California Republican debate transcript

Moderator: Senator McCain, some of your colleagues have been hit pretty hard on flip-flops, but you now support extending President Bush's tax cuts.

But you originally voted against them. That makes no sense.

McCain: Because in the proposal that I had, there were significant tax cuts. And the thing that bothered me was that there was no provision to start addressing Social Security or a contingency.

We had a contingency called the Iraq war. And we had no restrain on spending. And spending got completely out of control.

Yes, these tax cuts needs to be made permanent. Otherwise they will have the effect of a tax increase. But spending is destroying the future of this country. And we've got to get it under control.

And as I started to say before, the first pork barrel earmark bill that crosses my desk as president of the United States, I'm going to veto it and I'm going to make the authors of it famous.

Moderator: OK. Let's start with an enjoyable down-the-line, OK?

I want each candidate to mention a tax you'd like to cut, in addition to the Bush tax cuts, keeping them in effect.

Governor?

Romney: I like middle-income Americans to be able to save their money and not have to pay any tax at all on interests, dividends or capital gains. And by the way, we're all talking about...

Moderator: A zero rate on capital.

Romney: A zero rate on capital gains for middle-income Americans. And by the way, we're all talking about how anxious we are to veto overspending. I was a governor. I've done it hundreds of times. I can't wait to get my hands on Washington's budget.

Moderator: Senator?

Brownback: I'd put forward an alternative flat tax and allow people to choose between the current tax code system, which doesn't work, which I'll be taking behind the barn and killing with a dull ax, and an alternate flat tax and let them choose.

Moderator: Governor Gilmore, tax you'd like to cut?

Gilmore: You know, Chris, I've been a governor of Virginia. I ran on a tax cut proposal, and I ran on eliminating the car tax in Virginia. I received terrific opposition to doing that. I kept my word, kept my promise, and we eliminated that car tax. Now, the question is, who is actually going to do what they say they're going to do? Where have you been is where you're going to go, and I have actually lived up to my word.

And the answer is, the alternative minimum tax, which is continuing to drive people in the middle class into higher and higher tax brackets (ph).

Moderator: Governor Huckabee.

Huckabee: Well, I cut taxes 94 times as governor, but I realize tinkering with it doesn't work.

I'd overhaul it. I would work for the fair tax, which meets the four criteria: flatter, fairer, finite, family friendly. We'd get rid of the IRS. We're get rid of all capital gains, income, corporate. And we'd have a consumption tax.

The fair tax proposal, I believe, offers the best opportunity for all levels of Americans.

Moderator: Congressman, your turn.

Hunter: Absolutely. Chris, you know, right now our manufacturers are getting killed. We're seeing manufacturing move offshore because a dumb trade deal that we signed with the rest of the world allows all of our exports to be taxed twice while their exports to us are not taxed at all.

The only way that we can even come close to leveling that playing field is to eliminate manufacturing taxes. So eliminate all taxes on Americans who will stay in the United States and make products and hire American workers.

Moderator: Governor?

Thompson: Thank you very much.

I'm excited about this question because I was governor of Wisconsin and vetoed 1,900 items -- 1,900 times -- reduced taxes $16.4 billion.

I think the biggest problem we've got in America is the alternative minimum tax that's bringing more middle-income people in. Let's put it in -- let's have the people have a flat tax and have the option of paying whichever is least.

Moderator: Senator McCain?

McCain: I'd give the president of the United States the line- item veto on these bills as well as spending bills.

The alternative minimum tax is obviously eating Americans alive, and it's got to be repealed.

Another one -- another one I think is important is a $3,000 tax credit for people to be able to purchase health insurance. So low- income Americans will have access to health care, which is an amazing and difficult problem today.

And a simpler, flatter, fair tax so that Americans don't have to spend $140 billion, as they just did last April, to prepare their tax returns.

Moderator: OK.

Dr. Paul?

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