[captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2010] . .

it is a tossup between governor pat quinn and bill brady. mr. quinn was governor when rob blagojevich was removed from office last year. mr. brady 01 the gop primary by

fewer than 200 votes. this debate is a little more than an hour. >> good morning, everyone. a 50 years ago in chicago, in nixon's last kennedy debate made campaign history. 102 years before that, senator stephen douglas and abraham lincoln made history in illinois. we take great pride in welcoming all of you here tomorrow for the 2010 gubernatorial campaign. a warm and union league club of chicago welcome for governor pat quinn and senator bill brady. [applause]

please, do your best with block letters in short question so your moderator can get them out to our candidates. i will try to group them. please, try to get them in the early. we are going to have a rose mary reed and david cone. they will be picking up the questions from me. lucy beekeeping time for us. you do not want to miss -- will

be keeping time for us. you do not want to mess with lucy daley. governor pat quinn will begin with the opening statement. with that, we began. the governor quinn, your opening statement. >> thank you very much. i want to thank you for hosting this debate. i also want to think the union league club for the devotion to helping our veterans and service member families. we have many efforts to make sure we help those that needed. -- need it. the governor knows and our sworn into office on january 29 hours state faced three major crises, probably the tough time in illinois history.

we also had a budget crisis in our state partly because of the great recession and also because two decades of failure by governors and the legislature to address the deficit problems of our state of illinois. we also had an integrity crisis. huang governor was arrested and impeached and removed from office. he is sitting in in jail for corruption. that is what i face to nye became governor of illinois, three major crises. i took on the crises and rolled up my sleeve. i have worked hard ever sense the dince.

we have recalls on the ballot this year in november for the people to put in our constitution. i got it there. we dealt of our budget problems. i cut the budget by more than $3 billion in illinois, more than any other governor in history. i cut the pay in our office by 35%, more than any other governor. live also reduce employees since a garment. we have taken on public pension reform. it'll save taxpayers $220 billion. we also dealt with issues that involve making sure we are taking on fraud and waste. we strengthens the whistle blowers to make sure it came first.

in order to have good jobs, we must have a budget in a government that is honest in deals with investing with the people of illinois. ahoour state has grown jobs this year more than any other state in the midwest. we had eight straight months of declining unemployment. we have enacted the largest capital in the history of illinois. we have invested money to improve our roads and bridges and infrastructure. we have put together a booklet put illinois to war," the mos -- put together "put illinois to work," the most successful program. i am a job as governor.

i know how to work with large and small businesses. ford is expanding their manufacturing 1200 new jobs to build a new ford explorer. they did not pick indiana. they did not take any other state. they picked illinois. we have hard-working workers. they want to continue to do that across illinois to create the jobs we need for this year and years to come. thank you very much. [applause] >> thank you. in morning to all of you. -- good morning to all of you. there is no mission on a more. thank you all for being here this morning. if i might introduce you to my

background. i mean from bloomington, illinois. i steadied predominately economics. when married 28 years ago. we have been blessed with three wonderful children. two of them are here in chicago with us o. our daughter katie is a nurse. our son is in high school on the football team. my family is important to me as is yours. we decide illinois is a place to raise our family. challenges faced businesses each and every day. and not those challenges are like.

we need a governor who will face the challenges for illinois. our state is in a difficult spot. the numbers are horrifying. over $75 million in unfunded pension obligations. over $5 billion in unpaid bills within the clinton administration. -- current administration for the. over half of those obligations have been incurred in the past eight years. i believe in illinois. we worked in an agricultural based economy. our energy resources abound. i believe if it is the greatest opportunity of any state to

grow. you have heard me say we have unemployment problems. we have a problem in illinois. in the last decade, we lost the opportunity to create 800,000 jobs. in the last 15 months, we have lost 200,000 jobs. that is not a national problem. over 35 states treated more jobs with your assets and opportunities and illinois. i have said higher taxes and fees created jobs will be the numbers 1 state in the nation. we need a real job as governor. businesses are looking for stability. i call for stabilizing the environment without raising taxes. i call for leveling the playing fields, reforming workers'

compensation and medical malpractice and reducing the fee structure that pushed many businesses to neighboring states. i will initiate a council of economic advisers. we estimate the brightest businessmen in the state. but we cannot continue to spend beyond our means. we cannot work our way out of this crisis with higher taxes, more borrowing, and more spending. we can prove to the country that we have fiscal integrity. we are a state the want to see jobs reinvested. thank you. >> thank you very much.

we are getting a letter to your questions. -- a lot of terrific questions. in the first six months of your respective terms, can you state your five top priorities to reduce the multi-billion dollar debt of the state while still paying our bills? >> we want to continue our economic recovery. i did in here to the kind of things that senator breaches talk about. -- preeti just talked about. we need to keep cutting costs. we need to enact our public pension reform. i actually implemented that. we will save hundreds of millions of dollars by reducing

public pension costs. i also want to manage care for medicaid. we are going to restructure the medicaid problem. we will do it in a sound wave. it is important though we save money on their vehicles. honthe state has to do this economically. i impose furloughs on myself, 24 unpaid days off. i cut my pay unlike senator brady anwho refuse to cut his pay. it will continue. we will also negotiate to reduce our employe costs of a bi. >> with all due respect, the fed 20 months to implement those

plans. unfortunately, our state as the nation. the first thing i will do is cause for a 10% reduction. most families have implemented reduction in these times. most of the snow you can cut 10% of spending. there is so much we do not know about. we need to know the truth. we will reform our medicaid system to deliver services at the primary care doctor. we must demand efficiencies of

the zero professionals and place. >> senator brady, this goes to you. what is your plan to keep businesses in illinois? >> simply put, we have to make illinois competitive to work in do business. there are taxes i called for reducing. the estate tax has put retiring baby boomers as a penalty. we need to eliminate that. the sales tax on gasoline to neighboring states. when need to level the playing field. medical malpractice drives them to drive up the cost. we need a long-term plan. we need to define what we need to look like not just next year

but in the next 20 years. this is what out of illinois and turn themselves to other states because of the fiscal crisis. >> they had to stay in illinois and grow and eleanor. this will magnify into 12,000 supplies. they give 3000 jobs in this state. they are not going to the south. it is remanufacturing to our state of illinois.

you have a governor who can work with the ceo and small businesses. what is going to grow our economy is targeted debt cuts that help businesses grow jobs. we have enacted the small business job creation tax credit. we have enacted put an illinois to work. >> thank you for that. we want to talk a little bit about the possible cut. i have a lot of questions about being specific regard any kind since the budget. >> the records show the we have that the budget in our state by $3 billion. the budget was about $28 billion. it is not $25 billion. that is the biggest cut in the

general revenue funds in the history of our states, far more than any governor. i will continue to do that by applying the reductions we need to reduce expenses on we have protected our scholarship program. we've already cut the state budget by more than 10%. it is a very important to let the governor that has a budget plan. that is what i present every year. we will continue next year to cut the budget where it has to be cut. we are not going to cut their programs for veterans. i believe in that.

>> you have not cut spending. with record deficits and debt. your own numbers. yet to become the announced a plan to create jobs. are pink and state resources in the private sector when it cannot meet obligations. we need real discipline. we cannot put a dime on every dollar. we can root out waste and inefficiency. we have to work with our providers to provide access. the costs are reduced. these are all of big-ticket items in need to be done.

it needs to be reduced to a level we can afford. we are in the position of having the worst bond rating. it'll cost us another five printer million dollars. >> it relates to human services. how will you prioritize position human services in the state budget, especially in relation to state pensions? how you plan to cut further? >> i have committed to funding pinza's.

we have to deconstructs and reconstruct. we have to get best practices. as governor, i will bring experts say you cannot get the best practices. we can learn from our competitors or our peers in other states. >> ford picked illinois. >> he cut the education budget by more than $1 billion.

we have to have a government that understands the nonsense and it comes to the budget. he wants to increase the budget deficit and giving tax breaks for the wealthy. i do not one to lose a generation of children or take away scholarships from schools. under center brady, thousands of students will lose their scholarship because of his cut. >> thank you. we are going to go to you first. we have a couple of questions on education. we are joined by a special person here. is the death -- beth still with

us? she is in a greater hero this question. let's say hello to beth. [applause] >> what is your plan to supplement the deficit in education funding? pretty good question for an eighth grader or a major reporter. >> i agree. thank you. we look forward to serving with you. i think it is important. jobs followed brainpower. i believe in that. we have a good education and grammar school.

warner thousand students in illinois give scholarships from our state -- 400,000 students in a malay get scholarships from our state. my opponent wants to cut that by over $1 billion. that will not get our state to a better place. it is important we get revenue for education preven. we are getting for under $50 million new. own problems. we have to reset the clock.

every party had departed the reconstruction of the state. we cannot continue down the path of governor clinton. think about it. -- governor quinn. think about it. these are resources that can go to our schools. it is the resources to better fund education. we need to stabilize it. record deficits and debt. if we delivered and do not leave them with an i/o you come and they can manage the resources a local level to provide a quality education.

>> illinois face education reform funds in the first two rounds. what would you do to continue to push for education reform from illinois? >> i've added a partnership with the education committee to try to work resolutions. if there is a federal program, i think we should tap into it. we have to make sure the rate to the top of degrees to the top is sustainable. i think working with the business community and educators will better enhance it. we have to realize that the fundamental challenges we face are here for illinois. we cannot continue to look to washington, d.c. to bail us out.

>> less than might take, people in illinois -- we are entitled to a governor that will go to washington and roll up his sleeves to get money back. we've got $450 million new in illinois. you just heard senator brady would not go to washington. he'll keep the money there. this is wrong. it is also wrong to say he will cut the budget for education. he did not live up to our constitution in illinois. if our state does not live up to this, there are 17 years of politicians. it sits the burden onto the property taxes.

according to center brady, and there will be a natural rise in property taxes. >> how do you intend to deal with pension fund underfunding going on? >> we have paid our pension payment each year i was governor. what also enacted the most far reaching public pension reforms of any state in the union ever. economist remarked of the people of illinois and their governor reform the public pension system. it'll save taxpayers $220 billion. but the people have talked about

it. we got it done. this is how you role of your sleeves and get it done. what legislative accomplishment has he ever done? what did see them when it comes to the record? >> kmbc next governor cannot manage resources? it is wrong. you know it. when it comes to pensions, let's be realistic. in the blagojevich administration, they doubled the

unfunded liability in our pension systems over $75 billion. i want to protect the men and women who paid into the pension system. they deserved it. we cannot do it if governor clinton is governor. yes defunded them last year. -- governor quin is governor. yes, he wanted them last year. public safety will be our first priority. we cannot continue to bar on the backs of our children and grandchildren. >> speaking with depictionhint'e when you combine the state employees in state teachers' pensions? -- speaking of pensions, will you combined the state employees

and state teachers' pensions? >> i do not see any reason to do that. i will run the systems according to the law. we will meet our obligations. we will not dig a deeper hole. we need fiscal thisdiscipline. it to be affordable for the people of illinois. it cannot continue to kick the can down the road people deserve to know that the governor is willing to have the fortitude to fund those obligations burd. >> there are three major ones for the state. i do not think we should consolidate them. we should enact pension

reform. we have to be careful. we have over $1 billion in tax breaks for wealthy people. this cannot be. this is a world does not exist. you have testimony record of accomplishment. when we have budget reports, we are sponsored by senator kit housekeeping -- senator quick house the. >> many service providers are being held up by the state

brit. will they continue to operate without the funds? >> of the money for sosocial service will be paid by the end of they year. it did not happen after january 29. it sounds like everything began then if you listen to senator brady. the structural deficit grew under governors and legislators. they did nothing about it. it is my job to come in and repair it. this goes to the social providers.

we created more jobs. >> i worked in the legislature for 17 years to balance our budget. it is not just the wealthy that pay the fees. it is small mom-and-pop businesses. my tax breaks will reinvigorate

and create new jobs in illinois. that is what we need. you extend a program that will cost the taxpayers $75 million so you can buy a public-sector jobs for people in the private sector. that is wrong. it is selling out to the people of illinois. >> putting illinois to work began to do it has employed 26,000 people. these are real jobs. they paid $10 an hour. hard-working people needed a job of. i got there.

i put them to work. are we going to lay out 26,000 people? i do not think so. he would keep a program going so the federal government when they consider it again will extend it. the new york times has said illinois has the very best program of its kind in the united states. it is the best way to put people to work. that is what i believe in. there we had a specific -- 26,000 people. they pay for rent and utilities. >> we are in getting the state by promoting a program that we cannot afford.

you going to have the state pay everyone of those people. private sector is not. we want to see them employed. people -- you do not have the money to reimburse them. what about their jobs? what about the services they provide? what about the deficit and debt? this is another this on his campaign ploy. >> we just heard the governor said lisa two of 26,000 people overnight, people who are working with 5000 different employers.

it was all about getting together. it makes trucks and diesel engines 3000 jobs and growing. i'm a job as governor. i know how to work with people. we will lose 120,000 jobs in illinois. >> this rounds into a theme. >> this is but human service providers. your government has left them when hasiou.

those are real -- left them with an iou. those are real jobs. this is put this in this position of the way the state in the nation that is still in a recession. we will free up the private sector and bring permanent sustain jobs. we will support human service providers that depend on the resources. >> i think that it does to our next area, not just spending but also the revenue. i want to ask one and then that summarizes many of the questions. many of us think the general assembly will raise taxes after

the election. will you sign that bill? where reforms do you propose to add just a revenues? the way to bring revenues is to bring the 800,000 jobs that the we lost under the blagojevich administration. i cannot tell you how many businesses are worried about the future. we need a right size government. we pay sales taxes on gasoline. the 800,000 jobs we lost treated

trinity billion dollars in revenue. we need revenue like a state like texas. >> i like illinois. i want to make sure we have a good state today and tomorrow. i heard business owners complain about the property tax in illinois. it is confusing. i want to reduce the property taxes. i do not think this is the right way to go. we should not rely on that.

our state has the primary responsibility for funding our schools. we need an honest governor. they say they will hold down taxes. that is exactly what they do after the election. >> some of these can go to a yes or no answer. you will be the judge of that. will you commit now to be to go a gerrymandered rematch of our legislative and congressional district? >> i would be to show a gerrymandered district. i live the effort with a club to reduce the size of the assembly. i think the best way to implement the will of the people

is to have fair, competitive districts. i will make sure that happens. by reduce efforts to reduce the pay. i think these a the kind of things that the people want. >> the gerrymandered process has ruined the democratic process in this state. it says you have a balanced budget. yet fail to provide people of illinois with a balanced budget. that is first and foremost. when it comes to property taxes come i never advocated an increase in property taxes. you know that. and set it aside for a property tax refund.

>> do you support bringing a riverboat casino to chicago? >> my record has been clear. we cannot solve this process by gambling our way out of it. he is the one who initiated video poker in ever establishment that had a license. this is not meaningful solutions to our problem. meaningful solutions are sustained economic growth through job growth. governor quinn's gramm was a false one. -- proposal was a false one. many communities have opted out of it. it is a wrong direction to head. >> when i was governor, i made your there is a local option

established so people would have the opportunity to not have video gaming in their community. that we have to have funds in illinois. interesting years of debate. illinois did not pass a capital debate. i got this pass. that is a record of accomplishment. he is a career politician. he does not have one single accomplishment as a legislature. i've got a record in getting the job done for the people of illinois. >> what is your position of the

federal take over to house visitors from guantanamo bay? >> uygur to a law enforcement officers and illinois. they are second to none. i believe that we should sell it in illinois to the federal government. they need a new federal prison. they will save tens of millions of dollars to us in order to buy it. i think that is a good deal. i worked with senator obama to make this happen. it is very important for our state. we will use them in a way to get money back to the people of illinois. the new federal prison will

create about 3000 new jobs. we are working right now the federal government to support this. >> we have finally rid ourselves of the productions. >> i would never move the focal point from terrorism in guantanamo to illinois. we need this to house inmates in the state. the governor is willing to sell it for a fraction of what a cost to replace. it makes no sense that he would sell a for what it cost is 10 years ago to build it. >> thank you for that.

we have a couple of questions about women and minorities. >> what would the outlook leave? >> i have been a strong advocate for fostering an environment that gives diversity for women owned and minority-owned contractors. it brings competition. it may set the economic fabric of our state. >> senator brady opposes equal pay for equal work. i think that is wrong. i think we should have equal pay for equal work. we have a very robust program in

illinois, making sure there is diversity whether it is state buildings or roads. we have a building program. my opponent voted against funding for building anything in illinois. we have to have the fortitude to go into the ring and get the funding for paying off. my opponent goes to the reading cuttings to take bows for the spending. he does not want to do the heavy work for the bonds. >> you bring up the issue of contract. this question asks, what plans do you have to facilitate the growth and improvement of this region's public transportation

infrastructure? >> i believe the public transit. i've taken it on my life. i understand how important the cta is. we have money for public transit. we have made sure they have adequate money. senator brady wants to cut deeply our investment in public transit here in northeastern illinois. for people who take the train to work, the wear. this is someone who does not understand the urban need. people need to get to work and school. is important to have the governor understands public and invests in public transit. we do it in a way that is sustainable.

>> do not know where you are coming from. we are going to have to reinvigorate the public transportation system. your revenues from capital bill from video poker in bars and from the tax increase -- the revenues are not there. that is what i warn you of two years ago. let's talk about having the backbone of public transportation. there is an issue we work for in a bipartisan way that would have eliminated threefree rides for the wealthy. we should not be providing free

rides for millionaires in the city of chicago. it has cost us millions of dollars that can be put into the public transportation system. >> this is about the -- we of questions like this from members and supporters. this is something i'm not going to read. it points up that the aging car is a delicacy and become an income stream. [laughter] there is compelling-a. >> says he is sticking to integrate the asian carp into the great lakes system.

>> it is a serious problem. one of the responsibilities is river waste. we can fix the system. to take leadership, we will put people in place to solve this problem. >> i have a record of getting something done. if you can beat them, eat them. >> in illinois, we have a

company that i felt was catching it in the big river and freezing them. they are selling them 30 million pounds of them caught in illinois to people in china. we can do it in a way that creates jobs. we can create dozens of judges are hard-working people. >> another attempt at a yes or no question. [laughter] will you live in the governors mansion if elected this november? >> he is a combat veteran.

he is going to afghanistan in a few days. he is a sergeant. his line to the most dangerous part of afghanistan. i had dinner with him at the governors mansion. i think that is what the governors mansion is all about. we have to in the senate to avenge that the governors mansion. -- we had 272 events at the governors mansion. that is what it is all about. we had our nascar drivers coming down. i think this is what a governor should do. we should celebrate illinois in every which way. >> one saturday night

[unintelligible] i think it is important that the governor does take residents. we a series problems in government. it is the seat is a government. in these difficult times, we need a hand on governor in the state capital. i think it is a slap in the face that the government does not live in the mansion. the people of illinois provided a gracious hospitality for a respectable place to live. as governor, i assure you we would reside there. >> we are getting close to the end. we have several questions related to ethics.

what would you do to improve ethics in the state of illinois government regarding legislative leaders and members of your own administration? >> transparency is the key today. we cannot continue to have secret programs. we have secret early release programs, secret pay houses, a secret tax increases. a secret deal with the state's largest public service union. why can these be on line? what can they know where the real spending cuts are? i will provide the transparency.

we will put initiatives to put every bill owed online. it will be no secret deal of the expense of the people of illinois. >> everything is on line. i think he ought to take a look. >> are your bills online? i'll let you talk. why did he let me talk. we have our boards and commissions for the you can come on line in see the boards and commissions. you can nominate yourself or someone else. we have an active campaign finance reform. a lot of these budget reforms in particular have been opposed by senator brady. i have led the efforts for years in illinois to in a conflict of interest. i collected 158 signatures in 1968.

it is not good for the people of illinois. we need an honest governor to make sure every day people come first without conflict of interest. >> three questions left and then closing remarks. pension and education keep coming up. . .

i also in believe term limits. my opponent is a career politician. when we were passing petitions for this in 1994, he wouldn't pass a petition, he wouldn't sign a petition for term limits. he's been in springfield for 17 years. he says it's time to end career politicians. i agree, we need term limits in illinois and second base had ample -- senator brady had ample opportunity to sponsor term limits but he's refused to do so. you need someone as governor who not only says things, but gets things done. >> senator brady? >> governor, you had a chance for recall four years ago but instead, you decided to call governor blagojevich an honest

man of integrity. where was that recall? i've been involved in the private sector all of my adult life, governor, and i initiated term limits, i've called for term limits, governor. we need honesty and integrity in government. when it comes to pension and education, the double-dipping is a real problem. you had nearly 20 months to pass legislation which would have removed the opportunity to double dip, but you didn't do so. you refuted what your ethics reform committee wanted do. i believe the best model is to move forward like the private sector, employee-owned defined contributions without double-dipping. >> we'll start with for this question about education. senator james meeks has a voucher bill pending in the

legislature. it did not pass this year and it is directed to certain neighborhoods in the city of chicago on a trial basis. if this legislation were to be passed either this november or next spring, i'm not sure of the mechanics of that, but if it were to be passed, and you were governor and it came to your desk, would you sign it, yes or no. >> this is clearly a difference between and myself. i believe in putting students first. i believe parents make the best choice in their child's education. we need to bring more choice, elevate the tax credit for private schools. i worked hard with reverend meeks to provide a voucher option in 20 of the worst performing school districts in the state. we passed it in the state in a bypartisan way and were ready to pass it in the house in a bypartisan way but caved to

special -- governor quinn caved to special interests. i absolutely will move forward on school choice. >> i believe in public schools and that's what our constitution says. i've signed bills to increase the charters, double the charters for public charter schools but they're public schools. we have to make sure our public schools in illinois are second to none. i don't want to lose a generation of children. i don't want any state to out-educate illinois. when all is said and done, it's about making sure we invest in education. i want to invest in education and i have the courage to go to the people of illinois and say we have need of more revenue for schools, so we don't have high property taxes, so we don't have overcrowded classrooms, so we have enough teachers accountable to get the job done for the students. my opponent wants to slash the education budget of our state by $1.26 billion that will cause

havoc for the school children, cause a loss of thousands of jobs in illinois. jobs follow brain power, there's no other way. we must invest in education if we're going to be a strong state economically and every other way. >> final question, before we get to closing remarks. for both of you, do you believe that debates like this one are important for the voters to learn your positions on issues? and if so, why is this debate this morning one of only three public debates to which you have agreed? >> i've agreed to about 10 debates. i hope my friend, senator brady, shows up at all the debates. we want to debate everywhere. i believe in the nixon-kennedy debates and they were good for the country. the douglas-lincoln debates were good foriour state and our country and that's the best way for most people to get the information they need about who will be their governor.

my opponent says he's a homebuilder but who would buy a home from someone without seeing the blueprint. we've gone through this debate without seeing any specifics from senator brady about what he would do with the budget. i'm honest and direct. i've laid out our budget, we need revenue for education. i'm going to fight hard for that. if i'm elected on november 2, we will get more money for our schools so we'll have a good state that's strong when it comes to jobs. >> you're honest and direct. your budget leaves us with a $2 to $3 billion surplus and still leaves $6 billion in unpaid bills according to your own numbers. i think debates are important. this is a great forum and we've had trouble getting governor quinn to debate in elmhurst and other places around the state. we'll have access to forums around this state because it's

important that people know their choices when it comes to election. our state is struggling. we have deep problems in the state. we need to define the differences between governor quinn's kicking the can down the road and what i think is a blueprint for illinois. we've laid out the blueprint. we said we have to trim state spending to our needs. we have to build revenues into our budget to pay back the backlog of unpaid bills so we don't bankrupt the state's deficit with debt that on the bs of the taxpayers. >> i want to ask all of us here to recognize the harwork -- hard work done by everyone who helped set up this debate. [applause]

this activity, as you can see from the turnout, has been open to all members of the illinois community. if you are a member, it's great to have you back in the club house. if you are new to the union league club, this is a terrific introduction to the kind of things we do. you will find a flier outside about an upcoming violence prevention panel taking place in october. i commend it to your attention and we hope you will attend that activity here or some of our other public programming. it's great to have you here with us this morning. now i'm going to ask the candidates, a test to see how honest they really are. which of you was supposed to go first in the closing round? correct. and you've got two minutes to do it. state senator bill brady.

>> our state is struggling with difficulty with a cloud of corruption in front of us. there are two issues that are important. we've got to turn the page and provide a clean break from the secrecy of our government. governor quinn's administration has continued the secret release programs, secret pay raises, secret tax increases, a secret deal with the state's largest public sector union. when we negotiated a bypartisan agreement on how we were going to maximize the use of mccormack place, we find that governor quinn accepts a large contribution from one of the unions opposing it and vetoes the legislation. thank goodness we overrode that veto and within three weeks we signed $1 billion from sales from mccormack place, enhancing economic viability. we also have a state that is deep in deficit and debt. you can believe in governor quinn's tax, borrow and spend

policies will work to prosperity. i don't think so. the successful states in the nation realize that taxing, borrowing and spending doesn't equal prosperity. i would redefine government without tax increases. ladies and gentlemen, the future of our state depends on this election. i'm here today to share my ideas with you and ask for your support as we move our state to the forefront of this economic recovery for our children and grandchildren. thank you and god bless you all. >> governor quinn? >> thank you for listening. i really appreciate everyone's attention. i think it's important to have a governor who doesn't make pie-in-the-sky promises but someone with a record of accomplishment, a record of doing things, a record, not of promising, but a record of getting the job done in the toughest time we've had in illinois. we had an integrity crisis,

we've passed landmark ethics laws. my running mate, sheila simon, and i will enforce those ethics laws and make sure the people of illinois have an honest government. that's the kind of government the people want. two governors before me, one's in jail, one's in court. we also believe in taking on budget problems honestly, not with a fake plan that doesn't involve balancing the budget, but will increase the budget deficit. what we have to have is a governor who can cut the budget as i have by over $3 billion but still maintain investment in education, healthcare, public safety and helping our veterans. and i think our veterans are a model to me. they work hard, they take on every challenge, they never complain, they understand it's all about the future. all of us as adults and parents, we have to make sacrifices today

to help our kids' future. that's what america's all about. that's what illinois is all about. there will always be fast-talking politicians who tell you what they think you want to hear but don't tell you what you need to know. i want to be a politician, governor of illinois, who tells the truth before and after the election. i've done that every day since i was sworn in on january 29 of this year. our economy is recovering, we have a long way to go. i understand how hard it is to get people back to work, but i've been doing it, one by one, day by day, getting people in illinois a job. yesterday, we saved 26,000 jobs for hard-working people in illinois, people who live from paycheck to paycheck. that's what i'm about, fighting for everyday people, consumers, taxpayers, workers, veterans. they need a governor with a heart that cares about them. i've done that and i'll roll up my sleeves today and every day

as long as i'm economy to get to the mission of getting our economy back on track and making the will of the people the law of the land. >> ladies and gentlemen, let's show our appreciation for our candidates. thank you very much. [captions performed by national captioning institute] [captions copyright national cable satellite corp. 2009] >> our coverage of campaign 2010 continues in a few moments with a look at democrats' industry with debbie wasserman schultz. in about 40 minutes, it's a debate between new hampshire's second house district

candidates. former republican congressman charlie bess and democrat ann mclean custer. after that, the debate in connecticut between the candidates for governor, republican tom foley and democrat dan milloy. later, the governors association news conference on this year's election. a couple of live events to announce for tomorrow. british prime minister david cameron speaks to the conservative party conference on c-span 2.

>> up next, a look at the democrats' election strategy with florida representative debbie wasserman schultz. she is a vice chair of the democratic national committee and chief house deputy whip. this is 40 minutes. >> we welcome back to the table representative debbie wasserman schultz, democrat of florida. being here. >> thankve you. >> a few weeks before the midterm elections, it's getting

busy. >> 27ti days. >> you're in town to do what this morning? >> doing some meetings and trying to pump folks up here briefly on the election. >> there are a lot of polls out this morning. front page of the "washington post," g.o.p. retains edge as election nears. this still shows that republicans have about a six-point edge, 49% to 43% in likely voters, who they favor ih the november elections. what's your reaction to that? >> that's the generic ballot and we all need to understand and remember that generic members oe congress are not on thet baltimore. you have real human beings who have been serving their districts and working hard and i'm confident that democrats will hold the majority because this election is a choice. it's a choice between thee. policies of the past backsliding towards the bush era, focusing once again on tax breaks for the wealthiest few as opposed to the

small businesses and middle t class folks, or focusing on deficit reduction and making sure that we don't spendki ourselves into oblivion, drive the economy over a cliff as the republicans did. they have repeatedly said they want to return to the same agenda. so our members are talking about that and have been serving their districts well. >> you predict that the house will stay in democratic hands? >>e yes. >>ay as vice chair of the democratic national committee, what's your prediction of how it looks?u what do you see? >> as any majority does after the president's election, we're facing an uphill climb to start with. and we're fighting our way through a recovery that is people would like. we're definitely facing an uphill climb and i think democrats will lose seats. the republicansni need to win 39 seats.li

they really probably need to win 35 or 36 seats because we have some seats we will take fromak them so ultimately i think we shrink back closer to our 2006 majority. >> which was at that point? >> around 15 seats, give or taka a few. but i think we'll be around that point. >> new poll out this morning front page of "u.s.a. today" saying that g.o.p. voters are more fired up, they have huge enthusiasm advantage, republicans do, heading into november. representative john john boehned that democrats will not show up because they feel betrayed by the leadership on capitol hill. >> i think he's engaging in w wishful thinking.sa that's what he said leading up the election. the -- and it didn't happen, we

beat them by eight points. even going into 8:00 on that election night, mr. boehner was still predicting a victory for their candidate and it didn't happen because we have a ground and field operation second to none.we we know how to turn out our voters. the d.n.c. had a record month in september, $16 million, givingat us resources to put into more of the midterm elections that are critical, vulnerable seats. >> of w the $16 million, top races, can you give us your 5ou top races you're going to put that money toward? >> there are 43 front-line members plus a variety of other members that are in difficult elections.re it's hard to pin down these five are the key five, because our members actually have sustained a really aggressive pace, and if

you look at this same point in previous election cycles, depending on who was in theth majority, was always abandoning races and giving up on members that were supposedly lost and wt haven't been in a position toido that yet because our members are on the upswing. but the numbers are showing that democrats are waking up, they'rs realizing what the stakes are and quite frankly, independents are, as well. >> the vice president said, recently that the democratic base, the liberals, need to stod whining and look at what the white house and congress have c passed. are you concerned that he's picking a fight with the base weeks before the election? >> no. i've spent a lot of time among my colleagues and spent time with i the progressive base and

the base is really solid. a lot. of people who are progressive -- i'm a progressive, but a lot of folks are concerned that they want to change faster. we're tryingha to get across to them, look, rome wasn't built in a day. we accomplished a significant amount, landmark healthcare reform, finally getting a handle on wall street and making surema the fox wasn't guarding the hens house, getting a handle on deficit reductions. so we're trying to calm down the base, ask them to be more patient and talking to them about the stark contrast and choices on election day. >> what will you be doing leading up to the election? >> i'm running for re-election myself so i'll be spending timei in my congressional district. i just spent saturday afternoon walking door to door, talking to seniors and young families, but also spending time across the country helping colleagues in

their congressional districts, as well. >> i want to get your thoughts on how expensive this midterm is. i saw the latest numbers from, i think they were from august, for how much you've raised yourself. you'veou raised $1.5 million. >> i think so. >> you are running for re-election but it looks like to win prettyu handily and you haven't had a very strong competitor. why is it that someone like you who runs in a democratic district needs to raise thatem much money and are you then turning around and doling it out torn more vulnerable colleagues? >> i've been in office 18 years. i'm running for the 10th time for a legislative office, and i have a healthy respect for my constituents who are voters who can take you out just like theyy put you in. so you never take them for granted. y if i'm on the ballot, i'm running a full-blown campaign and making sure my constituents know what it is i've been fighting hard for them to do onn their behalf. but that having know been said,

my constituents care deeply about the direction the country- is moving in so they support me moving around the country to make sure we can implement an agenda they care about so remaining in the majority is something that concerns them, as well, and that allows me to be more effective. i've made plenty of contributions from my account to colleagues. >> the bush tax cuts, big debate lastig week.ng the "financial times" saying that thewn stalemate over that, having no vote, threatens to t stall the u.s. economy, that economists saying not having anc vote at all could be a real c threat to what's happening in our economy and it says -- "obama's promise to end tax cuts for the rich unraveled," saying that mr. obama's plea went unheard, depriving democrats of

a talking point regardings republicans. democrats want to exclude the top 2%. this obvious conclusion is not not -- is that she did notd believe she could get a large enoughts majority of democrats e vote the way she wanted. >> the senate, the senate republicans in particular, but with their republican colleagues inrt the house, as well, they dd hold the middle class tax cuts hostage. they refused, in the senate, tog support at least making sure that we could make the middle class tax cuts permanent. we knew that was not something that would happen in the senatem mitch mcconnell made it very clear. he insisted on tax cuts for the held the middle class tax cuts hostage. it would have been a contentious debate. to spend time battling over whether we would extend the tax cuts for the wealthiest few in

the house for nothing, essentially, delaying it for a few weeks for us made more sense and that's a lot of heavy breathing in the "financial times" for them to suggest that the recovery is going to be delayed for a few weeks' delay literally until the lame duck when we have an opportunity to be more deliberative and take tax cuts up thoughtfully. i think that's hyperbole. >> you also serve as deputy whip for the leadership in the house. what do you think the options will be on the floor regarding the cuts? >> what will most likely be on the floor in the house that we will extend permanently tax cuts for the middle class and working families and small businesses., we've given 98% of americans a tax break. we've given 97% of small businesses a tax break and we want to be sure those tax cuts are permanent. the extension of the tax cuts for millionaires and billionaires, some of whom

pocket $100,000 individuallyor from the extension of those taxf cuts, is fiscally irresponsible, adding $700 billion to the deficit. the republicans talk out of both sides of their face, talking about spending and deficitey reductions suddenly when it was them that changed a $5.6 trillion surplus to a $1.3 trillion deficit in fiscal year 2009. for them to suddenly have found religion on deficit reduction and spending is a littlen disingenuous. >> but the c.b.o. said that extending the tax cuts for theen middle class and permanently does a lot to the deficit andpe you can't sustain it. >> yeah.u overall it adds a huge amount to the deficit, but if you're going to take a fiscal hit like that on those tax breaks, we should at least make sure we're providing tax breaks to those individuals that we know willld

take that windfall from that tax break and put it right back into the economy. the wealthiest 2% of thepu americans -- we're talking about income over $250,000, which gets lost in it debate very often.r we're not suggesting that we take away completely the tax breaks for people making over $250, just the income they earn over 250 and quite frankly, those individuals aren't taking the t windfall and putting it bk into the economy, but back into their fat investment portfolios. >> on the republican line, gene inve california, you're on the air.l. caller: it's not the government study. you can't say it cost the government money. it's the people's money. the reason i called is you mentioned it's not a generic ballotmo but an individual race. we have a good example of that in california where there's nothing but negative ads by

boxer. you said we would do opposition research on candidates and maked races on individual personal attacks. i'm telling you, it's not going to work because if you promise to cut taxes and spending, i'd vote to you. >> congresswoman, do you have a response? >> not really. i think we're making sure our members are pointing out across the country the contrast between the people who are asking for their vote and who are suggesting that at this time person, like barbara boxer, who is already in the united states senate, fighting hard on behalf ofea her constituents in california, we need to compare the records. and what a lot of people describe as negative campaigning is really comparing records and statements candidates have made. but barbara boxer has a phenomenal record and is running on that record. i've debated carly fiorina, her

opponent. she's running an equally negative campaign and has been from day one. >> going to louisville, kentucky, mary, democratic line. caller: good morning. i am a democrat and will be voting for the democrats in novemberra and i'm urging all democrats to get out and vote because if people had voted for al gore, we wouldn't have been in this situation because we would never have had george bush. but anyway, i want to thank you for healthcare. i'm one of those people who, couldn't get coverage because i'm ayo cancer survivor. >> me, too. >>. caller: so keep up the good work. please defeat these republican tea parties. >> mary, are you hearing from a democratic candidates in your state on the healthcare bill and they saying? >> tim conway, i'm voting for tim conway because i have powell

here who is just out of his gourd. i mean, he wants to put a $2,000 copay on medicare. he wants to fight the civil war all over again. >>ue mary, are you hearing fromw mr. conway about healthcare? caller: i am hearing from tim conway about healthcare and different things that the democrats have done, but they need to be more vocal on their m agendas because they have done some good things. i mean, they corralled wall street. please,l ms. wasserman, would u please tell them to talk about what the republicans have voted no on, like you're trying to get a bill through about the outsourcing. >> i think she's referring to jack conway. but the issue of whether or not these candidates both on the house and senate side are

running on healthcare. we see a lot of them not wanting to mention the healthcare bill. >> i've been in a lot districts already and have many left to go and i've consistently heard our members talk about healthcare reform, talk about the major record of accomplishments on tax breaks for the middle class andf for small businesses, on wall street reform, on the recovery act, on the fact that before president obama took office the economy was bleeding 750,000 jobs a mont and now we're addinw 100,000 jobs in the private sector per month, 13 straight months of growth in the manufacturing sector and consecutive growth in g.d.p. we have made significant progress and rescuing a bit. i understand her angst. there are some members that ares prioritizing various issues in their districts and talking to

their constituents about what they know they want to hear from their member of congress and that's why it's important to highlight the real importance of what we can focus on leading up to election day. the generic ballot, you know, that generally compares people's sentiments r to d making sure we look at the race-by-race polling which has been moving in the democratic direction even in races where a few months ago the democrat was down considerably. now you have a lot of our races that the numbers have turned ant the democrat is now up again. host: we'll go on to clinton, missouri. larry, independent line. go ahead. >> good morning. it's not a wonderful morning. we have obama-care, capping tax that the house ofwe representatives passed and believe me, that will break thi country. t you folks sit back. i'm not a republican or a democrat. but believe me, this year, this

old independent is going to vote republican now. i was willing to give the president a break when he started by giving him at least an opportunity, and you guys, the same way, but now all i see is you want to break our country. you want to bring us down. and it was several years ago george soros said he would own the democratic party and he does now. you and all the rest of you guys and you can call me whatever yot want. i'm 72 years old. i've been around this country for a long time and i have never,th ever, ever seen thingss bad as they are or could be. host: we got your point. let me ask you, have you voted for democrats h in the past? which ones? did you vote for clinton? caller: i voted for harry truman who said the buck stops here. the deficit is just

astronommical as we speak. host: how do you track thepo independent voter like that? >> i'm not sure that the caller there was a true independent. it sounds like he hasn't voted for a democrat since hardware truman. the true independent voter is someone that cares about the deficit, cares about the economy. we've been focusing on talking to our constituents about the results that we've delivered for them like i just referenced in terms of the swing from the job losses. if you look at this year, we'vea created about 783,000 private sector jobs this year already. that actually is more jobss created in just this one year than the entire bush presidency. there are no net new jobs that were created during the bush presidency. host: how do you get that message out when people see the unemployment rate above 8%, which president obama talked

about when y he passed the stimulus, when he pushed the stimulus bill, unemployment will be below 8% if you approve this legislation. it's not. >> no, it isn't. it was probably not a good idea to pin a bill and tie it to a specific number in the drop of the unemployment rate. but there's no question that we have made significant progress and now we are on the upswing,re and the way we talk about it is simply through demonstrating the results, and also recognizing rg that people still have a lot of angst. in my state, the unemployment rate is higher than that, people are still facing foreclosures. we're talking about the efforts we've made on their behalf andbo drawing a contrast and showing constituents what the choice is on election day and they're responding. while we still face the potential forel significant losses, i believe we'll hold tha majority because if you look -- we'll refer to generic polling

that's been out there. democrats are the ones that voters trust to continue to turt the economy around, to create jobs and focus on the middle class and working families. so there's a lot more confidence in us to continue to make those things a priority, and that's what's going to drive voters to the polls on november 2. host: warner robins, georgia, on the republican line. go ahead. caller: i'd like to ask, she said a few minutes ago, that the democrats have finally woken up. why were they asleep? that's why we're in the messoc we're in now. you should set your alarm clocku because you will be beaten. host: why are democrats asleep? >> i think there was an undercurrent of angst among democrats who very much wanted us to pass in rapid fire succession every single thing on the agenda. and so some of our more

progressive voters have had angst so over the fact that immigration reform wasn't passd and the fact that we still needs to repeal "don't ask don't tell" and there's concern rightfully so about the fact that those things haven't gotten done yet. but the more significant reforms, the public option, a lost democratic voters were concerned about that. v those are all still things that immigration reform, repealing "don't ask don't tell," refining healthcare reform where there obviously will be changes we need to make. those are still things that down the road we need to be able to focus on but as we crystallize what's at stake here, getting b closer to november 2, our democratic voters are realizing that they don't want to elect candidates to congress on the extreme right-wing fringe of the republican party, they don't want to have people focus on o

priorities like repealing the 14th amendment and getting rid of social security as we know it or medicare for that matter. so i think that the stakes are becoming very clear. host: we'll go to new york, henry, democratic line. good morning, henry. caller: good morning. ms. schultz, i'm an 80-year-old african-american man, and i want to ask you one thing, why y'all don't go after boehner. you have a man down there in ohio running against him and he was on tv last night saying y'all don't help him? >> if you're following the elections closely, which it sounds like you are, we have a lot ofre races in play, i mean,a lot. we have 43 members in our fronth line program which i'm responsible for at the

democratic congressional campaign committee and we need to protect those members to preserve the democratic majority so weai can continue to turn the country around in a new direction and create jobs. we ask candidates to prove themselves and make sure they have a certain amount of support they generate on their own. i haven't looked closely at mr. boehner's opponent, but we have so many races on the playing field, our first priority is to protect our incumbents and then look at open republican seats and incumbent republicans that we can try to recruit a strong candidate and elect a democrat. that's what we've been trying do and it spreads our resources very thin. so i haven't been involved in any decisions on mr. boehner's raceve but i heard president oba take it to mr. boehner pretty good last week. so i think getting into the politics of personality is probably not a good idea.

but challenging them on their really wrong-headed ideas is really what we're focusing on. host: lou in wichita, kansas, from the republican line. you're on the air with debbie wasserman schultz. go ahead. caller: good morning. ms. schultz, i have a question for you and a comment. every time i hear you guys speak about the failed bush policies, isn't it true that the democrats have held the super majority for the last three years? t so when you talk about the failed bush policies, wouldn't it be -- isn't that disingenuous because it's actually a failed policy that came out of washington? i mean, you guys have held a p super majority.gt bush couldn't have passed anything without you guys sending it to him. >> we don't have a super majority. that's not the case. we have been in the majority since 2006. when president bush was still in the majority, obviously, when you have a divided government

like that, either the executive branch gets everything they want so we weren't able to steamroll the president. in the last couple of years, we have had the majority but because of the unfortunate way that the republicans haveav conducted themselves and used procedural motions and the threat of filibuster to require every single bill to get 60 votes, they've essentiallyge brought legislation almost to at screeching halt and refused ton be cooperative. the president has reached across the aisle repeatedly, tried to get the republicans in the senate to work with us and come up with bypartisan compromise. they've been more interested on victory on election day andes regaining power so they've had no interest in that unfortunately. host: governor mansion in west virginia running for robert byrd seat. the editorial in the "wall street journal" says that a mansion spokesperson tells the

"wall street journal" that there are several sections of the healthcare bill he would now vote to repeal, including funding for abortions. he believes people's personal responsibility and healthcare choices should not be taken away by overreaching regulations. the "wall street journal" says that sounds like the whole of obama-care that, mr. manchin would vote with republicans to repeal the healthcare bill. >> repeal of the healthcare bill, no matter who's in favor of it, isn't going to happen and doesn't make sense. any piece of legislation that wi pass here in washington certainly isn't stamped with perfection. there's always room for improvement.ti the two provisions that mr. manchin is talking about, governor manchin is talking about, i don't agree with his characterization, but he's entitled to his opinion. what theut majority of americani are pleased with is that we have finally made sure that we took the insurance industry out of

the driver's seat when it came to healthcare decisions. t to me, as a breast cancer survivor and it's breast cancer awareness month now that it's october, i am thrilled thattlast thursday, september 23, we finally enacted the patient's bill of rights allowed for children with pre-existing conditions, prohibited them from being dropped or denied coverage from insurance companies. young adults until their 26thre birthday can remain on their parents' insurance, made sure we have an appeal process when an insurance company tries to deny someone the benefits they're payingld for. so we welcome that debate on whether or not the healthcare reform legislation should bee repealed and essentially i think we dare the republicans to proceed with that because as people have these benefits kicking in and for seniors, i might add, the closing of the donut hole which was an outrageous provision in their prescription drug bill, we'll see which way the debate goes.

>> east lake, ohio, jackie, independent line.e caller: good morning, debbie. go for it. i'm an independent. i voted for their bush, the first time around, and then when the wars started, i started to have second thoughts. he doubled the deficit. g the wars are going to cost us well over $3 trillion by the time everything kicks in with taking care of all the young me3 that are coming back maimed and in very bad shape.f the other thing is, i can't understand and i wish the democrats would really pound the republicans on this, pardon me,u i'm nervous. >> that's okay. caller: demint held up a vote h for our military. he kept. it from going to the floor. >> which vote was that?

caller: the last military vote that came up and he -- host: defense authorization bill you're talking about, jackie? caller: yeah, right. then mr. coburn is holding up our money that we've allottei for pay because he doesn't like the fact that somebody's going to have to take the job and be paid for the job of putting the money out. people need to know these things, that these senators are acting like t gods, and holding e people in this country hostage. >> speaking of the house member, i couldn't agree with her more on the way she characterized the senate.e it is baffling to me and baffling, i think, to most americans that, one senator could put a stranglehold on ae piece of legislation that thea majority of senators support, and that's the way, you know, that the republicans have

conducted themselves. they've, instead of pursuing the founding fathers' vision of majority rules, they have changed the procedural rules and essentially made it so that 60 r votes is required to do anything and that's irresponsible. host: when democrats were in tho minority in the senate, they did the same thing. >> we certainly did not do the same thing.gu we did not set the system up so that every single bill that passes needs 60 votes.bi they have filibustered every bill, every major piece of legislation, and we didn'tst even come close to doing that. the filibuster has its purpose. there are times when using it makes sense. but when you're using it to essentially stop the president'b agenda in its tracks at every step, that's irresponsible and t that's, again, something i think that we're talking about leading up to election day. host: atlanta, georgia, ron, on the republican line. good morning. caller: good morning. ms. schultz, it's out of the

question to continue telling untruths like the bush era did not create any jobs at all whenl it created over three million and it would be really nice to go back to the 4.6% unemploymenh rate during the bush era. >>th i'm not sure where he got s numbers but there were no net new jobs created in the bushno administration and we ended up with a $1.3 trillion deficit. he inherited a $5.6 billion surplus because of the pay-as-you-go rules established during the clinton years, making sure that when we pass legislation, that we pay for it. the republicans allowed that to lapse under president bush. they wanted freedom to spendha money on two wars unpaid for, pass a prescription drug bill on seniors unpaid for, pass these trillions of dollars in tax cuts mostly for theta wealthiest few,

unpaid for. that put us in a situation where, at the end of the bushit presidency, $1.3 trillion p deficit, $11.5 trillion deficit projected out over the following 10 years. what we're trying do is rein in that irresponsible fiscal recklessness, make sure with the reestablishment of the pay-go rules that we have to, with very limited exceptions, pay for all, the legislation that we pass just like americans have to make sure that they pay for all their bills based on the income that they have. host: jericho, vermont. run is joining us on the democratic line. go ahead, ron. caller: good morning. i'd like to say, what i see in vermont are big companies like g.e. healthcare, general dynamics and goodrich, they're staying here and doing fairly well, but the small businesses

are leaving vermont in droves. carl seuss, which is a semiconductor oem, burton snowboards is leaving, k.p.a. printing is i leaving. all are o.e.m.s and very important. >> are they leaving for other states? f caller: the only companies i se: are revision eyewear, mobile systems. they're all connected militarily. i just see the regulationsy happening are keeping big business alive and small businesses don't have a chance because of thesi tighter regulations. >> i'm not sure whether he meant that they're leaving the state for other states or for otherme countries. but one of the really important distinctions that folks need to be aware of is that the republicans in the congress have repeatedly voted to keep a tax loophole open that allows any

businesses to ship jobs a overseas, it incentivizes the previous law until very renal incentivized them to ship jobs overseas. republicans voted to keep that loophole open and we closed it because we thought it was important that we focus on making it in america, that we focus on balanced regulation. we've been, particularly with policy, focusing on giving tax relief, significant tax relief, to small businesses. in just this year alone, weie passed legislation that included 16 different tax breaks for small businesses, tax breaks on their capital6 gains, complete tax break on capital gains for a small business, making sure they can haveal 100% deduction for those who are self-employed on their health insurance. there's a long list of those taf breaks because we wanted to play the lease for the small businesses because they are the

engine that will drive and continue to drive economic turnaround. host: an earlier caller mentioned george soros. he writes today in "financialth times" that america needs stimulus, that talk of off the ear measures is not the - austeer measures is not the conversation we should be having. if the economy were to falter, would you have to put more stimulus back on the table, aid to states, would you have to do more? >> ben bernanke, the chairman of the federal reserve, has been keeping a close eye on the direction the economy is going in and he's made a determination that at least the fed won't be getting involved in making adjustments unless he sees a significant downswing, which he has not seen yet. remember, just a couple of months ago, folks were talking about the potential for a double-dip reception. we've successfully avoided that

recession because of our balance between spending and making sure we have enough resources into the economy to create jobs and responsible tax-cutting policy that gets cash and keeps cash in the hands of small businesswn owners. we have to strike that balance with a focus on deficitce reduction so that we don't continue to send our economydu over the cliff that the republicans, under the bush administration, were sending us. host: so a combination of stimulus with long-term deficit reduction would be on the table if the economy were to falter again? >> i think we need to wait and see. we just passed the small business jobs tax act which put $30 billion into the hands of community banks to make sure they could get $300 billion in lending out to those small businesses because there's been a real issue with gettingt capital into the hands of small businesses and we think that legislation will have a huge impact particularly because of the tax cuts, the eightis additional tax breaks that went

to small businesses in that legislation. host: back to phone call, springfield, new jersey.ls david, republican line, go ahead.y. caller: hi, there. i want to get your comments about how you feel about global governance and how this redistribution of wealth is g going on and how europe is looking to bring down our style of living, to bring down how we willki be living in the future. i'm just really curious to see if you feel responsible for how you're being trapped into with obama to -- with his policies to bring down our standard of p living. i don't think you realize what's going on. host: you obviously disagree. tell us why. >> we certainly can't ignore the fact that we are in a global economy. i mean, there are essentially no laws economically now particularly because of the huge rise in technological capability. i think president obama has actually dramatically changed

the perception of the unitedi states of america. hisdr diplomatic outreach to countries across the globe, even those countries where previously we had a terrible relationship, he's made it a policy to reach out wherever we can. but if you looked at the perception of the united states during the bush administration, particularly when he used the go-it-alone strategy on the irag war, the perception of america t was really bad and we've recovered significantly and it'e made us so that we are able toav win agreement on sanctions froms china and russia against iran which president bush could never have won because of the approach he took to interacting with other world leaders. host: last phone call for you, old town, florida, diane, independent town. where's old town, florida?

caller: it's near gainesville. good morning, and thank you for c-span. i think the american people are politically naive and when president obama first came into office, if he had tim to blame on the bush administration and really gotten into the economics of what was left after he walked out the door, there wouldn't be this rage against obama because they would understand that he had nothing to work with, like an ex-wife that walks out the-w door with rock star credit cards. >> i think president obama was wise to avoid the blame game. we've been making sure that folks understand that head inherited the most significant set of problems of really any president in history and right as he began, the economy was about to careen off a cliff.cu

we had to rescue it from the jaws of a major depression, make sure we didn't lose two major automobile manufacturers in this country and he had to roll up his sleeves and get to work. the american people didn't want to hear finger pointing, but they wanted us to get the job done. now as we approach the election and talking about the result we brought to theha american peoplt we are also talking about wheree we were versus how far we've come and that's an importante point for folks to zero in on when they're deciding which candidates to i support on election day for congress, because the republican candidates, almost exclusively, want to return us to the policies under the bush administration that put us in a $1.3 trillion deficit, that sent our economy over a cliff, that made it so that there was almost no regulation of wall street and set up financial institutionsto that were so big that we had to rescue them, otherwise the economy would have gone off a

cliff and we would have had bread lines the likes of which we've never seen so making sure we draw that contrast and talk about our accomplishments is what we'll be doing for the next 27 days. host: congresswoman schultz, thank you for being here. [captions performed by national captioning institute] [captions copyright national cable satellite corp. 2009] >> c-span's content vehicles are traveling across the country as we look at some of the most hotly contested elections leading up to this year's midterm elections. >> how are you today? >> fine. >> why are you in washington? >> i'm not going. >> we honor you for your participation. next time around. i hope i'll see you again. thank you for your service. >> thank you for our firefighters, our police

officers, civil servants, our military, all of those that have been fighting the fight of freedom. we have another fight and that fight is in washington. >> the first thing we have to do is get the debt and the deficit under control, and that means stop spending and that's one of the first things i think we need to do. >> the 24th congressional district is a new district created after the 2000 census that includes a lot of volusia county. daytona beach is in volusia county and goes further south to titusville. it is one of the most government-dependent congressional districts in the united states because of the space program. with the winding down of the space program there's a lot of unemployment, not just because of a sour economy, you but it was really carved out for tom feeney, the first to win the race, at the time the district was created, he was the speaker of the state house, so had a key role in carving out this district, one designed for him

to win, yet, it's only barely a republican district and about 20% of the voters are independent. susan kausmus was able to win this district because of ethical problems tom feeney had. she was able to win that race. as a member of congress, she has taken a moderate stance. she did, in the end, vote for the obama healthcare plan. she voted against the house version of the plan. though, in the end, she voted in favor of the senate bill and therefore is responsible for its victory. she's been cagey in the way she campaigns on that. she doesn't defend the healthcare plan as a whole but selectively defends aspects of

the healthcare plan in order to not be associated with everything's that's happened in the obama in administration. her opponent is sandy adams who won a very contested republican party race where there was only a 2% difference between the three republican candidates runs. sandy adam, the one with the most political experience, herself somewhat moderate, as well. she comes from law enforcement and so she's used her background in law enforcement to present herself as a tough person, tough on crime, someone who is a pro military and has a strong presentation, self presentation as a candidate. . .

she is in a better position to deliver the goods in her district. [unintelligible]

>> that will be happening and it is under construction. it is going to be right here in central florida. >> it is a republican-leaning district. it leans barely republican but does lean that way. it has a history of republican representation. we have a conservative republican and to republicans he lost only because of ethical issues and not because of the change in political thinking on the part of the people in the district becoming more democratic. they think that this is their district and they want it back. >> c-span's local content vehicles are traveling the country as we look at some of the most closely contested house races leading up to this november's midterm elections. for more information on what the local content vehicles are up to

this election season, visit our web site, c-span.org/lcv. >> at our coverage of campaign 2010 continues in a few moments. the debate between new hampshire's 2nd district house candidates. in an hour, the debate in connecticut between the candidates for governor. republican tom foley and democrat dan lloyd. after that, the democratic governors' association's news conference on the election. later the candidates for governor in illinois. on of " washington journal" tomorrow morning, the senior editor of "slate" discusses the number of vacancies in the courts. we will have robert whitman, a member of the armed services

committee. "washington journal" is live on c-span every day at 7:00 a.m. eastern. the supreme court has started its new term. you can learn more about the nation's highest court with c- span's latest book, "the supreme court." reporters to cover the court and attorneys to argue cases there, relieved -- revealing unique insights about the court. it is also an evil. -- e-book. former republican congressman charlie bass and ann mclane kuster debate. charlie bass held the seat until he was defeated by air paul hodes. paul hodes is running for the u.s. senate.

>> from new hampshire public radio, this is the kennedy for on business -- can deform on business and the economy. -- candidate forum on business in the economy. in hello and welcome to that candidate forum on business in the economy. we're coming to you from studio d, and for the next hour we will hear from candidates for the 2nd congressional district discussing some of the most challenging economic issues of our time. we want to hear what they would do was members of congress rather than attack each other. let me introduce our canada's. former republican congressman charlie bass and democrat ann mclane kuster. here are our panelists. during the first half-hour forum, the panelists will ask questions, then we move on to an

exciting lightning round would brief and decisive answers to a series of issues. then i will take over and lead a discussion. questions came from our readers, listeners, and viewers. we tossed a coin to see it would go first. that goes to an mclane kuster. >> good morning and welcome, ms. kuster. this week the first round of regulations went into effect. how will this affect new hampshire's business's ability to provide health care for their employees? >> i want to help families right here in new hampshire. like a number of families who have been struggling with their health care costs, and as a member of the small business community working with new hampshire's businesses for the last 25 years, i know that the

double digit increases in premiums are simply unsustainable. the important law that went into effect this weekend was children being able to get their health insurance, having to do with older young people up to the age of 26 being able to stay on their family health insurance, and these are solutions that families needed. what i do not think they did overall was go far enough to control costs. i believe in the competitive model and the increase of competition to bring down costs. that would be a priority for me when i got the congress. it is clear that new hampshire businesses need help from the dramatic increases in premiums year after year after year. it is simply unsustainable. jean i would like to ask you --

i understand that the cost is going to be $88 billion over 10 years to fund this reform. you mentioned that competitive marketplace. if you could give me more about that, that would be helpful. and will businesses bear the burden of this $88 billion? >> the congressional budget office indicates that over time this would bring down the cost of health care and would help to lower our deficit. there provisions in the health care that are going to be extremely important for preventative care and keeping people well. that would dramatically lower costs. it is important for people have access to health insurance coverage so that they get the preventive care that they need. we're bearing the brunt of the dramatic increases were people

do not get the prevention and treatment to be well. i am actually encouraged by those developments in the new health care reform. i would go much further in terms of addressing the cost issue. the example that i would use is similar to public university systems, where if we have the public insurance option. i do not support the public provision of health care, but as to insurance, there should be an option similar to the way some people choose a public university, some people choose a private university. the health care bill that was passed relies on private health insurance. and in order to create competition to bring down the cost of health care, the reality is that it is too expensive and too much of a burden. >> i don't think you addressed the question directly on businesses. >> what the bill provides for is

support for small businesses to pay any type of increase in premium that they might have. i'm talking that this is -- bill did not go far enough in bringing down the cost. we need to have something along the lines of an option, of public insurance option that would increase competition and bring down costs. i would not have supported the bill in its current form and we need to address the cost issue. this bill addresses access but not cost. >> now mr. bass. >> i like to ask you the same question. how do you see the changes of the health care reform bill affecting businesses? >> 3 provisions that went into effect yesterday are supported on a bipartisan level and i would support them as well. unfortunately they are like icing on a sponge cake. the tougher stuff is coming later. as you mentioned in your follow-

up question, these new provisions tied in such a fashion that they go into effect before some of the other tax increases and other revenue bases go into effect over a period of years. the business community will bear the brunt of increase costs, which are very significant. it is unfortunate that the health care bill is structured in such a fashion so that parts of the bill that everyone supports take effect a month before an election day, when the taxes which are coming, certainly on the way for small businesses, will have a serious negative impact on our economy, and take place in a year in a half. for people like me yourself in short, i will not have -- people like me will not have any ability it all and will have to pay premiums that will $200 to

$400 higher. that does not help rejuvenate the economy in this state. >> thank you. could you be more specific that people will not be able to obtain insurance? >> ultimately we're all going to have the same insurance. she mentions that this will turn out to be a public option. the public option is in essence a choice of one. the bill actually says that if you choose to maintain your wrong policy, you can, but there are restrictions on how that policy can be administered, how high premiums can go, and so insurance companies will drop the individual coverage, forcing you into the exchange's or your premiums will go up. small businesses and individuals. >> thank you. >> we move on.

>> a lot of politicians there s -- are saying that allowing the bush tax cut to expire would hurt small businesses in new hampshire. do you agree with that or to merge >> i can give you an example of that. i served on the board of management at one of the northeast possible largest manufacturers of wood pellets -- pallets. the idea that a llc like ours would pass its profits on to the shareholders and expect just the tax rate for the owners of the company to go up, and it would take ultimately across the business community -- one person spoke to the manchester chamber

of commerce on wednesday. we like to see economic recovery sooner rather than later. taking $300 million out of this economy is a bad idea. these tax relief proposals were past 10 years ago. they were not supported for the most part by the entire democratic caucus. now they are for all of them except for this measure, which i believe frankly is political. i hope that we can work this out. what worries me the most is the people in washington who are going to allow these taxes -- right now it is delayed until after the election. whole thing is going to expire. it will cost new hampshire families and business and average of $1,700 a year. let's get beyond the political rhetoric of so-called tax cuts for the rich and talk about how

it impacts small businesses in this state, how it impacts people where the profits flow through the owners. let's talk about the real economy and get off of this political applause line, election-year rhetoric. >> what would it cost so much money a? >> they believed that they have done the actuarial work, i assume, and the revenue created for the federal government by cutting that part of the tax cut proposal would take $300 million out of the new hampshire economy. either from individuals or businesses. for the most part or in large part, these tax revenues flow through corporations and limited liability corporation. the impact is going to lead in

many instances on jobs and the ability to expand, and the ability to get out of this economic recession quickly. in general, i do not think you should be cutting taxes. >> a quick question for you. the democrats think of just increasing the tax on the wealthiest individuals. would it only fall on a very tiny slice of our population? it is not small businesses go much, but individuals. explain more the effect on businesses specifically. to many small businesses in new hampshire are known as corporations where the profits flow through to the individual. it the business has more than $250,000 in profits, that flows through the individual and the individual tax rate is affected by that. not only that, the company

itself would have to provide more taxes to pay these taxes, because they end up paying the money will be in and there would be less revenue for these companies to have, to create employment, and new hampshire is a small business state. the effect here in new hampshire would be far greater than it would be elsewhere in the nation. >> we will give you a chance to respond to that. >> should the bush tax cuts expire? >> i cannot disagree more with charlie bass and this is you. he has been in washington for 12 years. part of this is politics as usual. we need to get onto a new approach. i agree with him that 65% of the workers in new hampshire are small businesses. but the truth of the matter is, this needs to be poured back into the company to create jobs. what we're talking about is the

creation of jobs. i would not focus on giving tax relief to millionaires who are taking the profits out of the businesses, as he explained in detail. those are profits. they are going into the pockets of the business owner. what i want the tax code to do is to incent small business owners to create jobs, the plow all these profits back into the company. i want to eliminate the capital gains tax for small businesses to create jobs, rather than a tax relief for the wealthiest among us. i want to focus tax relief on middle-class families. all across the state, one person lost his job because his job was outsourced to mexico or china. paper mills have closed, other companies have closed, thousands of people across our district

have lost their job and have no tax relief whatsoever. they do not even have a job to pay taxes. i would the fact is tax relief on the middle class families, not the millionaires, and i want to incent millionaires to create jobs. not on small business owners that want to take the money out of the business and put it in the wrong pocket. we need to close the tax loopholes that send jobs overseas, and investing companies right here in new hampshire. >> are you punishing those people who are bringing in more money corps sergeant not punishing all. everyone pays the taxes. i am not willing to borrow -- this is borrowed money, just so we understand, this is you and i contributing to tax relief for millionaires, borrowing that money, increasing our deficit, and putting a burden on future

generations. i am raising teenage sons. i do not want to pass on the irresponsible spending and the skyrocketing deficits from the bush era, on to my teenage sons. i want to be responsible about federal spending. federal spending includes borrowing money for tax relief for millionaires. i won a focus on creating jobs, using incentives for small businesses to create jobs right here at home. and that's why i like the capital gains tax which is more aligned with the creation of jobs and income tax, which is wealthier people getting wealthier and wealthier. this has to do but people putting it away for savings for future generations. >> the wellhead. >> mr. basse claimed it would

remove $300 million from the economy. judy and i don't understand that calculation at all. he is saying that those people would not be putting that money back into our economy to create jobs. they're taking it wherever it is -- wherever they are taking it and pocketing. i want to create jobs right here in our communities on main street. i have met people across this district, in claremont, thousands of jobs lost in the industries. all across the district. >> another question. >> ms. kuster, a recent study from the economic study institute found that new hampshire all 16,300 jobs to china, the highest percentage of any state in the country. analysts have cited that is because of current trade policy to china currency manipulation or that you hampshire is not a good place to do business. what do you see it as.

>> this is one of the primary issues of my campaign. i'd much in -- mentioned a couple of times. these are real people with real life whose lives have been hurt dramatically. in one of the house parties in nashua, i met a man had lost a job three times to companies that and move overseas. he has a resume where he cannot find a job in this economy. when charlie bass was in what washington, he voted in 2001 and 2004 for these tax loopholes that out source jobs. they compare the deduction of moving the jobs overseas and they do not have to pay taxes on their incomes. some companies pretend to pay taxes on their income, take a deduction, and then never pay those taxes.

there is also trade policies. he voted for most favored trade status for china. this caused thousands of jobs to be lost in new hampshire, the highest percentage of any other state in the country. i want to close those tax loopholes and investing companies that are right here in new hampshire, the small businesses that we're talking about, main street. we need to build more jobs here, clean energy cops, manufacturing jobs, then to be shipping jobs overseas to china. >> any other proposals on how to deal with the exodus of jobs? >> i am concerned about the most favored trade status for china. i feel very strongly that we need to in our foreign policy, work on this trade imbalance that we have. we are borrowing from china and we're not able to export. so many of our imports are

creating a dramatic trade imbalance. when i got a congress, how will clean up for the people here in new hampshire. >> the same question now for mr. bass. >> what you see is the reasons for new hampshire in the loss of jobs to china? >> let me set this straight. i am providing jobs for the north country. that is talk, this is wall. -- walk. we need tax relief, not election-year gimmicks. the job loss to china is unfortunate. we are borrowing money from china because we're spending so much money now, the deficit has exploded. and he talks about the voting for exploding deficits. the deficits i voted for our a firecracker. the ones that have big stick --

occurred since january 1 of last year are a neutron bomb. the chinese are the only people with the cash to buy our bonds and we need to have stricter trade sanctions on china. but most favored trade status for china means that china must abide by our rules. we want to get them into this rules system. i do not like the currency situation between the two countries. i think that should be ended and i know that that is occurring. the big issue here is that providing real jobs and not talking about rhetoric, we need to allow companies to accelerate depreciation on tax assessments. we need to cut the corporate income tax, eliminating small -- capital gains taxes on businesses do not create jobs, because capital gains do not occur until you sell the

business. the capital gains tax cut everyone else is going up on january 1. the real issue here is expanding huge tax relief measures, which democrats support 98 percent of -- 98% of. >> what would your -- what would be your approach to tackling the massive trade deficit with china? >> we have to reduce albert deficit. we have to make our companies more competitive on the task level with other companies around the world. i will not going to the history of that, but the fact is that our corporate tax rates are not competitive, and this is an issue that should be dealt with, not in an election year dialogue, but rather by both parties working together to figure out how to keep our companies here.

all companies have a fiduciary duty to shareholders to maximize the health of their business. if the u.s. government creates an environment which are companies 5 -- pay more taxes and others around the world, they cannot compete with others around the world. this calls for real change, that change that i will bring to washington next year. >> mr. basse, congress has been considering energy legislation and reducing greenhouse gases. it is called capt. trade, to eventually overall carbon emissions from businesses over time. now you oppose it. why did you change your mind? >> note change of mind. the cap and trade bill, waxman

and markey and obama and po elosi and reed, proposed, it had no relationship to the one i supported. the cap and trade bill that henry waxman and congressman markey proposed would raise taxes over $700 billion -- $794 billion on businesses over a 10- year period. the money goes into the federal government. it does not go to companies that are going to be clean energy producers, clean manufacturers. a lot the allocation goes to the oil industry. the democrats needed to get the oil state democratic votes in order to get this out of congress. it is sad that good environmental legislation has gotten such a bad name because of the waxman-markey bill.

the tax on businesses that produce carbon, not clear where the money is going to go, and i is one that has worked try to develop alternative energy technologies in this state, because i truly believe that new hampshire could be a place where alternative energy frieds and provides real jobs, and no working example of that is to have this -- and to have this government monstrosity attack these businesses, put the money into the till to be spent on other programs, it is really very sad and it will take awhile for an hour -- to work our way out of it. we need to have meaningful environmental legislation. it diversifies our energy resources in a way that we are not simply taxing businesses and sending money to the till in washington. >> said use of force some

environmental legislation. -- so you support some environmental legislation. judy the nation to start a debate on national renewable electric standards for our nation. the president began this debate back in the early 1970's when he talked about listening our dependence on foreign oil. the issue in america should be diversifying our energy resources and our energy consumption. we should do it by setting standards that balance the need for economic vitality and stability in this country, keeping the government's role at a minimum, yet at the same time, increasing the incentives that we can provide for electric generation. the bill was supported was an electric standard. it ought to be expanded to include formal as well. around here, we have a

significant thermal resources -- would fiver and so forth -- that can be used to replace heating oil for manufacturing. right now we're stuck in the debate on a bill that taxes companies, puts the money into the federal treasury, it does not provide a meaningful path to develop alternative energy resources. >> i like to turn to you know. >> what i want to do is put a price on carbon emissions. the whole time that congressman bass was in washington, 12 years, thousands of votes, some of the most difficult and worst impact on our community and society and on our globe had to do with his support for oil and gas industries. billions of dollars, tens of billions of dollars in subsidies to oil and gas for deregulating oil industries that led to the

environmental crisis in the gulf. what happened is all, over time we have an unbalanced energy portfolio. we want to be much more focused on renewable energies. our society has been paying the cost of propping up the oil and gas industry in all of these years. look where it has gotten us. we have a problem with the environment and our economy. i think new hampshire is primed for investing in renewable energy. i want to see that kind of investment in companies that are building new plants in the north country, putting up wind energy, solar panels, all these things taking tax incentives and encouragement and investment that will not float as long as we're propping up the oil and gas industry and paying the tough price that we all are as a society and our public health from the air pollution, and

certainly in terms of our global future for the rising emissions -- carbon calls into our planet. >> i know that you'd like to put a price on carbon. had you address the fears that it will mean higher electricity rates here in new hampshire, especially for businesses? >> i would support tax relief for the small businesses. so there is not a negative impact. my point is we are already paying the price for the subsidies to oil and gas. we are all of us part of our deficit, part of our tax relief flows to the oil and gas companies that are driving up the use of carbon. it makes us more dependent on foreign oil which is causing some of our global problems and our foreign-policy issues, getting us into wars. what i want to do is make sure that we level the playing field,

not at the price of small businesses. i support the credits for small businesses so there is not a negative impact. but i want to level the playing field so that we invest in renewable energies that has a better future and can create jobs right here in new hampshire. >> fasten your seat belts. we're going to the lightning round. this is where our panelists are asked a very straightforward question, and we hope that they can give this a quick and decisive answer. the last candidates have a little trouble with this. [laughter] to the candidate that can answer quickly and simply. >> to which canada it first? >> you can go to mr. kuster and mr. bass. >> according to recent u.s. d.a., job creation brown creation table -- should the

federal government subsidies high-speed internet service to the rural pockets of the state court charging an absolutely. it is critical for small business development and for young people getting into college. we do not want to have the digital divide between both parts of the country that had access and those that cannot. >> absolutely. i agree. and i plan to focus on the preservation of our existing infrastructure that is here in new hampshire. i am afraid it will go the way of the railroad if we stay depended on wireless and cellular and satellite. good internet is the key, especially in the northern counties of new hampshire, but we have to make sure that it is a public/private partnership. companies that are providing access to the area have the

necessary support. i would recommend reauthorization and review and reform of the universal service fund. >> lightning round, mr. bass. i do apologize. another lightning round question. to get president obama has proposed making the federal research and development tax credit permanent. good idea? >> absolutely. i support that. that is an important part of my plan to create jobs to agribusinesses themselves rather than mushing -- money from washington. making that tax credit permanent is a very high priority -- i say yes, and i think it was a brilliant suggestion by president obama. >> our next lightning round comes from dennis. >> mr. bass, which in minimum

wage be? >> i believe the best minimal wage is all paid paid by businesses that is profitable, that is growing, that exists in an economy where taxes are lower. i believe that minimum-wage created by government are not the kind of minimum wages that i want to see. i wish that everyone in america made more than the federal minimum wage. i believe the best way to go about doing that is to promote business development. i do not support increases in the minimum wage. >> could you give a dollar amount? >> i would keep it where it is now. >> i believe it is $7.50 right now. i think anyone would be hard pressed to raise a family and that figure. i support their wages and investing in jobs here in new hampshire. i would do everything i could to make sure we create good jobs and good wages.

>> any specific dollar amount? >> that would keep its $7.50. >> would you support legislation of guaranteed sick leave to employees chris a margin yes. >> i believe those decisions should be made in businesses. another effort on the part of a federal covered -- government to mandate how businesses are run and i would oppose that. judy lightning questions. >> miss kuster, named one federal tax you think should be eliminated. >> i would say i support keeping the research and development tax, but there are other businesses that are burdensome on business. >> i think that for least a temporary period of time, corporate taxes should be cut.

i think the depreciation schedule should be reduced by 50% for a limited period of time, so that we can get capital to grow businesses. >> any specific tax code to mark can you name names? >> having to do with taxes on businesses that keep them from creating good jobs. i do not have specifics in mind right now. i want to be sure to focus on businesses being able to create jobs and the tax code needs to incent the creation of jobs. >> mr. basse, name one tax that you think is fair? >> the definition of fair and appropriate is relevant. we are where we are today. in a period of economic stagnation, the worst thing we can possibly do is raise taxes.

whether they are fair or not is immaterial. what is important here is that be assured that businesses have taxes that are low enough so that they can employ people who make real salaries. >> is there one in particular that you think, ok, i do not mind paying that? >> i don't think that anybody thinks that a tax is either too high or too fair. the reality is that we have certain expenses that we have to meet the governor and we have to raise the money to do it. unfortunately right now, expenses are so far out of whack for what we're creating, it is hard to say what tax would be fair or not. the government expenses are so bad, we have to start from scratch. >> ms. kuster. >> i definitely think that we do not need tax relief for millionaires by borrowing money

from our children and grandchildren's future. mr. bass, should unemployment compensation be extended one more time? today know. i would vote to extended. every time that occurs, it is a reaffirmation of that the europe the stimulus bill. it is now 9.6% nationwide. >> new hampshire is under 6%, and i would strongly recommend extending unemployment benefits for those families that are unable to find new jobs. my focus will be a budget on creating new jobs and bringing unemployment down. >> should the retirement age for social security be reached for younger workers? >> i do not think it should be

raised beyond 67. i feel very strongly about this social security trust fund being strong. >> mr. bass, do you believe that it should be raise? judith know, i do not. i believe that republicans and democrats should work together to create and protect social security with a national commission that would bring this back to congress. >> you did pretty good job of being lightning fast. it's good to miss kuster for. >> congress and president obama of $40 billion bill for small businesses gaining easier credit. the you support it? >> i have had lots of conversations with local community banks. i want them to be able to lend

to businesses that can grow right here in new hampshire. >> this is another example of a potentially failed stimulus /t.a.r.p. program. where is the state? there's so much uncertainty in washington over taxes and deficits, and not have the federal government taking interest in small banks, the rules are going to be too strict or they are not strict enough and bad loans will be made to businesses. the results will be a failure. if we have a good business environment in the state and nation, we will not have to have these injections of taxpayer money to now banks. this is like stimulus #five or six or seven, and unemployment is still high. to end the problem has been the bailout of the big banks. congressman past vote for the debtor -- congressman bass voted

for the deficit bills. >> really quick. cheated everybody knows sitting here today that the collapse on wall street occurred on subprime mortgages, freddie mac and fannie mae, bad legislation passed before my time which led all these bomb project -- subprime mortgages be made in the first race first place. -- in the first place. >> we want to switch gears again. we will move to the long form discussion of our program. i will ask the candidates won all logic, philosophical question. we would get their thoughts. it is an open-ended discussion among the three of us. i'll turn to mr. bass first. what is the proper role of

government in the private sector? >> the government should protect america from threats domestically and abroad. it should provide assistance for those who are truly in need. i think that the government should make sure that we have good, properly monitored interstate commerce. i think the government should provide domestic protections for sectors across straight lines. as far as business is concerned, the federal government should stay out of business and people's pockets as much as it possibly can. government should also seek to live within its means. the impact of $1.5 trillion deficits has an effect on everybody. in general, laura, government's role should be kept to as low was possible. unfortunately within the last 10

months, that relationship has changed dramatically, and it is getting worse and worse every day. if we do not have a change in washington now, i do not know where america is going to be. the government will be bigger than the country itself. >> stay out of business is pockets, regulations? >> regulation is important and self regulation does not work. i believe in certain regulations in commerce. i believe in accountability and transparency in business transactions. what i try to avoid is the creation of your bureaucracies -- of new bureaucracies. a lot of industry in america is so heavily regulated that the regulators do not know how to administer the regulations. it is not only unfortunate for us domestically, but it has an impact on how we compete in countries around the world. and health care bill will affect

every business in the country, it will cost $110 billion. that is not a good role for government. >> i think congressman bass demonstrated with his votes over 12 years in congress exactly what approach it would take. deregulating wall street, that led to the collapse of our economy. deregulating oil and gas industries that led to the biggest environmental disaster of our lifetime. what i think the proper role of government is is to protect people, not businesses. congressman bass had been part of the problem as usual in washington. i don't think we would see anything different if we sent him back there. i am looking for a new approach to government that would put people's needs first over politics, they would look out for investors where they your saving -- whether you are saving for colleges or retirement. so that people do not have to

fear for their future. the work hard all of these many years. during my campaign, i have met families who have lost everything because of the greed that led to this collapse. i think we need the proper role of government, not over regulation on small businesses. i want to let small business thrived in the state. but smart reforms, smart regulations for wall street said that we do not have to fear that our future will not be secure. that is the proper role for government. judy people are fearful, all right. they are fearful lest the what has happened in wishing to -- over what is happening in washington of the last few months. trillion dollars deficits as far as the eye can see, taxes going up to%, the specter of inflation, the specter of a health care plan that knowing can understand. it will produce, not increase, competition. people are scared and that is

the fundamental reason why this economy hasn't turned around -- uncertainty. how many times that people told me that they are uncertain and worried? they are worried because of the obama administration in washington is on a new approach -- you are right. it is a new approach in america is running for the hills. we need to change in january. said, we do hear from business owners saying that they are afraid to invest, the government is too involved, i am a friend of health care bill, and afraid of new regulations, i am deaafrd of deficits. there's a fear about how the government. did this all started with president bush and the 12 years that congressman bass of voted.

how would it be any different if we sent him back there? we need to get this economy moving again. president bush took office and we were in a surplus. when it was handed over to president obama, we were dramatically in debt, losing 800,000 jobs every month. these to the problems that the republicans and congressman bass left our economy in, a shambles. to send them back to washington is not going to turn this around. but we need to do is invest in business, invest in small business, that is where the jobs one will come from. invest in our infrastructure, modernize it, roads and bridges and highways that we need to invest in, broadband communication. create jobs here in new hampshire that are bringing down

our unemployment under 6% -- these are all the advances. but this was a catastrophic collapse of our economy. at the hands of president bush, and these were the years when congressman bass was in washington for voting for the skyrocketing deficits and what types of the regulation that did not protect consumers, did not protect families here in new hampshire. >> it's easy to blame things on george bush, dick cheney, and halliburton. those days are over. the reality of the exploding of the deficit went from $4 trillion to $8 trillion. unfortunately, we would have had more if the unfortunate events of september 11 had not occurred. the deficits that have been rung up by the democrats in the last

20 months are greater than the entire period that i was in congress. and for a democrat and a supporter of nancy pelosi and nancy -- and barack obama to suggest that the deficit has not happened in all -- the deficit that occurred in the last 20 months happen because of the prior administration, means that they are going the wrong way. let's try a different approach. i hope i have the chance to do that, come january. >> these to the people that drove the car right into the ditch. >> de you think voters will feel the way that mr. bass does? you've had the reins for two years. >> the bush administration, they

know the loss of jobs, 800,000 jobs per month, and we have created jobs. it takes a long time to pull out of this deficit that was created by this crisis. we were on the brink of the next total disaster in our economy. it was a total meltdown. the next great depression. and voters are very savvy, this i know from talking to voters for the past 15 months in every corner of this district. people understand these are challenging times. and for republicans who voted for the very policies that got us into this mess to think that we're going to hand back a key and just make glib responses that they are going to bring changes -- what kind of change? we know that they favored the special interests, they favor the large oil and gas companies, they favor those

parts of the financial services that caused all of these problems. the big banks. we need to make sure that the big banks pay back those bailouts in full. that is our money. that is our tax money. spend that here at a time. >> most of the big ones have paid that back. >> laura is right about that. no matter how many jobs you may have created, the unemployment rate in january of last year was 7.7% nationwide. now it is 9.6%. i know see how you can say you are creating jobs when the unemployment rate is going up. few had 20 munson made it better. the fact is that the actions they have taken was wrong. they increase the deficit, they may have saved jobs, but most of those jobs were not producing real goods and services for the economy. the result is that the recession is thumping along, and until we

have a change, until we revitalize the business community, and get people on payrolls that are making things that people buy and sell, and get money in their pockets to buy stuff, we will be right where we are today next year. >> so government's role in doing that? give me three things. >> speedup appreciation so that companies put money into new stuff. cut the corporate tax rate temporarily. maybe consider having a payroll tax holiday to stop these government bureaucracies and the $10 billion stimulus that the government runs. >> the clock is staring at me. three things the government could do to provide that. >> tax relief for small businesses to invest in capital, they can invest in new equipment. those of the ideas that are

being put forward by president obama. we need to give tax relief -- we do not need to give tax relief to millionaires. we need to give tax relief to families that are actually hurting. those of the steps i would take. >> thank you very much. we turn to the last segment now of our forum. i will go to my colleagues. this is the final panelist question. the candidates will have one minute to respond. >> but if you talk about cutting wasteful spending. mr. bass, what three programs would you suggest? rolling back the spending increases with the goal of getting it back to where they were 20 months ago. each appropriations subcommittee would be given the job of getting at least 50% of the money out of the budget right

away. secondly, i think that the congress ought to establish a spending reduction committee. that committee would be charged with the responsibility of pulling spending reduction ideas and bringing them to the floor of a house for a vote. so we can get the public reconnected with congress, saving money on the same level as spending and taxing. i believe that the first priority has to be to get this budget under control and get spending back to where it was. when the democrats to cover, we have had on average 50% increases in spending last year. that is unsupportable. absolutely unsupportable. that is where i would begin. >> give me the specifics on the programs. >> the appropriations committee has the responsibility for those programs. that would be a task for cutting were they see fit.

but they cannot take their appropriations up unless they are less than they were the previous year. indeed to have a freeze on non- defense, non-discretionary spending. >> the same question. judith congressman bass butter for thousands of different earmarks as he voted for deficits that went from $4 trillion to $8 trillion. how would in the multibillion- dollar subsidies to the oil and gas industries that congressman bass of voted for. we need a level playing field for renewable energy, to make us less dependent on foreign oil and to save the planet, so we could save billions of dollars there. congressman bass took a different pay increases and i would freeze congressional pay until we get that balance the budget. we need to do everything we can to get these deficits under

control. >> dennis, go ahead please. >> first to you, miss kuster. a question from someone who says that congress is like a third grader at recess. what is one business or economic issues that you would reach across the aisle to get your party to resolve? >> i could not agree more. i grew up in a bipartisan household. many people know that my family was republican, my mother was in the new hampshire's legislature, and i am proud of the heritage that i have. i've been a democrat my whole life. we had a real dialogue in our family about issues. i am used to listening