his book. Perry explained his family didn’t even have running water, until he was a 5-year-old. Paul worked his way through college, saying they didn’t have much. Bachmann got a job at age 13, when her mother divorced, and her family dropped below the poverty level. Gingrich’s father was in the army, causing him to move about a lot. Santorum was happy to have lived in a modest setting with a father and a mother.

FOREIGN POLICY: Paul would stop being the policeman of the world, allowing us to cut billions from overseas spending. He said we don’t need another war in Syria or Iran. We pretend we are leaving Iraq, he said, but we still have 17,000 contractors there. He would get rid of the new embassy in Iraq that cost 1 billion.

IRAN: Perry thinks Obama could have retrieved or at least destroyed the Drone recently downed by Iran. He believes China and Russia now have the Drone’s highly technical equipment.

SPACE: Romney disagreed with Gingrich’s idea to establish a lunar colony to mine minerals from the moon. Gingrich said he only wanted to prompt kids into dreaming of going to Mars.

PALESTINE: Paul correctly explained: when the Ottoman Empire ruled the Mideast, neither the Israelis, nor the Palestinians, had independent states. He suggested letting the people in that region deal with their own problems, as we cannot be the policeman of the world, or settle their disputes, because we are broke. Gingrich, ignorant of history, called the Palestinians an “invented people.” He labeled all of “these people” terrorists. He accused them all of teaching terrorism in schools. He exaggerated, suggesting Israel was getting rocketed every day. He believes the Palestinian “right of return” to their homeland, now illegally occupied by Israel, is based on a historically false story. He incorrectly suggested the word “Palestine” did not become a common term until after 1977. The Chief Palestinian negotiator correctly observed Gingrich’s statements will give Bin Laden like extremists, ammunition for a long time. Romney agreed with “most of what Gingrich said, except the Palestinians are an invented people.” He criticized Obama for wanting to go back to the 1967 borders, as he thinks this would only make things more difficult for Netanyahu. Our disagreements with Israel, he said, should be conducted in private. Bachmann went to Israel in 1974 and worked on a kibbutz. Before she would make any statements about Israel, she would first call Netanyahu to seek his permission, by asking him “would it help if I said this?” She thinks all Palestinians teach their children to hate Jews. Santorum said “the Israelis have a right to determine what happens on their land,” but incorrectly believes, “the West Bank is Israeli land.”

IMMIGRATION: When Gingrich was asked how many years an illegal alien would have to live in the U.S. to get special consideration, he said the issue would be turned over to local review boards, who would consider whether they had been a good local “citizens,” or belonged to a church, before granting residency, not citizenship. He doubted there are 3.5 million who have been here 25 years. He wants severe penalties for employers who hire illegally. Romney said amnesty would give rights to education and health care. He does not want to encourage another wave of illegal immigration and would make them get in the back of the line with everyone else who wants to come here. Perry would enforce the immigration laws already on the books. He would not do catch and release, or sue states like Arizona.

WALL STREET: Bachmann opposed the Wall Street bailout, as they made foolish decisions, took profits in good times, but when things went bad, their losses were socialized. Paul said the Middle Class is being destroyed, and things are only going to get worse.

SOCIAL SECURITY: Perry accused Obama of defunding Social Security through a payroll tax cut. We can’t fix the Trust Fund by taking resources away from it. Either you care about Social Security, and you fund it, or you don’t, he said.

HEALTH CARE: Bachmann said Gingrich advocated for an individual mandate for over 20 years, and Romney implemented socialized medicine in his state. Perry also accused Romney and Gingrich of favoring the individual mandate. Gingrich said the mandate idea arose in the 1990s in response to Hillary Care. Newt said he fought Obamacare every step of the way, incorrectly arguing if Congress can make you buy insurance, they could make you buy anything. He said the whole third party payer model, public or private, has become difficult and expensive, suggesting we return to a doctor-patient relationship, with Health Savings Accounts, so people are involved in their own health care costs. Santorum opposed the mandate in 1994, while a Senate candidate, and supported Medical Savings Accounts. Romney authorized the mandate in Mass, because three of four supported it. He said Obama’s plan does three things Mass. did not do: 1) raise taxes 500 billion; 2) cut Medicare 500 billion; 3) take over health care. Obama’s plan, he said, is wrong, and should be repealed, because it cuts Medicare and raises taxes. He thinks the Supreme Court will declare it unconstitutional, as it violates the 10th Amendment. The right course, Romney said, is to let each state experiment.

JOBS: Gingrich thinks he will create jobs by lowering taxes, repealing regulations, and developing energy. Romney said jobs are not created in Washington, but in the private sector. He would do seven things to create jobs: 1) lower tax rates; 2) change regulations; 3) alter trade policy; 4) use energy resources; 5) curtail the NLRB; 6) use human capital; and 7) limit government spending. Paul thinks jobs are related to financial bubbles, caused by excessive credit, stimulated by the Fed. The debt, he said, inhibits economic growth. Instead of liquidating it, it was dumped on the American people. Paul said the culprit is big government spending. Bachmann thinks she would create 1.4 million jobs by legalizing American energy. She would cut Obamacare, as she believes it will cause a loss of 1.6 million jobs. Santorum said 21% were employed in industry, but now it’s only 9%. To revitalize it, he would eliminate income taxes on manufacturing.

LABOR LAW: Romney does not agree with Gingrich’s idea to abolish Child Labor laws, or have kids clean schools. He said those laws don’t need changing. Gingrich thinks kids should learn to work at an early age, saying janitors in New York are paid twice as much as teachers, and children should take their jobs.

HOUSING: Paul said Gingrich supported TARP, and received a lot of taxpayer money from Freddie Mac, which is essentially a government organization. Gingrich denied being a lobbyist for any government agency. He said he was only paid to give advice. Paul reminded Gingrich he took taxpayer money.

ENERGY: Gingrich said he testified against “cap and trade” and helped defeat it in the Senate, the same day Gore testified for it.

TAXES: Gingrich would eliminate capital gain and death taxes, and would lower corporate income tax rates to 12.5%. Perry wants a flat tax of 20%. Bachmann would abolish the entire Federal Tax Code, and replace it by lowering tax rates for individuals and businesses, and increasing them for the poor, by making sure everyone pays. She said 47% pay no federal income tax. She opposed the payroll tax cut for ordinary Americans, because she called it a gimmick that took 111 billion from the Trust Fund, forcing us to go to the Treasury for the difference. Romney called the payroll tax cut a Band-Aid.  He repeated his desire to help the rich, by eliminating taxes on interest, dividends and capital gains.

FAMILY: Perry said if you cheat on your spouse, why wouldn’t you cheat on anyone? Santorum would not go so far as to say character is a disqualifier, since people make mistakes, but said it’s a factor. Gingrich admitted, as a 68-year-old grandfather, he made mistakes, but went to God for forgiveness, and the question now is whether he can be trusted. Bachmann declared herself an unashamed and unapologetic Christian. Paul, married for 54 years, said marriage vows are as important as the oath of office. If we took our oath seriously, he said we would get rid of 80% of government, have a balanced budget, not be the policeman of the world, not have a Fed Reserve, and not invade the privacy of citizens under the Patriot Act.

10/19/2011

Republican Debate: Nevada (10-18-11)

The Republican Presidential candidates debated in Nevada.

DEFENSE SPENDING: Ron Paul said there is a lot of money in the military budget that does no good. We have an empire with 900 bases in 150 countries, and would be safer if we were not in so many places. Why keep troops in Korea, Japan, or Germany? We have more weapons than all other nations combined, Paul said, enough to blow up the world 20 to 25 times. Bachmann said defense spending should be on the table, but not 500 million. Gingrich would determine our threats, and calculate the cost of a response. Santorum would not cut a penny of military spending.

AFGHANISTAN: Ron Paul said the U.S. should withdraw from Afghanistan, because the Soviet Union was brought down by entering that country, and the same thing will happen to us.

FOREIGN AID: Romney said we spend more on foreign aid than we should, and we should let China do it, because it makes no sense to borrow from China to give aid to others. Paul would cut all foreign aid, including aid to Israel, saying the Constitution does not authorize it. Aid to Israel does not help, but only teaches dependency. We take from the poor, Paul said, and give to the rich in poor states. He said look at the aid we gave to Egypt. We spent billions pumping up a dictator, and yet they are hostile to us. Cain would give foreign aid to friends, like Israel, but not enemies. Bachmann opposed cutting foreign aid to Israel, since she believes they are our greatest ally.

ISRAEL: Bachmann incorrectly accused Obama of being the first president since Israeli independence to put daylight between our nations. (She never studied Eisenhower’s stand at Suez in 1956)

UN & PALESTINE: Perry thought it was a travesty for the Palestinian Authority to go to the UN to seek statehood. He asked why the U.S. is contributing to the UN. He would defund it.

LIBYA & IRAQ: Bachmann wants Libya and Iraq to reimburse us for the cost of bombing their countries. She wants our troops to have immunity for any and all wrongdoing committed in Iraq.

IRAN: Bachmann accused Iran of an attempted assassination on U.S. soil. The number one global issue, she said, is Iran and nuclear weapons. She called their leader a genocidal maniac, but offered no proof to back up her claim. Santorum also said our central threat is Iran. Neither candidate explained how or why they see Iran as a credible threat to the U.S.

TERROR: Paul said Reagan negotiated with Iranian terrorists for a return of hostages. Gingrich said Reagan made a mistake. Bachmann would not release anyone at Guantanamo. Can would not negotiate. Santorum would never negotiate, period.

WALL STREET: Cain had said: “Don’t blame Wall Street, don’t blame the big banks. If you don’t have a job, and you are not rich, blame yourself.” He said Wall Street did nothing wrong; they did not spend a trillion for no good. Protesters should be in front of the White House, Cain said. Ron Paul accused Cain of blaming victims. He would protest in front of the Federal Reserve and in Washington. The bailout was supported by both parties, Paul said. They bailed out big corporations, who ripped off people in the derivatives market. They thought the world would end if we did not bail banks out. The middle class got stuck. Paul said if money was given out, it should have gone to people who lost their mortgages, not the banks. Romney called the protests dangerous class warfare, and said Obama is to blame over the past three years, as he says he has no idea how the private sector works.

HOUSING: Santorum said Romney, Perry, and Cain supported TARP. Cain said people on the top who took risks got bailed out in 2008, but the market should have been allowed to work. Perry wanted Congress to act, but did not want TARP. Santorum said Perry supported the particular TARP plan on the House floor. Romney said government should not give a couple thousand dollars to buy a new home, or to keep banks from foreclosing.

JOBS: Perry wants to focus on the 9% unemployed. Santorum said no more products “Made in America” hurts the middle class. Gingrinch wants America off food stamps and on paychecks. Romney said half the jobs created in Texas were filled by illegals.

IMMIGRATION: Texan Ron Paul said a fence is not the answer to illegal immigration. We worry more about the Afghan and Pakistan borders than our own, Paul said, and need to bring our National Guards home so they can guard our borders. Perry blamed the federal government for failing to secure the 1,200 mile Texas border, and for the huge number of illegals looking for jobs. Businesses who hire illegals ought to be penalized, Perry said. He does not want to repeal the 14th Amendment as to citizenship by birth. A fence could be built, Perry said, but it would take 15 years and 30 billion. He instead recommended strategic fencing where it matters, and predator drones to direct boots on the ground. Perry accused Romney of hiring illegals to work on his property, but Romney denied it, saying it’s hard to know if lawn care contractors employ illegals. When he learned they hired illegals, they were let go. Perry also accused Romney of offering amnesty to aliens. Romney said Perry was the one open to amnesty, and accused him of creating a magnet by giving aliens a $100,000 tuition credit, a practice that must end. We must stop employer magnets by enforcing E-Verify. Romney also said 4.5 million want to come here legally in an orderly way. He said Perry’s Texas had a 60% increase in illegal immigration, while California and Florida had none. Cain would build a fence and have it electrified. He would promote a path to citizenship, and shut the back door, so people could come in the front door. He wants to empower states. Bachmann accused Obama’s aunt and uncle of being illegal aliens. She took a pledge to build a wall, saying illegals cost 113 billion a year. She would also enforce English as the official language. She said they cross the border to have anchor babies and the welfare that come with it. Gingrich said to 50 million Latinos, not all of whom are illegal, that America is the most open nation to immigration in history.

ENERGY: Paul said it’s wrong for 49 states to dump nuclear garbage in Nevada. Romney said Nevadans should have the final say and not have it jammed down their throats.  He wants energy independence, using our own natural resources. France gets 70% of their energy from nuclear power, Perry said. He wants 1.2 million people working on energy. We shouldn’t rely on OPEC, saying we should be energy independent. We need not subsidize energy. Gingrich wants a safe way of take care of nuclear waste.

HEALTH CARE: Paul said we need more medical competition. Americans should be allowed to opt out of Obama’s health care. Bachmann said even the Obama Administration realized they cannot afford Long Term Care. Santorum said Obama failed to focus on the cost of health care, which is the real problem. He said Romney has no credibility, since Obama’s plan was basically his. Romney called Obama’s plan unconstitutional, which should be repealed, as it is a huge burden on the economy. He would turn Medicare over to the states. He said his plan for Mass. was not for the entire nation. The idea of the individual mandate came from Gingrich, Romney said. His state relied on private insurers. The uninsured got private not government insurance. When it comes to knowledge about health care, Romney said I am the doctor. Gingrich admitted supporting the individual mandate in opposition to Hillarycare, but the Heritage Foundation came up with the idea. He said a small business is Mass. is being ordered to pay a fine of $3,000 for not paying $750 month in premiums.

TAXES: Cain tried to defend his 999 tax plan, which would impose a 9% federal sales tax and repeal all tax breaks. He argued it would remove all hidden income taxes in goods and services, and was not a value-added tax, but a single tax, which was revenue neutral. He failed to convince anyone it would not raise taxes on those making the least. Bachmann, a tax lawyer, also wants to abolish the tax code, but said Cain’s 999 plan would destroy the economy. She warned if Congress was given a new sales tax, it would never go away. She argued it would be applied against products at every stage of production. Everyone should pay taxes, she said, even if it is only $1. Santorum said 84% of Americans would pay more under Cain’s plan, which eliminates all deductions and exemptions. Getting rid of deductions would mean those with home mortgages would pay more, and people with three children would pay the same tax as a single man. He favored cutting the tax rate for manufacturing to zero. Perry, whose state already has a 6.25% sales tax, said Nevada’s is 8%, and New Hampshire’s is 0%, but no state wanted a 9% federal sales tax; they want flatter and fairer taxes. Romney said to a cheering crowd, Nevada does not want a 9% federal sales tax on top of an 8% state sales tax.  Paul opposes Cain’s plan, because it is regressive and increase taxes. He would replace income taxes with nothing. Gingrich wants to reduce capital gains taxes to zero.

RELIGION: Perry disagreed with the pastor who said Mormonism is a cult. Romney said the Founders appreciated the Freedom of Religion. The Founders went to great length to create a nation with a Constitution that respected all.