Carol, thank you.  Thank you for the work of the Des Moines Register, one of the great papers in America that keeps our democracy free and open.  Appreciate the free press and the work that you do.

It's good to have so many friends here today.  What a great day.  This is fabulous.  Isn't this something.  Boy last time I was here about four years ago—oh you couldn't quite hear, I'll speak louder I guess.  Does that work better?  Yeah.  There's Brian Kennedy.  How are you doing Brian?  It looks like I've stacked the crowd with a couple of old friends, and I appreciate the fact that I'm here with folks that I've known for some years and appreciate your help.

This is a challenging time.  I wish I could start off with terrific news about how well the country's doing and what bright prospects people feel in their hearts right now, but right now most people are concerned about the country and recognize that America's in crisis.  In crisis because we've got 25 million people about that are out of work or have stopped looking for work or are in jobs well beneath their skills.  We've got kids coming out of college that can't find jobs.  We've got people who wonder if they can stay on the family farm.  We have people who wonder if manufacturing is just going to leave our country and go elsewhere.

Iowa is not only a state that leads our nation in agricultural products, but it's also a leading state in manufacturing.  This is an extraordinary state with a diverse economy, and Iowa's performing and faring better than the nation as a whole, but the nation as a whole is really struggling.  And part of that reason is we're led by a man who's a fine fellow, but he's out of his depth and doesn't understand how the economy works.  [applause]

I happen to believe that if you want to create jobs, it helps to have had a job.  [cheers]  And I have spent my life in the private sector.  I have been doing during my career what you have been doing, which is trying to make ends meet.  My business helped me start a company and then I helped work to try and manage enterprises to make them better if I could, sometimes successful, sometimes not, but I learned the lessons of a free economy over 25 years.  And I believe it's essential in Washington if we're going to turn around the economy to have someone who knows how the economy works and who's spent time in the real economy and not someone whose sole professional experience is being a politician.  Nothing wrong being a politician, but let's send some citizens to Washington in addition to some politicians to Washington.  [cheers, applause]

I happen to think that the reason this recession was deeper than it could have been and the recovery is more tepid than it should have been is because the President just doesn't understand that his policies did the exact opposite of what the nation needed.  He said he wants to create jobs and create the conditions that would let employers add jobs.  But ask yourself this.

Did promising to raise taxes help to create jobs?  No.

Did Obamacare convince any small business to hire more people?  No.

If you're an energy intensive business, did cap and trade and talk about higher energy costs, prices cause anybody to add more jobs?  No.

Did Dodd-Frank, his financial regulatory reform, cause banks to give out more loans?  No.

On every dimension you can think of in this president's first two-and-a-half years in office, the actions he took made it harder for entrepreneurs to build businesses, for banks to loan money, for big businesses to invest in capital and in people.  And as a result the American people are still suffering, and that's why I predict in this place on this day that in November of 2012 President Obama will not carry the state of Iowa.  [cheers, applause]

Now I happen to believe after a lifetime of work in the private sector and then some service in the governmental sector, for only four years—  I liked my experience as a governor, it was a terrific experience, but I didn't inhale politics.  I'm still a business guy and a private citizen.  And I've learned from my business experience that there are a number of things an economy has to do if it's going to perform better than the other nations around us and allow Americans to continue to have a standard of living that leads the world.  Let me mention a couple of them.

You have to have tax rates that are comparable with the competing nations.

You have to have regulation and bureaucracy which is streamlined and modern and which encourages the private sector as opposed to burdening it.

You have to have trade policies that work for us not just for the other guy.

You have to have energy policies that are intent to get America free of our dependence on foreign oil.

You have to have the rule of law.  And you might say well we have the rule of law.  Well, when the president puts his hand on the scale of justice and says that we're going to give General Motors not to the senior lenders, but instead to the UAW you question whether you have the rule of law.  And when the National Labor Relations Board steps in and tells South Carolina you can't have a Boeing plant because you're a right-to-work state, you don't have the rule of law.

Number six, you have to have institutions that build human capital.  We're a capitalist nation, but that means not just capital of a physical nature, but capital of a human nature.  We've got to have great schools and universities, and immigration policies that bring in the best and brightest.

And finally, number seven, you have to have a government that doesn't consistently spend more money than it takes in.  You've got to balance your budget.  [cheers, applause]

Over these last several months we've watched people in Washington debate about what we should do about the debt in this country.  And there were a number of people on the other side of the aisle who consistently pleaded to raise taxes.  And the people on our side of the aisle said absolutely not. 

Let me tell you a number of the reasons.  One is we don't want to take more people out of people's pockets—money out of people's pockets.  I don't mean people in your pockets; I don't keep anybody in my pocket.  That's very, very small; exactly right.  We don't want to take more money out of people's pockets, number one.  Number two, we know if government takes money out of people's pockets, that's not going to help the economy.  And number three, government is already too big.  During the days of John F. Kennedy, government at all levels—the federal, state and local level—comprised about one quarter of our economy, 27-percent.  Today government at all levels comprises about 37-percent of the economy.  We're inching closer and closer to a nation that no longer has free enterprise.  And so we insisted that we cut federal spending, that we cap federal spending, and that we have a balanced budget amendment, and that is the right course for America if we're going to rein in the excessive growth of government.  [cheers, applause]

You know I don't know why the President is as misguided in managing our economy as he is.  Sometimes I wonder whether he takes his political inspiration from the social democrats of Europe.  I don't think Europe is working there; I sure don't think Europe will work here.  I happen to believe that we got it right and they got it wrong.  I believe in freedom and opportunity American-style.  [applause]  I believe in capitalism and free enterprise.  I believe in the Constitution as it was framed by the Founders.  [applause]

By the way, I like all the amendments, not just a few of them.  Those who've served in state government are particularly fond of the Tenth Amendment.  Those that don't know it, I'll give you the top line.  The Tenth Amendment says roughly this.  It says that those powers not specifically granted to the federal government are to be reserved by the states and the people.  And so when the President imposes Obamacare on the entire nation, he not only puts in place bad policy, he not only puts in place an entitlement we can't afford, he tramples on the principle of the Tenth Amendment to the Constitution, and that's why it's going to be repealed on day one of my administration if I'm lucky enough to be president.  [applause]

Let me tell you one more thing.  I believe in the American people.  I know a lot of people these days are cynical and skeptical.  I love this country and I love the country because of the people of this country.  I've had the chance to go across the country; I've met people across Iowa.  Last time around we visited a lot of counties here, made a lot of friends.  This is a fundamentally patriotic nation.  We love America.  Not just for our rocks and rills and templed hills, we love America because of the values that this nation has promoted around the world and preserved for ourselves, for our descendants and for our friends around the world.  We love America.  We show that love day in and day out, and one way we show it is when the national anthem is being played by placing our hand over our heart.  That tradition began during the days of FDR.  He asked us to put our hand over our heart in recognition of the blood that was shed by heroes proved in liberating strife who more than self their country loved and mercy more than life. 

We love this country, and because of that love of this country, I'm convinced that despite our challenges, and you know what they are.  Fourteen trillion dollars in debt.  Sixty-two trillion dollars in unfunded promises by government.  Jihadists that want to kill us.  Russia that's resurgent, with its energy resources.  China, that's now an assertive grand power.  We face real challenges in the world.  But I'm convinced that the patriotism of the American people, if combined with leaders that will actually tell the truth and live with integrity and who know how to lead America back to greatness, that we will rise to the occasion, overcome those challenges and remain as we have always been the greatest nation on Earth and the hope of the Earth.  Thank you so much.  Thank you.  Thank you.  Thanks you guys.  [applause]

Now I get to take a couple of questions here, so I'm going to take some questions back here.  Oh, you've got a written question here.

WOMAN: Gov. Romney, do you support scrapping the Social Security payroll cap so [that?the] rich people pay their fair share to the trust fund?

ROMNEY: Do I—, you have to repeat that please.

WOMAN: Do you support scrapping the Social Security payroll cap so that rich people pay their fair share to the trust fund?

ROMNEY: You know it's, it's become very popular—the question was do I support raising the cap on Social Security taxes so that rich people pay their fair share.  You know there was a time in this country that we didn't celebrate attacking people based on their success and when we didn't go after people because they were successful.  [cheers, applause]  And I happen to think, I watch this president, I've watched this president go across the country attacking people and I—  If you want to speak you can speak, but right now it's my turn.  So let me continue [applause], and that is this. 

All the streets in America are connected.  I've watched people attack Wall Street.  You know what?  We're connected.  We're not going to tear down other Americans.  We want to make sure people do pay their fair share.  Half the people in this country pay no income tax at all, alright.  So when we talk about fair share we've got to think about what is a fair share for the American people?  But this we know.  We don't want to raise taxes on the American people.  We don't want to grow government, because government is too large already.  We want to restrain the growth of government. 

And when it comes to Social Security and Medicare and Medicaid, the truth is the promises we're making 20 year olds, 30 year olds and 40 year olds have to be promises we can keep.  And you may say we should just raise everybody's taxes.  Do you know what the tax rate would have to be able to honor the promises of Social Security, Medicare and Medicaid if we just raise taxes and leave the programs as they are?  Right now those programs combined take a payroll tax out of your earnings of 15.3 percent.  That would have to rise to 44 percent. 
We're not going to do that.  And so—

MAN SHOUTING: Sir, I'm on Social Security.

ROMNEY: I'm glad you're on Social Security.

Hold on just a moment.  Hold on just a moment.  Hold on just a moment. 

MAN: [continues to shout]

ROMNEY: You know what, I get a chance; I'll let you speak in a moment.

MAN: You came here to listen to the people—

ROMNEY: No, I came here to speak, and you'll get to ask a question—.

MAN: [continues to shout]

ROMNEY: Hold on a second.  Hold on a second; I'll let you speak.  Hold on a second, let me—  Hold on a second.

MAN: [continues to shout]...strengthen Social Security for the future.  Two thirds of my income and my wife's income come from Social Security... 

ROMNEY: Let him talk; let him talk.  Go ahead.

MAN: ...We're also on Medicare.  It's a tremendous program.

ROMNEY: It's a great program.

MAN: [continues to shout]

ROMNEY: Let's let him finish.  Let's let him finish.

MAN: What are you going to do to strengthen Social Security, Medicare and Medicaid without cutting benefits?

ROMNEY: Alright, let's get his answer.  Okay you've had your chance.  Anything else you want to say? 

MAN: Well I want to see what you're going to say.  [audience laughter]

ROMNEY: The way this is going to work.  The way this is going to work is that you get to ask your question, and I get give my answer.

MAN: All right.

ROMNEY: If you don't like my answer, you can vote for someone else, but now it's my turn to give my answer. [applause]

You ready for my answer?

MAN: What's your answer?

ROMNEY: I'm not going to raise taxes.  That's my answer.  I'm not going to raise taxes.  [cheers, applause]  And if you want somebody that can raise taxes you can vote for Barack Obama, but let me tell you what Barack Obama's doing.  Barack Obama's killing this economy.  Barack Obama is why 25 million people don't have jobs and can't find jobs and the—

CHANTS FROM AUDIENCE: Wall Street greed.  Wall Street greed.  Wall Street greed.

MAN: By the way, Social Security...

ROMNEY: Okay, next question.  We got another question?  I'm going to get it over here.  Yes, sir?

MAN AND OTHERS: [continued shouting]

You've had your turn; I've had my turn.

MAN 2: As Governor of Massachusetts you closed corporate tax loopholes on big banks to raise revenue and balance the state budget.  If you were elected president, would you do the same thing and look at the revenue side of the equation to balance the federal budget?

ROMNEY: The question is as Governor of Massachusetts, I closed loopholes on big banks that were abusing our tax system, and would I do the same as president?  Let me tell you—.  Let's describe what is a loophole and what's raising taxes.  In my opinion a loophole is when someone takes advantage of a tax law in a way that wasn't intended by the legislation.  And we had, in my state for instance, we had a special provision for real estate enterprises that owned a lot of real estate, and it provided lower tax rates in certain circumstances, and some banks had figured out that by calling themselves real estate companies, they could get a special tax break.  And we said no more of that.  You're not going to game with the system.  And so if there are taxpayers who find ways to distort the tax law and take advantage of what I'll call loopholes in a way that are not intended by Congress or intended by the people, absolutely I'd close those loopholes.  But there are a lot of people who use the world loophole to say let's just raise taxes on people, and that I will not do.  I will not raise taxes.
 
MAN AND OTHERS: [continued shouting] ...fair share.

MAN 3: I've got a non-controversial question.  Real peaceful.  I'm a peacock farmer, and a school teacher—sorry about that—and I supplement my income as a peacock farmer.  And since the last election my peacock farm went away.  I was thriving, was going to add more people and did real good in the state of Iowa, kept everything here.  What can you assure me, if I support you, that perhaps that maybe you'll make small businesses like mine, not only mine but everyone in Iowa and the United States to be better?

ROMNEY: I can tell you this.  I'm not going to send you checks.

MAN 3: No I don't want...

ROMNEY: I'm not going to promise checks.  I know you don't want them, but I want to make sure people know that.

MAN 3: I want to earn it.

ROMNEY: I'm not going to do what almost every politician does when they get on this stage.  And I'm not talking about this stage; I mean figuratively.  When they get on the public stage what they do is get up to the American people and promise all sorts of free stuff and say I'm going to give you this, and it won't cost anything.  And that's just not the truth.  It's time in America to tell people the truth.  We have to earn what we spend.  We can't spend more than we earn year after year after year.  [applause, cheers]  We can't go to China and other nations and say give us your money, give use your money so we can spend more than we earn.  That's number one.

Number two.  I'm going to make America the most attractive place in the world to start a business, to grow a business, to expand a business of any place in the world, and I'm going to do that by making sure that our corporate tax rates are the same as corporate tax rates of other nations around us.  Right now they're the highest in the world.  I don't want them to be the highest in the world.  I want them to be competitive.  I want our regulations to be competitive and modern and up to date.  I want our trade policies to open up markets outside the U.S.. 

Look, agriculture is one of the biggest exports we have.  People in this state understand the importance of trade with other nations.  This president in two and a half years has not entered into any trade agreements with any other nations.  That doesn't help us add jobs.  Other nations in Europe and in Asia have put together some 40 different trade agreements to open up trade.  We need to do the same thing.   I'll make it easier for you to sell peacocks, to sell peacocks to other nations if people want to buy—what do they buy?  Do they buy the feathers or what to they buy?

MAN 3: ...feathers.  I'm selling them over to the U.K..

ROMNEY: He's selling feathers to the U.K..  I'll help you get feathers to the...[laughs]  Thank you.

MAN 3: From Iowa.

ROMNEY: From Iowa.  I want to make this a place that's great for business because business is good for people and for jobs.  We want more good jobs and higher incomes and I want to make this a better place for both.  Thank you.

Back there.  Let's ask that guy.

MAN 4: Gov. Romney I have a noncontroversial question as well. 

ROMNEY: We've got a man back here who's asking a question.

MAN 4: Can I be next?

ROMNEY: No.

MAN IN AUDIENCE: Make Wall Street pay.

MAN 5: I'm a senior on Social Security; I haven't had a raise in two years.  Congress has voted itself a raise both years.  Why?

ROMNEY: That's a darned good question isn't it.  Alright the question was this.  He said he's a senior citizen, been on Social Security and the last two years he hasn't seen a raise.  Congress has voted itself a raise in each of the last two years. 

It sure would make an awful lot of sense wouldn't it, for Congress to link their pay to what's happening to people on Social Security and retirement.  Congress shouldn't get a better deal than the people on Social Security.  [applause]

By the way, all this discussion about entitlements and Social Security and Medicare, recognize, I and the other people who are talking about this want to make sure we can keep those programs and that we assure that the next generations know they will have those programs.  And I will to make sure—

MAN IN AUDIENCE: Scrap the cap then.

ROMNEY: You want to raise taxes. 

MAN IN AUDIENCE: Scrap the cap.

ROMNEY: You want to raise taxes.  That's your right.  Vote for somebody who wants to raise taxes.

MORE SHOUTING FROM AUDIENCE.

MAN: We're not going to vote for you then if that's what

ROMNEY: That's fine.  That's the nation of a free society. 

MORE SHOUTING FROM AUDIENCE.

ROMNEY: Look, we have up here a group of people who think we should raise taxes in order to pay for their benefits.  How many agree?

AUDIENCE: No [and hubbub].

ROMNEY: Okay, you've got your answer.  I don't agree with you.  So your turn has been heard, you've got your chance to speak; I've got my chance to speak.

MAN 4: I have not been heard, Gov. Romney. 

ROMNEY: I'm going to take one more question.

MAN 4: Gov. Romney I've been asking a non-controversial—

ROMNEY: What's your name?

MAN 4: My name is Daniel Symonds, I'm 23 years old.

ROMNEY: Daniel Symonds, you're 23 and where are you from?  Who brought you here? 

MAN 4: Social Security—

ROMNEY: Who are you working with? 

MAN 4: Myself. 

ROMNEY: You've got a little video camera here.

MAN 4: Social Security legally cannot add a single dime to the deficit.  Do you agree, do you agree—I'm also a teacher—do you agree that Social Security should take no part, no part in deficit reduction negotiations?  That Social Security should take no part in deficit reduction negotiations?

ROMNEY: That's your question?

MAN 4: That's my question.

ROMNEY: Okay, can I answer?

MAN 4: Answer it.

ROMNEY: Do I believe that Social Security should take no part in deficit reduction negotiations.  Is that the question?

MAN 4: Because it cannot add to the deficit.

ROMNEY: And the answer is this.  Social Security, Medicare and Medicaid account for about half of federal spending. 

MAN 4: Not the deficit.

AUDIENCE INTERJECTION: A lie.

Let him talk.

ROMNEY: Just hold on.  About half of federal spending.  And if we are ultimately, not just this year, but over the coming decades going to be able to balance our budget and not spend more than we take in we have to make sure that the promises we make in Social Security, Medicaid and Medicare are promises we can keep.  And there are various ways of doing that.  One is we could raise taxes on people.  That's not the way—

AUDIENCE MEMBERS: Corporations.

Corporations.

ROMNEY: Corporations are people my friend.  We could raise taxes on—

MAN IN AUDIENCE: No they're not.

ROMNEY: Of course they are.  Everything corporations earn ultimately goes to people.

LOUD LAUGHS FROM SEVERAL PEOPLE IN AUDIENCE.

ROMNEY: Where do you think it goes?

AUDIENCE MEMBERS: In their pocket.

ROMNEY: Whose pockets?  Whose pockets?  People's pockets.  Okay.  Human beings my friend.

So number one you can raise taxes.  You can raise taxes.  That's not the approach I would take.

Number two you can make sure that the promises you make are promises that we can keep.  And in my view the areas that you have to consider are higher income people receiving less rapid growth in their earned benefits, in their inflators.  If you don't agree with that; you want to give wealthy people a bigger portion, that's your right.  I think we should have what's known as progressive indexing.  I think we also should consider a higher retirement age.  Those are things that should be considered as part—

AUDIENCE MEMBERS: [more shouting]

ROMNEY: That's my view.  You may disagree with it; that's my view.  But my view is we do not make promises we cannot keep.

You guys, I want to say this.  I appreciate the chance to be with you.  We've got a few folks up front who got here early to make sure that they could make their voice heard.  My guess is they won't be voting for me.  That's fine.  We have a lot of people running for office.  They won't be voting for any of the Republicans.  They can vote for President Obama, but you guys are going to be voting for the next president of the United States, a person who believes in America, a person who will balance our budget, a person who will not raise taxes, and I am that person.  Thanks you guys.  Great to be with you.  [cheers, applause]


Transcript Copyright © 2011 Eric M. Appleman/Democracy in Action.