as we wait for this event to get started from outside of detroit, we will show you an event that took place earlier today in detroit. we heard from mitt romney talking about his economic plan, speaking of members of the detroit economic club. this administration is focused on the unemployment benefits. co-workers really want is a good job.

and rising wages. reforming the tax code is one of the quickest ways to achieve that kind of gold. i want to make an across-the- board 20% reduction in marginal -- marginal individual income- tax rates. [applause] by reducing the tax on the next dollar earned by all taxpayers, we encourage hard work, we encourage risk taking, we encourage productivity by allowing americans to keep more of what they earned. the businesses that pay taxes to individual income tax, they account for over half of all american workers. this kind of tax cut encourages

small business to hire, to raise wages, and small business is what pulls us out of recessions to get the economy going again. second, i will make our business taxation competitive globally. i bought reduce the corporate tax rate to 25%. we are the highest in the world and that has to end. let's get competitive again. [applause] i am also blind to make the research and development tax credit permanent -- i am also going to make the research and development tax credit permanent. i will end the repatriation tax. american companies who do business overseas will bring their profits back home. this recreate -- this rate. american company that has a division in china,

making china -- making cars in china, if they keep their profits in china and invest in china, there is no u.s. tax. if they bring the money home, we charge them up to 35%. that makes no sense. we have to and the repatriation attacks. it is estimated to be over $1 trillion that could create american jobs. i will get it done. [applause] i will maintain a 15% capital gains tax rate. that is the right course to keep our economy growing. i will eliminate the tax entirely for those with annual incomes below $200,000. those low tax rates encourage americans to save and to invest and it will encourage business investment and economic growth. finally, i will repeal the alternative minimum tax and a

polished the death tax. it is simply not fair. -- abolish the death tax. it is not fair. these changes i will not allowed to raise the deficit. stronger economic growth, spending cuts, and broaden the base will offset the reductions. americans will continue to enjoy the tax benefits the to favor important priorities, including home mortgages into a back -- home mortgages, charitable deductions, and savings. those who receive the greatest benefit from that 20 percent cuts are going to see the most significant limits in some of the deductions so we can keep a code that is progressive. these reforms will grow the economy. they will increase wages. they will grow jobs. let's get a tax policy that encourages growth and investment

and does not penalize people for being successful. [applause] let me mention something else. all of you who have experience in business are familiar with the balance sheet. the federal government does not publish a balance sheet. we have one. if we're going to get our fiscal house in order, we have to fix our national balance sheet. today, we face $62 trillion in unfunded promises in our entitlement programs. we talk a lot about the $15 trillion of deficit that has been piled up. it is that $62 trillion of unfunded promises that keeps most of us up at night. a few common-sense reforms will ensure we can make good on our promises to our seniors and we

could also save social security and medicare for the future generations. tax hikes are off the table. there will be no change for the people who are near retirement are currently retired. young girl generations to enter the system have to have a system that is strengthened -- yogurt generations to enter the system system that is strin strengthened. when it comes to medicare, tomorrow seniors will have a choice among insurance providers, including traditional medicare and with medicare part b, the private sector will also compete to offer insurance. they will provide coverage at all lowest possible price. seniors will receive government support to ensure they can afford the coverage. with medicare, like with social security, lower income seniors will still receive the most generous benefits.

we will gradually increase the medicare eligibility age by one month each year. the eligibility age is for both programs will be indexed to longevity so that they increase only as fast as life expectancy. those of the kinds of common- sense changes we have to have. we have to fix our balance sheet. we will have a balance sheet that is in balance and it is time to get that done. [applause] one more thing, my administration will make the hundreds of billions of dollars in cuts necessary to reduce spending to 20% of the economy by the end of my first term. i will cap it at that 20% level. without sacrificing our military superiority, i will balance the budget. there are three things i have to do to get that done. they're not easy.

first, i will cut programs. i will look at every single government program and ask this question -- is this program so critical that it is worth borrowing money from china to pay for it? i will start with the easiest cut of all. i will get rid of obamacare. [applause] it is a trillion dollar entitlement that we do not want and cannot afford. it is bad policy. thingslso going to cut that includes some subsidies a lot of people like. i will cut the subsidies for amtrak, funding for planned parenthood. we will cut things. part two, we will take a lot of federal programs and we will send them back to the states. i will send medicaid back to the

states. i will pass that program's rate of growth at inflation plus -- i will cap that program's rate of growth at inflation plus 1%. states are better able to perform these kinds of functions. once the economy is growing again, i believe we should return are spending level on these programs to the pre- recession levels and cap their rate of growth and give the states flexibility and control over their programs. taxpayers would save money and those who need the benefit of these programs will find there are more effective and efficient and responsive if they are run at the state level. there are such differences in the states. let states craft their own programs for their own poor. i want to extend conservative, small government philosophy across the end title social safety net for those that are in need of our help.

cut programs to balance the budget. number two, send programs back to states. the third thing to do is to make the government that remains more efficient. i will shrink the size of the federal work force. initially by 10%. and then i believe the pace of government workers with the pay that exists in the private sector. i do not think that public service should be paid more than the taxpayers are paying for them. this is a plan to get america back on track. we talked about tax policy, lowering tax rates to create growth. we talked about entitlement reform. we've spoken about deficit reduction by cutting spending, cutting programs.

i want to take a moment to think about michigan. what it takes to get michigan on track. that revolves in many respects to run the auto industry. for michigan to be strong and vital, the auto industry has to be growing and thriving. i hope we learned lessons from the experiences of the past. in my view, the industry got in trouble because uaw ask for too much. management gave too much. and the government cafe standards hurt domestic automakers have provided a benefit to some of the foreign automakers. the results of those missteps was a cost penalty per car of about $2,000. even the best designers and engineers in the world could not overcome that kind of cost disadvantage without the customer being able to tell. as a look forward, it is important that uaw not impair

the long-term future of the industry. cafe standards have to be worked out between government and private sector so they do not become burdensome. the companies, they have to invest in new technology and take advantage of the mass of new markets. the largest market of the world will be indonesia, brazil, china, and india. we should get the government out of general motors so that the future of that company is determined by the demands of the marketplace, not by the preferences of bureaucrats in washington. [applause] detroit should not just be the motor city of america. it has to be the motor city of the entire world. i want to make sure that happens. [applause] what i have described our economic plans that will strengthen america and

strengthen this again by making bold cuts in spending and common-sense reforms. we will make our government simpler, smaller, and smarter. through pro-growth policy, we will get on economy back on track and give our citizens back to work. taken together, the plan i am proposing represents the biggest fundamental change to the federal government in modern history. these are conservatives, pro- growth policies that will not only jump-start the economy, but they will stop the dangerous slide of this country into a society where values of entitlements are s -- are steamed hired and values of opportunity. we have to restore the promise of america. i know president obama will criticize my proposal. so be it. i believe the american people are ready for real leadership. i believe they deserve a bold

conservative plan for reform and growth. unlike the president, i have that kind of plan. i am not afraid to put it on the table. my plan for america requires leadership and calls for sacrifice. it does not require a leader to promise bigger and bigger benefits and something for nothing. it does not require a leader to promise bigger and bigger benefits and free stuff. it requires a leader to call for sacrifice. if i am elected president, i promise you this. we will restore america's promise. the future will be full of promise and prosperity. parents will not have to wonder if their children will have a better life. together, we can get our debt under control. weekend rain in the deficit. -- we cannot rein in the the deficit.

-- we can rein in the deficit. you will see in michigan with rising home values again. your kids will come out of college and find there are jobs there that are consistent with their skills. businesses will come here because of your on parallel the workforce, engineering skills, institutions of higher learning. michigan will be known as the engine of innovation. i will not promise it every day will be easy -- i will not promise that every day will be easy. every day will be on a track to getting things better and better. we will make america strong there again. to do that, i need your help. next tuesday, i will need your vote. that is part wind. if you want to make this election about restoring america's greatness, i hope you'll join me. this is a critical time for our country.

i love the foundation of this extraordinary land. i think it was spoken of and written by the founders of this country. they wrote the declaration of independence and they chose their words carefully. endowed by our creator. life, liberty, and the pursuit of happiness. that last phrase we gloss over in our minds. people would be free to pursue their path in life as they choose. they would not be limited by government or by the circumstances of their birth. because of these freedoms, our liberty and our right to choose our course in life, america became the place on the planet where people came with innovation and a pioneering spirit. that is what built this city and would build our state. hard workers that came to work

to build this extraordinary land. we have a president who is trying to transform america into something we would not recognize. i do not think that is the right course. i love what we are. i want to restore the principles that made this the hope of the earth. i want to restore freedom and a conviction that people pursuing their own path will build a better future. i ask for your help. that is what makes us of who we are. this is a critical time for america. we have to choose who we are. are we going to be a nationwide and governed by a massive government in washington? the government accounts for about 35% of our total economy. 35%. we're inches away from no longer being a free economy.

i want to get back to the american people to pursue their course in life. i love this country and i love what it stands for. i love the vision i have of the future. i am optimistic about the future. i am convinced that the american people will rise to the occasion. i believe despite the challenges we have, if we have a president that will tell the truth and live with integrity, who knows how to lead, and will call on the greatness of the american people, we will see michigan come back and we will see america come back and we will know that america will remain the hope of the earth. thank you so much. so good to be with you this morning. thank you. [applause]

thank you. >> governor, that was fabulous. thank you very much. there is a custom to ask a few questions. we have been provided with three from the audience. >> ok. >> china is a growing power. what should the united states due to nurture a strong -- >> we're going to break away from this event that took place earlier in detroit. we go live to lincoln park, michigan. just taking the podium, rick santorum. live coverage on c-span. >> i appreciate all the wonderful service work that the knights of columbus and dallas. -- does.

congratulations to all of you. i do not think i've ever seen and nights of columbus hall this bake. this is pretty impressive, i have to tell you. thank you for coming out on a friday night. on a beautiful winter friday night here in southeast michigan. it is a pleasure for me to be here. be in a place that is very similar to where i grew up. i grew up in western pennsylvania. in a manufacturing town. it is very much like the towns here in southeast michigan, where we had the kind of neighborhoods and values and opportunities for everyone. to be able to go off and go to work and work hard and have an incentive to work hard because there were great jobs. there were strong neighborhoods,

strong families. we had an opportunity to really build a great and strong community. and building a great and strong country. that is how america is unique and the world. america is a great country from the bottom up. all the different community organizations, they all sprung up because we believe in the idea of a free people and our ability to provide for ourselves and our families. that is the secret. that is the difference of america when it comes to what makes us successful. it is the secret sauce, if you will. it is the secret sauce to what makes america a unique country. it is so hard to replicate because america was built that way. we are a discovered country.

people forget how young we are. this young country was born in a very different fashion than all the other countries that go back to antiquity. when i go around and i talk to people all around the country, i talk about how important it is that we've remember who we are. what makes us great, what makes us different. our difference is what makes us exceptional in the world. what i have tried to do in this campaign, in spite of what always happens, people get worried about whether they will win and lose and they decide to try to throw mud and dirt and run a negative campaign. we have been going around this country from the days of the town hall meetings to appear in michigan. we have been talking about

ideas. we're talking about things that can reinvigorate and create that sparked again. the greatness of america, it is still here, it is still alive. [applause] ultimately, we have a government right now who does not believe in the things that made this country great. he has a very different model for how we will build a great society going forward. i want to share with you some ideas of what i would do. this campaign, as we have seen, can get off the ideas, off the vision, off of what the people in michigan are going to have to vote about on tuesday. i have done a few television and radio shows today. the last one i did, he said, i

am glen to talk to you about issues. not these -- i am going to talk to you about issues. things that people care about. what are you going to do as the next leader of this country? what are you going to do to make a difference in our lives? i thought i would share with you the time things -- the ten things i would do and focus on in the first 100 days i was in office. if we elect rick santorum, these are the things he will do to get this country turned around. that is the focus. that is what people are concerned about. we have not just 8.3% unemployment.

we also know we have a record number of people not looking for work. people are not participating in the market. that is at an all-time high. a lot of folks who are in the marketplace are not in the kinds of jobs that allow for advancement and allow for people to have those wages and benefits that can support a family can create that sense of optimism and hope. those are the things that people are concerned about. those are the things that are eating away at our optimism here in america. i want to talk about what we can do together to make things happen. obviously, the first and foremost, we have to do something to get this economy going. the first order of business, as a look at what is happening right now, we have to do something about energy prices. the price of gasoline in this

country is going up and it will not be going down any time soon. [applause] this is not just an economic issue. this is a national security issue. look at our involvement in the middle east right now. oil prices are going up and gasoline prices are going up because of the instability of the region from which we get so much of our energy. things are only going to get worse in the next few years, unfortunately. the last half a million barrels a day it will go offline within the next five or 10 years. we will not have enough production to keep the alaska pipeline flowing. if it gets under 350 million barrels a day, the pipeline stops. it slows down to the point where

it does not flow. as a result of that, they have to shut down production. half a million barrels a day that we will not have. mexico, but then the next five or 10 years, will be an energy importer. 2.5 million barrels from venezuela, all from areas of the country -- of the continent that can provide crude for our refineries for them to be able to produce a domestic supply to keep prices stable in the world. we will not have the production anymore. it is coming here to america. what is the alternative? bailout and did the opposite of what we did go out and do the opposite of what president obama is doing. i do not know how stupid he thinks america is. [applause]

blaming everybody but himself for policies that were intentional to drive up the cost of energy. remember when he was campaigning? they were talking about how we did higher prices for energy because they were concerned about man-made global warming. they had to do something about a man-made global warming. folks, look at any chart. when energy costs and energy availability is compromised, the standard of living goes down. the economy struggles. one of the great reasons we have been a great country is because we have that energy. look at detroit. imagine if we did not have the price of gasoline. what with this industry have been like if we did not have the availability of cheap gasoline for some years?

we produce it here. we were not afraid to produce it here because we know that after awhile, we would have the best environmental laws. we need to open up offshore, we need to open up alaska, we need to take the permiting and allow per metmits. i was just up the north dakota. north dakota has an area -- i brought it to the economic club. it is a piece of iraq. -- rock. they are getting oil out of a rock. it is called sweet crude.

the highest quality crude you can get. they gave me a little bottle of it. it almost looks like water. it is great crude oil. guess what? bad kids a premium on the market. -- that gets a premium on the market. but they have to give a $32 a barrel discount. they cannot get it to market. this president refuses to do anything to bring more oil into this country. ladies and gentlemen, we need a president who understands that energy drives america. it drives mich., a dress manufacturing, it dries quality of life in america. -- it dries mich., it drives

manufacturing, it drives quality of life in america. when the president to will lean -- legal gets gasoline prices down. we will create jobs. that is promise number 1. [applause] the next thing we need to do is look at the regulatory burden in this country. i talk a lot about how our economy is struggling under the burden of the president who has put in place more regulations on businesses in this country than any president in history and one year. he did 150 regulations lester that cost over $100 million on the economy. -- last year that cost over $100

million on the economy. what i will do is take every single one of those obama regulations, hundreds of them, some will we will repeal and replace them with regulations that are lower cost and believe in the red story power of the states and the goodness of the american people to abide by the laws and not have government have to micromanage every process they do in their workplace and home. [applause] that will stimulate this economy. americans do not like to be regulated. they do not like people being there and micromanaging everything they do. they believe in freedom. that will be a huge impetus. one of the things i hear all the time from businesses,

uncertainty -- what are they going to do next? what is this administration go on to do to make my business work? if it is a large business, you can hire somebody in your compliance department. if you are a small business, it is to you. instead of selling products and improving your products or other things that make your business go, you are worried about government paper work. you are consumed with complying with the federal government. this is one of the great opportunities to stimulate small business in america. that is doing something about this regulatory burden. next, the importance of getting

the manufacturing sector of this economy going again. we know we can compete with anybody in the world. [applause] we can compete with anybody in the world in manufacturing. the american worker, the american engineer, the american innovator, we prove it over and over again. --re still proving how we how we can compete, we can be profitable, we can out-innovate to make sure we produce the best quality products and we do so at a competitive price as long as we have a level playing field. ladies and gentlemen, we do not have a level playing field. our government puts us at an economic disadvantage.

our tax rate and regulatory burden, our cost of capital has made us uncompetitive. we are 20% more costly in america to do manufacturing here, and excluding labor costs, and this is really important. if you take labor costs out, american regulation and taxation make our country 20% more costly to do business in them are nine top trading partners. we do not have a level trait -- we do not have a level playing field. i put forward a plan that says, let's look to what the government does to make our businesses on competitive. there is one unique sector of the economy that is at a disadvantage.

the rest of the economy is not competing head-to-head with china and mexico and indonesia and india for those jobs. in manufacturing, we are. they want those jobs. they know that manufacturing is a wealth generator for the economy. they know making things creates wealth. they also know that it gives opportunities for folks at all skill levels in the economy to be able to participate. we still have a lot of great innovation going on. that innovation, sometimes, it is made in this country, but more often it is not. the opportunities are more and more limited to those who have succeeded in the knowledge based economy. we want them to succeed. we also want the products that are creating to be manufactured here. so everybody else can

participate. it is one thing if we do not have the horses and we cannot be competitive because someone else has been as to the punch. but it is -- but if it is government causing the problem, the government has the responsibility to change the playing field. that is why the corporate tax on manufacturers in america -- eliminated. [applause] that is important for blue- collar america and it is important for small town america. small-town america, i know there is a big manufacturing mecca here. but you all know, almost every small town in america is there for a handful of reasons. there was a railroad crossing or an intersection of roads or a

mine or agriculture that was processed there or there was a manufacturing center that created something. almost every little town is built and run some sort of manufacturing and processing. that is small town america. guess what is happening to small town america. it is dying on the vine. manufacturing is dying on the vine. processing is dying on the vine. we went from 21% in the work force down to 9% involved in manufacturing and processing. a lot of those small towns -- the jobs are not around anymore. the kids have to go off to the bigger cities to get the employment opportunities. guess where manufacturers want

to locate? they want to locate in small- town america. that is where manufacturers find the land to be affordable. they are not gone to locate in the suburbs. this is an opportunity for a revitalization for a very key part of america. that is why manufacturing is so important. it is also a important for national security. it's critical components for our economy are not made here in america, with this hostile environment that is getting more hostile every day because of the ineptitude of this president, we are in a situation where critical infrastructure parts of things that we need to be able to survive in america it is

important to america. manufacturing is great for detroit and is great for the entire country. it is great for the national security for our country. [applause] it is not just manufacturers that we give a tax break to. i will take the corporate tax rate and cut in half to 17.5%, a flat tax. he would be able to the expense of everything, no depreciation. a simple tax code. leveling the playing field. how? the little guy and the big guy

-- the little guy will play the same -- pay the same rights as the big guy. they have the opportunity to have a level playing field. simplifying the tax code, one tax credit for research and development so we can keep this knowledge based economy going in america. we will have a dynamic market growth with lower energy prices, energy production, lower regulatory -- maybe that is not the best word. working with business to help them produce with a better tax rate and the zero tax rate for manufacturers. this will get america growing on the tax side. that is only part of the problem. we have to do some other things on the government side.

government is hampering our economy and living our potential. it is creating that uncertainty as to what is going to have been because every dollar we spend is a tax. it may not be a tax today, but it will be a tax at some point. pay it back or suffer the consequences. the other parts of the plan is to do something to get this budget deficit under control. first and foremost, day one, i will propose a bill to repeal obamacare right out of the box. [applause] the biggest issue in this election is freedom. i've just talked about creating economic freedom. the opportunity for everybody to

get a job. the other issue in this country is the reach of the federal government. president obama went out and promised everybody that he would give people the right to health care. careful. careful. when government says they can give you the right to something, we need to remember this. where do our rights come from? they come in the declaration of independence. that is what makes us unique. the bill of rights, if you think of the things that shine brightly in america, it was defend national freedoms in the bill of rights.

it is not as the trampling of obamacare on our economic rights, the ability to choose a health care plan, choose providers and hospitals, to is the kind of health service you want to purchase, you'll have five plans. you have to comply with the government. if you don't, you will be fined. your employer is going to be fined. it is prescriptive, it tells you exactly what to do and how to do it. they say it is not a government run health care system, but i do not know what is. it tells the insurance companies how much money they have to pay out in claims. imagine. if the government tells your business or tells your family how much money you have to spend on food dish year, this is what

they're doing with the insurance companies. you have to pay 85% of the money received in claims. 15% to run their business and make a profit. we would be telling business is how much money they can spend and keep and how to do it? why is it surprising that they think they can tell you -- look at what is by not in massachusetts. the same thing. -- look at what is going on in massachusetts. the same thing. it is not just economic freedom. it is also first amendment freedoms at stake. they can tell you what benefits

you will have and what businesses have to provide and churches have to provide. this is one of the most outrageous affront to the first amendment in the history of our country. [applause] i can tell you, on day one, and if that regulation is still around, it will be gone on day one under my administration. [applause] obamacare has to be repealed, but there is a lot of other things out there that need to be repealed, too. one of the other things is in the housing market. if you look at the housing market, it is a struggle.

i am in a situation in our own house where we happen to buy at a very bad year. the housing value of my house is a fraction of what it was when i bought it. i am not alone. a lot of folks here in michigan, if you bought at the wrong time, you'll be in that same situation. the market collapsed underneath you. what are we going to do about it? when things got bad and 2008, we made a mistake, in my opinion. we bailed out the wall street banks. we said we would make sure that you do not lose money. and then we will regulate you to the point where you will not take the normal course of flushing through these loans and getting through those books and trying to get the housing market

to reach its equilibrium. they held on. it is not going to work. what we need to do is completely restructure the housing system in this country. the first thing we can do to help folks who are under water, who were going to lose money, if you sell your house, we allow you to deduct the losses from the cell of europe -- sale of your house. you cannot deduct the losses on the sale of your house. i think this is the way to soften the blow for folks who will have to sell their house. without affecting the marketplace, without the

government picking winners and losers. it is a fair way of doing it. it is a market-based way of dealing with the problems we have in the housing market today. we have to do something about freddie mae and fannie mac. those are the organizations that -- they are not a horrible way of providing housing support. but what they are and what they became was a politicized wade. they became a way for a group of people -- barney frank and chris dodd -- all the people pressuring the organizations. what happened was it created a bubble. and the bubble burst. a lot of folks bought at the

wrong time ended up holding the wrong -- holding the bag. we need to get the politics out of the housing industry. let the private sector deal with it without the politicians. [applause] dodd-frank, and another when, -- another one, i do not believe in bailout. when i was in high school, we'll look back on the glory days in pittsburgh of the pittsburgh steelers in the 1970's. that is all we had to hang onto. the steel industry was collapsing. we were very proud of our pittsburgh steelers, but we will not -- were not producing a lot of steel. we lost huge icons.

all the more gone, no longer around. we struggled and we suffered, but we bounced back. there are still a few steel companies around. not anything like what it was before. i used to represent the district in congress. there are a lot of shopping malls and other high-technology businesses where they were in the past. but pittsburgh came back. it took a while, but we have a diversified economy. it is a great place to live again. the market worked. that is what i believed in. that is what i stood for. that -- i will build one group of folks and not bailout and other industry.

you are either for them or against them, but don't start picking winners and losers. he may not like my position on bail out, but i have been consistent, unlike other people in this race. [applause] as part of fixing the housing market, we have to do something about the successor to the bailouts. dodd-frank is a successor to the too big to fail philosophy that encourage you to do the bailout and the first place. on obamacare, con dodd-frank, i have been for private sector

health care. i believe in capital markets. that has been my philosophy. i have stood for those things, on like other people in this race. these are the huge issues of the day. these are the issues that will decide this election. it is about to your trust in what kind of america we will have. we have a strong track record that police and you, believes in it for the markets and free people -- that believes in you, believes in free markets and free people. we have an opportunity here with the right candidate and the right message to go out and tell the story to the american public. how we can build a strong prosperous america. we have the plans to do it. if we can put those plans in place and did that last piece,

cut the government, i propose a balanced budget. i was fighting for a balanced budget before it was cool to fight for a balanced budget. back in 1995 -- [applause] 1995, we had an opportunity to pass a balanced budget amendment to the constitution. we came within one vote. most people do not remember that. we came within one vote. i have no doubt it would have passed. it passed the house and we had 15 or 16 democratic senators willing to vote for it. on the last day, the chairman of the appropriations committee, who had been in the senate for 29 years, decided to flip his vote.

i had been in the senate for three months, 36 years old, here is this young guy from pennsylvania, was seen as a troublemaker. i just sent to the chairman of the ways and means committee to jail. we were a bad dude coming into the united states senate. i had a reputation for that. i'd better keep my head down because i have this reputation of being a troublemaker. the center -- the senator lauded by the media. i called for his resignation of

chairman of the appropriations committee. why? he betrayed the very essence of what the republican party believes in, which is limited government and responsible fiscal policy. we should not elect him to chair a committee that spent the money in congress. of course, they beat me upside the head. but i said, this is something we need to take a stand down. we need to fight for the things the american public wants for their government. limited government. we did not pass it and we never got close again. even though we have surpluses, and never could get the votes again. we lost seats in the next election and it was never able to happen. ladies and gentlemen, we have an opportunity again. we are looking at trillions of

dollars in debt. we have an opportunity because the american public is recognizing the great threats that this huge government is going to face. i will go out and i will go across this country and i will argue and i will do everything i can to get the american public to support and rally around passing a balanced budget amendment to the constitution that lennon's the size of the federal government to make import -- that limits the size of the federal government to 18%. if we keep the government limited to 18 cents of every dollar that is spent in america, we will have freedom in america for your children and grandchildren. guaranteed. [applause] that is a long-term plan. the short-term plan is we have

to deal with the problems in our budget. i proposed $5 trillion in reductions over five years. no one else has come close to that number. not even ron paul. i will spend less money every year for the four years as president. we will see the money -- you hear this in washington. the rate of growth will go down and we will consider that a cut in spending. we will see less money spent each year for four years in washington, d.c. we will limit the government. that is what our objective is. when i was born, the defense department was 60% of the budget. it is now 17%. if anybody thinks that is what the problem is, the answer is

no. look at what this president is doing. he talks a good game about what he wants to do to prepare for the next war. he is not investing in the technology to do it. he is creating a serious defense gap in this country. he is doing it because he wants to withdraw america from its influence and prominent around the world. if we do not have the tools to have the influence and to do -- and to have the type of equipment and manpower around the world to have that presence that is necessary that our allies trust us to be a reliable ally, we do not have the capability, we will not do it. we will pull back. what is what's the president going to do? he's going to keep buying votes. what we have to do is again go back to the basic principles.

we've got to limit government in the best way to do that, limit dependency on government. that's the problem right now. [applause] so i put forth a detailed plan of how we're going to limit government, we're going to take the appropriated accounts, that's about another 20% of the budget, everything other than entitlement programs and defense we're going to cut it 10%, we're going to go back to 2008, excuse me, cut it 10% and then freeze it. and make government more efficient, we'll put all sorts of -- there's a program called lean six signal which i signed onto to bring business programitieses into government, start getting rid of all of these agencies and personnel that simply don't do anything except push paper and roar about process. [applause] and then we're going to take on the entitlement programs.

means-tested entitlement programs, there's 72 of them. i'm a catholic and i'm told that one of the responsibilities of the church is to care for those who are the least among us. and i believe that. and that's a real responsibility for all of us. [applause] but i can tell that you doesn't mean it's government's role to take care of the least among us. it's our responsibility to take care of the least among us. and what we find is that when government is doing so, then people who believe and are taught that it is our responsibility, say, you know what? i pay a lot in taxes, there's all these government programs, maybe i just don't need to fill in the blank. we become detached from our neighbors, we become detached from the challenges in our community and the struggles of people within our community.

that's not a healthy thing for our country. it's not a healthy thing for our neighborhoods and communities. we need to get government back in the position of being that ultimate safety net, but being that position is a handup, not a handout. i was the author of welfare reform 15 years ago and we transfer transformed the welfare sthm in this country from a permanent dependency system to one that was transitional. why? because we do the the federal government out of it, we block granted it to the state. we cut it, we capped it. we froze it. and we said so the state, can you do -- to the states, you can do, we can redesign this program, working with local community, working with the nonprofit sector and can you redesign this program into a transitional program. why? becauseers there going to be two requirements. a work requirement and a time limit. that's compassionate. why?

because poverty isn't the ultimate -- it's not a disability. it's a temporary condition that if you believe in the dignity of every human life and their ability to be able to pick themselves up and rise through a struggle, that is the essence of america. that's what makes us great. we need to do that, we need to do that with all of the means-tested entitlement programs. get them back to the state. put a time limit, put a work requirement. and tell people, yes, we want to help. but the best way we can help you is to get you back on your feet so you can help yourself. that's the key to america. we can take these programs and not only can we save a bunch of money, we can save lives. we can transform communities. finally, and you know i always have to mention this, we're not going to turn this economy around unless we do more to

help the american family. [applause] we have seen over the past 50 years the breakdown of the american family. and as a result more and more people on the margins of society, why? because it's just a lot harder to economically succeed in a family where there's one person doing the job that's designed for two. it's no rap against those who are doing their best to try. but it's harder and what we're see something more and more children having children. i was at a -- down in texas yesterday and i ran into an eighth grade teacher in dallas who teaches in a school and her job is to deal with eighth graders, she has a classroom of eighth graders who are moms.

a classroom of eighth graders who are moms. and she was talking about meeting the great-grandparents, great-grandmother of this -- these girls and all of the other mothers and grandmothers up the line. it's generational. and it's not something that we can turn our eyes against, say, well, it's just a problem in a community and we can sort of just worry about everything else, not really worry about what's going on. with 40% of this children being born out of wed lock, 40%. daniel patrick important hand sounded the alarm in the minority communities in america back in the 1960's when it hit 20%. it's now 40% and in certain minority communities and in certain urban areas it's 75% and 80%. families are not forming. and government is there to provide but it's not, it's not

the road to success. oh, there will be some that succeed. but far, far, far too many fail. and as a result of that our society is hurting. we need to have first government programs that don't create that dependency, so there are some things that government does do to create that kind of dependency. secondly, we need to have a national discussion about this. there's a difference between me and the left. when i talk about the importance of building strong families, i don't necessarily mean that we have to have a government program to do it. but we do need to have a discussion about how we can do it. [applause] i talk about what went on in chattanooga, tennessee, which i'll be atin chattanooga this t this problem of out of wed lock birth rates, one of the highest rates of divorce, highest rates of single parenthood.

and they decided they didn't -- they weren't aware of it, they were shocked to find out. so the community got together, churches, business leaders, educators and philanthropists and they came together and they formed a nonprofit organization to promote marriage, to promote fatherhood. promote marriage in schools, talk about how important the institution of marriage is, what it means to be a mother and a father, what the responsibilities are. why it's good for them economically and socially, why it's good for the community. why it's healthy for a variety of different perspectives. same thing with trying to get fathers back engaged. there are things that we can and should do as a nation. we can rally together and start focusing on how we can build healthier families and health evercommunities as a result. you want limited government, you better have healthy families. because you can't have it without it. so -- [applause]

yes, i've talked about the problems that confront america. but there are solutions to all those problems and guess who they involve? you. ultimately every solution i put forward tonight talks about how the great -- greatness of the american people, your industry, your compassion, your willing tons step up when your country needs you, can transform this country back into a country that is growing, is vie is hopeful -- vibrant, is hopeful, believes in itself, not government to take on its problem, believes in informing and building strong communities as the way to address the problems most uniquely that we all have. we all have problems. but the best way to solve them is first at the family. next in your -- with your friends, your church, your community, your civic organizations. that's how america works best. but when you're out there all alone with no family, no church

, a neighborhood that you're afraid to go out at night, you feel alone out there and all you have is government, that is a very lonely place to be. we need to do better than that in america. and we can do better than that. [applause] that's what this campaign should be about. it should be about a vision for america. it should be about high-minded things. things that are high-minded yet very doable and practical. that's what americans are looking for in this race. they're looking for someone who can paint a vision, who can draw a contrast, who can show how we can get from here to there and how each american can be a part of that journey. everybody. this is an inclusive plan. it includes everybody in

america. yeah, because i care about the very poor. i care about the guy who's not doing as wls as he could or as a gal. i care about everybody. i'm a 100%er when it comes to a president not a 99% versus 1%. i appreciate you coming out here tonight and being with me. so i can lay out this vision here on the eve of this election in michigan. because we've seen too much just nasty politics. on issues that, well, frankly, i haven't even talked about tonight, have i? why? because they're not the key issues in this campaign. they are issues that are off and they're irrelevant in most cases. we have someone who has a vision, has a track record to back up that vision, has a contrast to a president who has

a fundamentally different vision, has the energy and the drive to go out. i'm not going to be taking any golf vacations between now and the general election. [applause] my dad and my grandfather, they always said, there's three keys to success in america. i heard it almost every day of my life. work, work, work. [laughter] i heard it every day. it drove me crazy. [laughter] but i heard it. because that's what my grandfather believed in and my dad always threw in a fourth, get a good education. but it was always about work. that's what -- i can tell you, i've been back to visit my relatives in the old country. just the work ethic isn't there. it's just different. it's just different. we are different. we're different because we understand what we're placed here today.

we're placed here to provide for ourselves, that's our mission. provide for ourselves and our families. to take care of those in need in our society and help out our neighbor. to build those strong communities and participate as active members of those communities. you know what? one of the great things about america is we believe if we just do that, everything is going to be fine in america. you know what? it usually is. but not now. why? because we have a group of people in washington who are structuring a government and a system that's going to rob you of the opportunity to do that. they're going to start managing how you do those things and those institutions that you were going to be a part of, they're going away. and unfortunately if governor romney, who proposes a tax bill just this week, who says to folks who are the biggest givers to charity in america, that we're going to limit your ability to deduct gifts to charitable organizations, you want to talk about torpedoing

the very civic institutions that make america work at the grassroots level, you just take their money away. you take the incentives for people to be generous to them and like it or not that is -- that plays a role in the amount of the donations that are given. ladies and gentlemen, i'm not going to do that. i understand how america works. it's not about making sure that my plan is revenue-neutral. it's understanding in your plan how it affects each and every american and the institutions that make this country great. i shared my vision with you tonight because it's probably the only time you're going to hear it. because most of the folks who are going to be romping -- reporting here aren't going to write about it, they're going to write about some controversial comment. [applause]

but in one part or another, this is it's vision i've been talking about since i was driving around in a pickup truck in iowa. and you know what? americans are responding to it. they're not responding to all the garbage, they're responding to a vision about what affects them. that's what this campaign's going to be about. we're starting it again here tonight. and we will finish this campaign on a high note and a positive vision and a winning one for america. thank you all very much. and god bless. thank you. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012]

>> so, from there from detroit, from lincoln park. live coverage of former senator rick santorum. here's a look at the republican presidential campaign calendar. arizona and michigan voters go to the polls on tuesday. on march 3 washington state holds its caucuses. and on march 610 states hold primaries on super tuesday. on saturday, march 10, wyoming, kansas, the virgin islands and guam hold their caucuses and we'll have full campaign coverage here on the c-span networks and on our campaign website, c-span.org/

campaign2012. earlier today in detroit, in the city of detroit, at the football stadium, ford field, mitt romney's campaign held an event. he outlined his economic plan which includes tax and spending cuts. this speech was to the detroit economic club who were there at the football stadium. >> good afternoon. this is truly an honor for me to be here this morning, this afternoon, and to make this introduction. this is a guest, no stranger to this club or the state of michigan and introducing governor romney as i say is truly a treat.

our country has never elected a president who was born and raised in the state of michigan. it is clearly time for a change. [applause] our state has never elected a car guy. our state, how do i want to say this? some of you may know that i am a car guy. ok? and here in detroit we know what it means to say someone is a car guy. mitt romney's dad was a car guy. mitt grew up learning about american automobiles, appreciating the workmanship and the dedication that our industry requires. the problems, the prospects and the future of the automatic industry were often discusses -- automobile industry were often discussed at the romney dinner table. we need someone with a proactive voice in washington. we need someone who understands

our state. understands complex manufacturing. understands our industry and, believe me, we have one who will be speaking here today. but mitt romney is much more than just a car guy. or a son of michigan. as important as those things are to us, it's much deeper. mitt romney is the only candidate in this race who has the background, the experience and the vision to beat barack obama. and then go on to serve our country as our next great president. if we are going to change washington, we need someone who is not of washington. mitt romney's experience and record is about results, success and kept promises. he is the only candidate in this race, republican or democrat, i want to repeat this, the only candidate who has not worked in washington.

i think that's a big plus. he's never been in congress. he's never been a lobbyist. he's not been shaped by the distorted atmosphere and air in washington. in fact, his story's the opposite. he's had 25 years in business, balancing budgets, eliminating waste and keeping, frankly keeping away from washington. he started new businesses, he's turned around broken ones and i know he's not ashamed of the fact that he was very successful at it and i'm incredibly proud that he was very successful at it. [applause] in 2002 when the salt lake olympic games were mired in scandal and controversy many were suggesting that they could not be salvaged. the olympic committee and community called on mitt romney. in true mitt form he answered

their call. he went to salt lake, he restructured the games, he cut budgets, he eliminated inefficiencies and he restored the faith of the country, the donor community and the olympic committee. in the end the salt lake olympics were considered to be the most successful to date and left behind, i love this, he left behind a surplus. can you imagine that? then mitt went to massachusetts, was elected governor and led an incredible turnaround. you think washington is bad? 85% of the legislature was democratic. the opposing party. and yet he was able to cut taxes 19 times and left a rainy day fund that any governor would be proud of. i'm not going to spell out what the governor's going to say today, what he's planning to do when he becomes our next president. that obviously is up to him. but i do know this. our country remains locked in

economic crisis. millions of americans can't find work. they've lost their homes and their future is clearly not what they had planned. here in detroit we know that feeling firsthand. we've experienced this crisis probably more profoundly than most. i know that this great crisis have a way of bringing forward great leaders and quite frankly we have a great leader in front of us today. please welcome a man of great integrity, great vision, a dear friend, ladies and gentlemen, i give you the next president of the united states, mitt romney. [applause] >> thank you, thank you, thank you. wow, thank you so much. thank you, david. betting. thank you for your warm reception and response. i have to put a plug in for david's suburban auto group. he's the car guy, too.

i love cars. i appreciate the warmth of your welcome and the chance to speak with you, i guess it's noon. i hate standing between you and your lunch. but i want to talk to you about policy today. this is not exciting and barn -burning but it's important. and i want to give you a chance to think about the various plans i have to get this economy going again. nationally and here in michigan. i also want to thank the economic club for hosting all of us this morning and i want to thank the folks at the ford field for making this space available for us. i guess we had a hard time finding a large enough place to meet and this certainly is. [laughter] by the way, congratulations to the lions on a great season. and to the next jen great season. -- and to the next great season. it's good to be back in michigan. this of course is where i was born and raised. i was actually born in harper hospital. and i grew up here. i remember the first day at kindergarten. i think it was at hampton school. and there were about 30 kids in

our kindergarten class. as i looked around, i imagined their parents had dropped them off at the school each morning and those parents were confident that our future would be brighter than even the lives that they'd enjoyed. you see, our parents believed in america's promise. they believed that if you built a good home and taught your kids the right kind of values, if you made sure your kids got an education and you taught them to work hard, that their future could be prosperous. and secure. in those days we all believed that the future was full of possibility and prosperity. we felt that joifl optimism that comes from being raised in a land of opportunity. a place where if you're willing to take risk and work hard and get education, have the right values, anyone can make a better life. we are the land of opportunity. that deep confidence in a better tomorrow is the basic promise of america.

but today that promise is being threatened. by a faltering economy and in my view by a failed presidency. for 36 months the unemployment rate has been over 8%. 24 million of our fellow americans are struggling to find work. there's some three million missing workers in america. people who dropped out of the work force. home values are down, forkse had been at a record high level. our national debt is way too high. and the opportunities in the nation are too few. now everywhere i've gone in this campaign i've met americans who were suffering as a result of the obama economy. you can see it in their faces and you can hear it in their voices. they're anxious. they're scared about the future. i met moms and dads who wereone. one works the night shift. they barely get to meet and to have dinner together. you have heard the new definition of the american

dream? dick armey said this. it is not owning a home. it is getting your kids out of it. [laughter] everywhere i go, i hear stories that are sad reminders of the failed presidency we see before us. president obama said he fixed three things when he became president. first, he said he would hold unemployment under 8%. then he said he would cut the deficit in half. he doubled it. and he said he would make medicare and social security solvent for future generations. three years later he has not offered, as far as i am aware, a single serious proposal for medicare or social security solvency. we have seen a failure to lead.

that is why i am running for president. i want to restore america's promised. that means more jobs, less debt, and smaller government. in the campaign, i am offering more than a change of policy. i am offering a fundamental change in perspective and philosophy for washington and the nation. you may have seen earlier this week i put forward a pro-growth tax reform policy to get our economy moving again. today, this administration is focused on unemployment benefits. what workers really want is a good job. and rising wages. reform of the tax code is, in my view, one of the surest and quickest ways to achieve that goal. i will make across-the-board 20% reduction in marginal income-tax rates. 20% down across the board.

[applause] and think about this. by reducing the tax on the next dollar earned by all taxpayers, we encourage hard work, encourage risk-taking, encourage productivity by allowing americans to keep more of what they earn. and by the way, the businesses that pay taxes with individual income tax, they account for guess what? guess what percentage of american workers work for those businesses? personal income tax companies? over half of all american workers work for those kind of companies in united states. this kind of tax cut encourages all business to hire, raise wages, and small business is what pulls is out of recession. that is pertinent. second, i will make our business taxation competitive globally. i will reduce the corporate tax

rate to 25% from the current 35%. we are the highest in the world. that has got to end. let's get competitive again. [applause] i am also going to make the r&d tax cut permanent so we can foster the kind of innovation that drives growth long-term. and i will get rid of the job- killing repatriation tax. this repatriation tax. if an american company, like ford is making cars in china and they make a profit there, right now if they invest in china, there is no u.s. tax. but if they bring the money home, then we charge them up to 35% tax. this makes no sense. this has got to end.

we have to endure the repatriation tax and bring dollars on. it is estimated to be $1 trillion that is over the seas. [applause] of course, i am going to maintain the 15% capital gains tax rate. that is the right level to keep our economy going. i will eliminate the tax entirely, by the way, i will eliminate that entirely for those with an annual income below to under thousand dollars. i will encourage business investment and economic growth. finally, i will repeal the alternative minimum tax. it is simply not fair. let me make clear -- these changes will not allowed to raise the deficit. strong economic growth, spending cuts, and broadening

the base will offset the reductions. americans will continue to enjoy the tax benefits that favor important priorities, including home mortgage interest reductions, charitable giving, health care, and savings. but there will be some changes in the current deductions. those to receive the greatest benefit from that 20% cut are going to see some of the most significant limits so we can keep these cuts progressive. they will increase wages. they will grow jobs. let's encourage investment and not penalize people for being successful. [applause] let me mention something else. all of you are familiar with a balance sheet who are experienced in business. the larger our federal

government, the government does not publish the balancesheet. in fact, we have one. we have to fix our national balancesheet. today, we face $62 trillion in unfunded promises in our entitlement programs, medicare and social security being the largest. we talked a lot about the $15 trillion of deficit debt that has piled up. we have to tackle that debt as well. it is the $62 trillion in unfunded promises that keeps our growth at. a few common-sense reforms are going to make sure that we can save social security and medicare for future generations. tax act or off the table. there'll be no change also for people who are near retirement or currently retired. but younger generations have to strengthen the system. when it comes to social

security, what i will do is slowly raise the retirement age. we will also slowed the growth in benefits for future retirees. and tomorrow seniors will have a choice among insurance providers, including traditional medicare offered by the government, and as with medicare part d, private-sector insurance. seniors will be offered the lowest possible price. with medicare, like with social security, lower and seniors will receive the most generous benefits. starting in 2022, new retirees will participate in the new system. we will gradually increase the medicare eligibility age each year. in the long run, the programs will be increasing only as fast as life expectancy. those are the kind of common

sense solutions we need to have. we need to have a balance sheet that is in balance. it is time to get that done. [applause] one more thing. my administration will make the hundreds of billions of dollars of cuts necessary to reduce spending to 20% of the economy by the end of my first term. and i will capet at that 20% level. then, without sacrificing our military superiority, i will balance the budget. there are three things we need to do. first, i will cut programs. i am going to look it every single government program and ask this question -- is this program so critical that it is worth borrowing money from china to pay for it? and if not, and i am going to

get rid of the. i will start with the easiest cut of all. i will get rid of obamacare. [applause] you know, it is a $1 trillion entitlement we do not want and cannot afford. it is bad medicine. when it i am president, and it will be over. i will also cut subsidies to amtrak and funding for planned parenthood. we will repeal the davis that to save taxpayers $100 billion over 10-year period. we will take a lot of federal programs and sent them back to the state's. i am going to send medicaid back to the states and cap that. i would do the same for other programs like food stamps and job training. states are better able to perform these kinds of functions.

and by the way, once the economy is really growing again, i believe we should return our spending level to the pre- recession level and cap the rate of growth. taxpayers that save money and those in need the benefits of these programs will find they are more effective and efficient and responsive if they are run at the state level. there are such differences today. let states craft their own programs for the poor. welfare reform. i want to extend that conservative, small government philosophy across the entire social safety net for those that are in need of our help. and finally -- i said cut programs to balance the budget. second, send programs back to states where we cap the growth rate and let states manage the programs as they see best. in the third thing is to make

sure the government that remains, that government has to be efficient. i will shrink the size of the federal work force. initially 10% of attrition. then i will link the pay of public servants to the private sector. [applause] now, this is a plan to get america back on track. talking about tax policy, lowering tax rates to promote growth, talking about entitlements reform, deficit reduction, cutting spending, cutting programs and making government more efficient. i also want to take a moment to think about michigan. what it takes to get michigan on track, in addition to what is happening at the national level. that recalls in many respects around the auto industry. for michigan to be vital, the

auto industry has to be growing and thriving. i hope we learned lessons from the past. in my view, the industry got in trouble because the uaw asked for too much. it hurt domestic automakers and provided a benefit to some of the foreign automakers. the result of those missed steps was a cost penalty per car of about $2,000. even the best engineers in the world, and they are here, could not overcome that kind of disadvantage. as we look forward, it is important that the uaw takes care not to impair the long term growth of the industry. cap a scant attack to be worked out between the government and private-sector so they do not become overly burdensome. and the companies, they have got to invest in new technology and take advantage of the

massive new markets. the largest markets in the world will be in brazil and indonesia and china. we need to get out of turn -- we need to get out of general motors so the future is determined by the marketplace, not bureaucrats in washington. [applause] detroit should not be the motor city of america. it has got to be the motor city of the entire world and i want to make sure that happens. [applause] what i have described, i believe is an economic plan that will strengthen america, strengthen mich., by making bold cuts in spending and common sense reforms. we are going to make our government simpler, smaller, and smarter. through pro-growth policy, we will get our economy back on

track and get our citizens back to work. taken together, the plan i am proposing represents the biggest fundamental change to the government in modern history. these are conservative, pro- growth policies that will no longer -- that will not only to start the economy, but it will return this to a society where values of opportunity are still higher than the use of entitlement. less debt, smaller government. i know president obama is going to criticize my proposal. so be it. i believe the american people are ready for new leadership. i believe they really do deserve all old, conservative plan for growth, and unlike the president, i actually have that plan. my plan requires sacrifice. does it not -- it does not

require a leader to promise bigger and bigger benefits. it requires a leader if you need to call for sacrifice. if i am at elected president, i promise you this. we are going to restore america's promise. here and in michigan, the future will once again be a full of promise and prosperity. together, we can get our debt under control. we can rain and the deficit that imperils our future. and a pro-growth tax policy will encourage investment again, fostered risk-taking, investment. if we proceed with the policies i just described, he will see a michigan with rising home values again. kids will come out of college

and find jobs that are consistent with their skills. businesses will come here, because of your on parallel work force, engineering skills, extraordinary institutions of higher learning. michigan will once again be known as the engine of innovation. i am not promising that there will not be sacrificed. i do promise every day will be on a track to get better and better, and together we will make america strong again. to do that, i need your help. next tuesday, i will need your vote. that is part one. if you want to make this election about restoring america's greatness, and hope you will join me. this is a critical time for our country. i love the foundation of this extraordinary land. i believe it was spoken by the founders of this country when they wrote the declaration of independence. they chose their words carefully. they said "we are endowed by our creator" with our rights.

among those rights are life, liberty, and the pursuit of happiness. that last phrase, pursuit of happiness, we often gloss over in our mind. it suggests that in america people would not be limited by government or the circumstance of their birth. because of these freedoms, our freedom, our liberty, and our right to choose our course and live, america is the place that people came with pioneering spirit. pioneers and innovators. parts workers came to work for them and build this extraordinary land. we have a president who wants to transform america into something we would not recognize. i do not think that is the right course for america. i love what we are.

i want to restore freedom. i want to restore at a conviction that people pursuing their own path in life will build their own future. so, i come to you and ask for your help. i want to restore america. this is a critical time for america. we have to choose who we are. what the soul of america is going to be. will we be a nation led by massive government in washington and taking a larger and larger share? you realize that the government represents 35% of our economy? we are inches away from no longer being a free economy. i want to get back to the american people being able to pursue their course and live. i love this country. i love what it stands for. i am optimistic about the future. i am convinced the american people, if they are led by people who are actual leaders

who know how to call for sacrifice rather than promise bigger and bigger benefits, americans will rise to the occasion. i believe that despite the challenges we have, if we have a president that will tell the truth and live with integrity, who actually knows how to lead, who, by the way, like cars, and police and the greatness of the american people, we will see michigan come back, and we will see america come back. and we will be the hope of the earth. thank you. [applause] thank you. >> that was fabulous. thank you very much. >> thank you. >> we have a custom to ask a few questions we have been provided from the audience, if we may. >> ok.

>> the first question -- china is a growing power on the world stage. what should the united states due to nurture a strong relationship between the two countries. >> china is smart enough to know that in the free enterprise system, which they have adopted to a certain degree, that you're in competition. they want to strengthen their hand relative to us or a competitive -- or a competitor. that is what competitors to. they have taken advantage that are in many respects an unfair. the reason we have laws and regulations is to allow entities to create a level playing field so be more effective competitor succeeds. china has taken advantage of the fact that we have not been watching very carefully, that we have not insisted they abide by the rules. so, they hack into our computers. government programs. they steal the designs of our

aircraft for two years before we figure it out. so, the millions and billions you spent developing new products, they get for free. they have other practices that are interesting. stealing designs, patents, know how, brand names. things you spend millions and billions of dollars to build, they take for free. and finally, they have a practice of manipulating their currencies, which is holding down the value of their currencies so their products are artificially low-priced. the impact of those unfair practices has seen american businesses go out of business, where with a level playing field, they would not have. you have to have a president who is willing to call them on the carpet and say, hey, we love free-trade. i applaud the colombia-panama deal. we will win on a level playing

field. you cannot have people like china cheating. they recognize that. they have to be sitting back and asking, when will they figure this out? folks say, if we crack down on them, there might be a trade war. this is how much stuff they sell to us. this is how much stuff we sell to them. we need to make sure we get to a level playing bill. in our common interest is a growing, thriving world economy. china can be an ally for prosperity in the world, but we cannot allow them to steal jobs. if we do, the consequences are unthinkable. the time has come for a president that will stand up to china. i will call them our currency manipulator and if necessary apply tariffs. thank you.

>> i was actually thinking right along with that. [laughter] the second question is, what should the united states do to respond to the growing nuclear threat from iran? >> yes, this is one i hope we think about with some sobriety. we are tired of conflict. we have been through 9/11, some long and challenging conflicts -- in afghanistan, which still goes on -- and in iraq. entering another conflict is the furthest thing from our minds. at the same time, iran is on the cusp of developing nuclear capacity. building material they can use in weaponry. and the consequence to the world and to us if they have fissile of material is unthinkable. if iran, the world sponsor of

terror -- has a lot and -- hezbollah and hamas -- and they are there not only to disrupt the places they are, but to disrupt this place. to brush the non-proliferation treaty aside, to develop nuclear materials and potentially use it against it. they had even threatened they would use nuclear weapons against israel. they called israel all one bomb nation. small enough that one bomb would wipe them out. sadly, none of the steps have been taken that would keep iran from becoming nuclear.

the three that come to mind, crippling sanctions. the president did not get them in place. finally, and this should have been done long ago. no. 2, standing behind the dissident voices. they took to the streets, looking to america for support for freedom and the president had nothing to say. inexcusable. in developing military options, communicating that we have military options. and we need a commitment on our part to take military action if they become nuclear. i think it will prevent us from having to take military action. but they have to know that it is unacceptable for the president of the united states and the people of this nation to have our future and our kids future threatened by a nuclear iran. [applause]

>> this will be the third and final question. and you think you are the republican candidate with the best chance of defeating president obama? >> i not only think i have the best chance, i have the only chance. perhaps i am overstating it. my family is leading the applause. [applause] it is always hard to beat an incumbent president. his it is not ea t defeat someone who has the white house. -- it is not easy to defeat someone who has the white house. they can raise money in massive amounts and he will have hundreds of millions of dollars coming in from organized labor. not from members of unions that can choose, they have money coming out of their checks that goes to pac's.

can you imagine that? if you took money out of all of your employees' paychecks and you got to choose who to put it behind, can you imagine such a thing? he is going to be hard to defeat. the only way to defeat him as have someone that runs against him who is very different than he, who can present a clear contrast. i have not spend my life in washington. ron paul spent time in health care, which is different from the president. newt gingrich and others, fine fellows, they have spent their life in washington. i will have credibility on the economy and be able to talk to him about when he says that he turned around america's economy, everything you did make it harder for this economy to recover. obama care did not encourage people to hire more people. dodd-frank did not make it

easier for banks to make loans. when the nlrb makes a decision like in -- those decisions make it harder for the economy to recover. i believe the best way and the only way to get president obama out of the white house and put someone there who will get americans back to work with more jobs, less debt, and a smaller government is if we nominate someone whose career is not politics, who has lived in the private sector, and whose passion is caring for future generations. i want to say thank you david and bath. i apologize for keeping you so long from lunch. i love this country, i should love this state. it feels good being back in michigan. the trees were the right height, the streets are just right. most of the cars i see our

detroit-made automobiles. a mustang and a chevy pickup truck. i used to have a dodge truck. i want to tell you how much i appreciate this day, this city, this country, and i can tell you if i am lucky enough to be president, the governor will not only have a friend and ally and the white house, i will go to work for michigan, america, detroit, and make sure we have a brighter future. it is good to be with you today. thank you. [applause] ho[captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012] >> i do want to take just a moment to mention, when we first announced this meeting, 90 minutes later, we were sold out at the previous venue. thanks to the great folks at

ford field that made this possible. david fisher, a great job being providing -- presiding officer. and governor romney, what a great way to have you back, and unveiling such important policy information. we know you have a busy days, thank you for investing your time with us. i will invite governor romney back to the club as president of the united states. how about that? ok? say thank you to the united states governor. [applause] ♪

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>> political reporter dave levinthal discusses super pak money in the presidential race. we will talk to pamela banks from consumer union. also, buddy roemer. washington journal begins saturday at 7:00 a.m. eastern time. >> we got started because there were a lot of conservative think

tanks that work across issues. there had been no single progressive think tank that works on economic and domestic policy, national security. >> neera tanden on the issue of the washington, d.c. think tank. >> we think there is often and radiology with very little facts behind them. part of our job is to make the arguments and the factual arguments and evidence based arguments. i think sometimes when the facts cannot argue for our position, we reexamine those positions. we think the most fundamental thing is to be right no matter what your views are. >> sunday at 8:00 eastern on c- &a."s "q

>> he also commented on fighting in syria and iran banned nuclear program. nuclear program. >> this is the first time we have had a chance to meet. obviously, we have been very impressed with the first five months of her prime ministership. i shared with her how much michele and i appreciated the hospitality that was shown to us when we visit to copenhagen in the past. i also wanted to say how much we appreciate the great alliance and a partnership we have with the danish people on a whole range of international issues. obviously most recently, the

operations in libya could not have been more -- as affective as it had not been for the precision and excellence of the danish armed forces and their pilots. that is typical of the way danes have punched above their weight in economic affairs. in afghanistan i think the prime minister for the extraordinary support of the danish troops. they have taken significant casualties for which obviously all of us extend our condolences to the families that have been affected. but because of the outstanding work that has been done by guinness -- danish shoulders -- soldiers, we are seeing improvements in the areas they operate. as we were exchanging notes, it

turns out that everybody in denmark wants to talk about the economy all the time. jobs, growth -- we agreed there has been some progress in resolving the sovereign debt issues. there has been some progress with respect to the agreements between the imf and greece. the new government in italy, spain, and portugal are all making significant progress. there is a lot more work to do. we will be consulting closely with denmark. we exchanged ideas on how we can assure not only economic stability in europe but also growth in europe. if europe is growing, then that benefits the u.s. economy as well. we emphasized if there were additional ways we could encourage trade and reduce economic frictions -- reduce economic fractions between the two in a relationship.

we talked about the transition that was already agreed to in lisbon on the when it comes to putting afghans in the lead in security over the next several years. we are going to be consulting closely with not only denmark but other allies in making sure that is a smooth transition and one that is sustainable. we continue the help -- we continue to help the afghan government to support its own sovereignty and to effectively control exporters. we also discussed the extraordinary counter-terrorism cooperation that has taken place between our two countries. i thanked the prime minister for the excellent work her intelligence team has done. we are in constant communication on a whole host of issues. they are one of the leaders when it comes to counter terrorism and are familiar with the

significant threats that are posed by terrorism. we appreciate that very much. we had a chance to talk about a wide range of international issues including the situation and syria. i have to say that all of us who have been seen the terrible pictures coming out of syria and homes recently, we recognize it is absolutely imperative for the international community to rally and send a clear message to president assad it is time for a transition and for that regime to move on. it is time to stop the killing of syrian citizens by their own government. i am encouraged by the international unity that we're developing. the meeting that took place indonesia. -- the meeting that took place and tunisia. we will look for every measure

possible to prevent the slaughter of individuals and syria. this is an area that the prime minister and i deeply agreed. it is important we do not be bystanders during these extraordinary events. at the same time there are other threats in the region including the situation and iran. i think them for their leadership providing the toughest sanctions to have never seen coming out of the eu. we both agree we are making progress and it is working sending a message to iran that it needs to take a different path of the ones to rejoin the international community. there is an expectation on behalf of the world that they abide by their international obligations when it comes to their nuclear program. the final thing we talked about was we both had two daughters.

we traded notes. the prime minister's daughters are slightly older. she assures me that they continue to behave themselves, well into their teenage years. i am encouraged by the report. i thank you very much. i hope you have a wonderful state what you are here. we look forward to working with you again in the near future. >> thank you mr. president. thank you for the kind words. the danish people have a strong sense of closeness to the united states. we always have had that sense. we have had political and economic ties with each other. we have exchanged ideas, culture. most important of all, we share common values. in a turbulent time, this is very important. the friendship alliance between our two countries is in very

good shape right now. i thank you you for that. we talk about the debt situation most of the time in europe. i conveyed a message to the president. i am convinced that we will see ourselves through this crisis. we have put some important measures in place. we have reforms. we have a focus on jobs and growth right now. i think a closer transatlantic relationship would be important. we are dependent on each other. we should have closer trade with each other. i think that will be part of creating sustainable growth in our countries. as you were saying, we also have close ties in terms of security. it is clear -- has been for a long time that danish soldiers

are standing alongside and american soldiers in afghanistan. i want to thank you in the american people for the great effort you have put into afghanistan. it is appreciated worldwide. i know that the danish people really appreciate the global leadership that you and your people have taken also in that context. i look forward to coming back to the united states, to your hometown chicago to participate in the nato summit. we will be discussing afghanistan, of course. one of the major issues is the transition to the next phase in afghanistan. we want to see the afghans taking over responsibilities for their own securities. we in europe are trying to make sure the afghans are capable of taking over their own security. we have some great examples of

our alliance. we have worked together again in libya. we made sure that libya came out on the path of democracy. i think again the americans showed leadership in that context. another area that we discussed as you said was syria. it is quite the opposite situation. it is horrendous what we see right now. i think it is also very true that we have worked together in that area. we will continue that endeavor. just today we have seen that under the leadership of the league of arab states, it has been a step forward in trying to put pressure on syria, which is very important. the same goes for iran. another area where we have worked together is in terms of piracy. i think the president sincerely for the courageous operation

that led to the freeing of two aid workers that work for the danish council. they are safe because of the americans. thank you for that. basically, our security -- our operations in terms of security are very great. i will finish here by saying that i think our meeting has confirmed the friendship and alliance between our two countries. there is a lot we can do. i think it is very important that we have these kinds of meetings to review the friendship and support them. >> thank you very much. >> and thank you. [captions copyright national cable satellite corp. 2012] [captioning performed by national captioning institute]

>> tonight on c-span, politico hosts discussion with the governors of virginia and maryland. later, presidential candidates rick santorum and mitt romney make campaign stops in michigan. >> live saturday on american history tv on c-span 3, 5 civil war historians make their case for 1862's per cent of the year. -- person of the day. we ended the day with a vote. light saturday starting at 9:30 a.m. eastern on c-span 3. >> the governors of virginia and maryland participated in a discussion hosted by political. they discuss several political issues they face, including an abortion measure under discussion in virginia and the

same-sex marriage bill that the maryland legislature passed on thursday. this is one hour. >> good morning. i would like to thank you for getting up this morning for the second state solution conference. also, thank you to people joining us on the wide-screen. we have the respective chairmen of the democratic governors' association and the republican governors association. they are two people well known to us in the washington area. governor bob macdonald of virginia is the chairman of the virginia governor's association. across the river and across the bay, governor martin o'malley is the chairman of the democratic governors association. today is the first day of the governors' association winter meeting.

we really appreciate and taking the time to join us today to take some questions from me and some questions from you in our audience. we're going to take questions throughout the morning. we are going to go an hour or so. i will intersperse those questions throughout rather than doing a hard pill that. you can join us on twitter. we hope you will. anyway, let's get going. we of governor mcdonald and governor o'malley with us. please join us up on stage. [applause] >> thank you. >> thank you both governors for joining us. a special thanks to my home state governor, governor macdonell. >> to have the home field

advantage? >> know, we are on neutral territory here in washington. governor o'malley was kind enough to join us. he was here for our first panel. this is quite an honor. >> glad i could help. >> anyway, we have lots of stuff to mix it up on, but i thought you guys should give a quick overview. to be in charge of something, certainly to be in charge of a state, is to worry about things. what do you must worry about in your job as governor, looking after the health of your state? governor o'malley, we will start with you? >> there is nothing more important, i think, to any of us right now than jobs and the economy and accelerating the jobs recovery. what i am most concerned about and what i am most focused on is making sure that we make the choices we must at the state

level to make the investments that a modern economy requires in order to create jobs. that means protecting investments in education, increasing the skills of our work force, accelerating areas like trade and also the development of new, clean, clean manufacturing like pgm electric drive motors -- like the gm electric drive motors. these are the things we are concerned about. none of it is easy. we have cut $7.5 million from our budget but nevertheless we have protected investments that allow maryland to have a strong breeze economy than most. but we know there are still -- have a stronger economy than most. >> governor, what keeps you up at night? >> nothing. when you have the same job as thomas jefferson and patrick

henry, every day is a good day at work. thank you to politico for doing this. it is a great opportunity. we are focused on a couple of common things. jobs, economic development, how do you get your state to be competitive in a global economy and recover from the greatest downturn since the great depression? we have a 6.2% unemployment rate. both of our states have relatively low unemployment, but we still have several thousand people without jobs, so we are focused on new incentives, tax and regulatory changes, international marketing, all of the things that will produce jobs in our state. secondly, balancing the budget in light of the fiscal stress generally in the economy and some uncertainty created by the federal government's inability to get things done on time, to manage the finances of the nation, as well as the crushing

debt out there, no real plan on jobs that i see. we have to figure out how to make all of that work, areas like medicaid. huge budget drivers in all of our state. how do we make our budgets balance while still employing the services of government? those are the challenges that governors both republican and democrat are facing across the country. >> gov o'malley, does your approach in maryland, do you see it marilyn president obama's approach? you have emphasized balance. what democrats mean by balance is that there should be spending cuts and tax increases. describe your approach in maryland, why you have said the taxes need to be on the table.

>> sure. we certainly subscribe in maryland to the president's call that all of us do our part to be leaders in education, leaders in innovation, and leaders in rebuilding the infrastructure and a common platform upon which our commerce depends and our competitiveness depends. we do subscribe to the president's theory that if we want a better nation, we have to work hard and invest in order to bring that better nation into being for our children and our grandchildren. we do not send back dollars that the federal government would send to maryland so that we can improve transportation and infrastructure. we do partner with the president in retooling gm so

that they can become number one again in america and build cars that people want that are more energy efficient. we have made investments in the port of baltimore so that we can accommodate larger ships coming through the panama canal. why do we do that? because we want to create jobs at home and be more competitive. sometimes, we to ask citizens to pay more. we increase the tobacco cash -- tobacco tax. we now have 400,000 more people with health care than we had before. we believe that the future is not a gift, it is an achievement. we are willing to do the things necessary to achieve it together. >> governor mcdonald, do you support president obama's approach? [laughter] >> i take that as a rhetorical

question, because obviously the answer is no. george allen said the future is now. >> george allen the football coach. i am told richard nixon used to send place to him. >> that i do not know. >> if he is here -- ? >> double reverse. back to the question. we have taken a different approach than many governors around the country. all of us have the same challenge which is how do you balance the budget in fiscally difficult times? one, we realize that families and businesses are making really tough decisions. they're having to make cuts and do things smarter with less. they're having to reprogram, retool, reform the way they do things. we think governors ought to do

the same. because it is not our money. it is the people's money that they have sent to us. we cannot afford to do everything we have always done. we do not have the same amount of money. we're going to do is prioritize, make targeted cuts and significant cuts in some areas. we're going to reform government, consolidate agencies, get rid of boards and commissions, other things like that that will save us money. that is the way we are going to reduce deficits. at the same time, we're going to prioritize economic development, private sector job creation, and grow our way to a stronger virginia. for us, it has worked. we cut the equivalent of $6 trillion from the deficit when i became evident. a predecessor recommended a tax increase. i believed that was the wrong policy. we cut spending in the neighborhood of $6 billion,

invested in job creation, education and transportation, and cut other areas we did not think would lead to that. we got unemployment down. we've had a surplus in the last two years. we have a lot of jobs coming back to virginia. that formula has worked better than the formula we see at the federal level, which is more taxes, more spending, more regulation, and more undermining, in some ways, the free enterprise system with government interference. i think it is working for us and i think it will work in other states. >> do you send money back? >> we have accepted a fair amount of federal money. there is some we have not when strings were attached. reis to the top was one. i would love to have applied to that. i appreciate what the president and arne duncan are doing on

education, especially with charter schools and merit pay, but the strings attached for adopting a fair federal common core were not acceptable in virginia. >> we think our kids should be benchmarks internationally and be able to compete internationally. we were a state that competed for race to the top and we won praise to the top. if it were not for the involvement of president obama and its transportation secretary ray lahood, there would be no silver lining constructed right now in maryland. >> governor o'malley, how closely do you watch what is going on in virginia. if you could do all the things governor mcdonald said just by making targeted cuts and targeted investments without tax increases, why would you not do it? >> of course we watch each other, and we talked about this

a little bit before. we both share this fantastic chesapeake region of innovation. if you look at the innovation, access to colleges and universities -- >> are you worried that virginia will screw it up by not investing in education, not investing in transportation, critical needs throughout the washington region but the virginia legislature is still in the grip of anti-tax republicans and an anti-tax governor that they will not make those investments and they will starve the golden egg? >> every governor is primarily responsible for an concerned about their own state. i will say this. i think we are well served by having a strong neighbor in virginia. it is like being in a shopping mall. if you have a store, you want to be next to a place where a lot of other people are going.

we want virginia to be strong. i can tell you, last year we had a rate of new job creation that was better than virginias. unlike virginia, we went four years in a row without a penny increase to college tuition. we were also named the no. 1 public schools in america four years in a row. we have increased the number of children who take ap exams of all types, and we have greatly increased the number of students taking science, technology, engineering and math courses. i think every state needs to do their part in order to make our country stronger in education, innovation, and rebuilding our infrastructure. have we made cuts? absolutely. $7.5 billion in cuts. governor mcdonald's state is a aaa state the last i checked. our state is a aaa state. we have driven crime down to its

lowest level in 30 years. we have more progress to make. but if you look at other key indicators, i would have marilyn stack up against any other state in the metropolitan mid-atlantic region. last year, we were 14th in the country in job creation. governor mcdonald's commonwealth was 18th or 17th. we still have a lot of work to do. one of the saddest things one of the saddest things that has happened to our nation in recent years nationally is the under capitalizing of the great job generating and opportunity expanding idea that is the united states of america. we would both like to believe that we are fiscally irresponsible in our approach to government, but both of us are also concerned about debt. 55% of that debt is driven by tax cuts during the bush presidency that primarily