Transcript: Debate excerpts – President Obama on Romney’s tax plan

Edited by Jenny Jiang

Excerpts from President Barack Obama’s remarks on Mitt Romney’s tax plan at the first presidential debate held at the University of Denver, Colorado on Oct. 3, 2012:

“Governor Romney’s proposal that he has been promoting for 18 months calls for a $5 trillion tax cut, on top of $2 trillion of additional spending for our military. And he is saying that he is going to pay for it by closing loopholes and deductions. The problem is that he’s been asked over 100 times how you would close those deductions and loopholes, and he hasn’t been able to identify them…”

“When you add up all the loopholes and deductions that upper-income individuals can — are currently taking advantage of, you take those all away, you don’t come close to paying for $5 trillion in tax cuts and $2 trillion in additional military spending.

“And that’s why independent studies looking at this said the only way to meet Governor Romney’s pledge of not reducing the deficit or — or — or not adding to the deficit is by burdening middle-class families. The average middle-class family with children would pay about $2,000 more.

“Now, that’s not my analysis. That’s the analysis of economists who have looked at this. And — and that kind of top — top-down economics, where folks at the top are doing well, so the average person making $3 million is getting a $250,000 tax break, while middle-class families are burdened further, that’s not what I believe is a recipe for economic growth…”

“…For 18 months he’s been running on this tax plan. And now, five weeks before the election, he’s saying that his big, bold idea is, ‘Never mind.’

“And the fact is that if you are lowering the rates the way you described, Governor, then it is not possible to come up with enough deductions and loopholes that only affect high-income individuals to avoid either raising the deficit or burdening the middle class. It’s — it’s math. It’s arithmetic…”

“When it comes to definitions of small business. Under — under my plan, 97 percent of small businesses would not see their income taxes go up. Governor Romney says, well, those top 3 percent, they’re the job creators, they’d be burdened.

“But under Governor Romney’s definition, there are a whole bunch of millionaires and billionaires who are small businesses. Donald Trump is a small business. Now, I know Donald Trump doesn’t like to think of himself as small anything, but — but that’s how you define small businesses if you’re getting business income.

“And that kind of approach, I believe, will not grow our economy, because the only way to pay for it without either burdening the middle class or blowing up our deficit is to make drastic cuts in things like education, making sure that we are continuing to invest in basic science and research, all the things that are helping America grow. And I think that would be a mistake…”

“The approach that Governor Romney’s talking about is the same sales pitch that was made in 2001 and 2003, and we ended up with the slowest job growth in 50 years, we ended up moving from surplus to deficits, and it all culminated in the worst financial crisis since the Great Depression.”



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