GOVERNOR ROMNEY TALKS ABOUT THE ECONOMY AND MICHIGAN

Governor Romney: Washington Is Fundamentally Broken; We Cannot Give Up On Jobs In Michigan And Across The Country (CBS' "Face The Nation," 1/13/08):

CBS' Bob Schieffer: "There is no question that Michigan is in recession. Do you think, Governor, that the nation is in a recession at this point?"

Governor Romney: "Well, I think the nation is headed towards a recession. I think that can be diverted. But I think there are going to be some lessons learned from here in Michigan. For 10 years, Washington has watched what's going on in Michigan, has seen a one-state recession, and has frankly been either indifferent or incapable of acting.

"Washington is fundamentally broken. And as they've seen what's happened here to the auto industry and other industries, they've just been paralyzed, not taking action to get Michigan on track again. And if they can't fix Michigan, they won't fix the national economy. And that's why I believe it's so important for us to come together to help the ailing auto industry and other industries in this state get back on their feet, and make sure that what was once the envy of the nation as a manufacturing and technology center is once again."

Schieffer: "Well, John McCain says that some of the jobs, or he says all these jobs that have been lost in Michigan, simply aren't coming back. Isn't that basically the truth? I mean, these manufacturing jobs that are going overseas, you're not going to get them back. You say that you can get them back. How exactly do you plan to do that, Governor?"

Governor Romney: "Well, I'll tell you one thing. The last thing you need in a state like Michigan is more pessimism. And if he's saying those automotive jobs are not coming back, well, how about the jobs that are still here? How about the hundreds of thousands of people who still work in the automotive sector? Are they all going to lose their jobs too? Or are we going to say it's simply unacceptable to us to have a major sector of the economy, transportation, turned over to people around the world?

"I believe we can come back. I believe this industry can become the leader in the world again. It's going to take substantial investment in innovation and technology, new products, new science, developing the cars and the transportation vehicles of the future."…

To watch Governor Romney, please see: http://www.youtube.com/watch?v=GUiyaaXA-ps

Governor Romney: I'm Not Willing To Write Off Jobs (CNN's "Late Edition," 1/13/08):

Governor Romney: "Perhaps, but the reality is this, I'm not going to give up on any jobs. And I recognize of course industries change. I've been in the business world 25 years. Senator McCain has never been in the business world.

"But what I know is that there are many, many industries such as the automotive industry that politicians in Washington simply write off. And they say, 'Well, there's nothing that can be done about Michigan. It's going through a one-state recession.' That's been going on for 10 years, and it's frankly inexcusable for Washington politicians to stand back, and say, 'Well, Michigan's in trouble, tough for the auto industry,' and not do anything about it.

"And there is action that can make it easier for the auto industry and allow the domestic auto industry to preserve the jobs they have and actually lead in some new areas that can provide new products and new opportunities for citizens here. So, I'm not going to be pessimistic about the future. I'm not willing to write off the hundreds of thousands of jobs that are still in the automobile industry, and say they're all going away. I'm going to fight for them, and do what I did in the private sector – take action. Look at Washington. What have they done to help the domestic auto industry? They gave it CAFE standards, which hurt. John McCain and Senator Lieberman are talking about a new form of tax on energy in this country, which would make it even harder on the domestic companies. Look, you can't keep on throwing anvils at Michigan and the auto industry and then say how come they're not swimming well?"

To watch Governor Romney, please see: http://www.youtube.com/watch?v=s8OWL1adaHM

Governor Romney On His Economic Strategy (CNN's "Late Edition," 1/13/08):

CNN's Wolf Blitzer: "Let's talk about fears of a recession in the United States. There's now talk the President might want to put forward some sort of economic stimulus package to try to create some jobs and avoid a recession. If you were President right now, Governor, what would be your immediate first step that you would take?"

Governor Romney: "Well, immediately, I'd go to try to and get a reduction on taxes on middle-income Americans. Specifically, I proposed having people who earn under $200,000 a year be allowed to save their money tax-free. It means no tax on interest, dividends or capital gains. It keeps more money in their pockets. It also means that we have more capital going into the marketplace, available for business start-ups as well as for homes. I'd also go aggressively after the housing market, to make sure that servicing organizations combine in some cases, perhaps forming cooperatives to work together with homeowners, to keep homes that are absolutely not necessary going into foreclosure to keep them with homeowners in them so that we don't dump housing product into the housing market and cause a further reduction in housing prices."
Blitzer: "So for families earning under $200,000 a year, you'd recommend some sort of immediate tax cut. Is that right?"

Governor Romney: "Exactly right. This is middle-income Americans. These are where 95% of Americans live, get their tax rates down, allow them to save for the future, allow them to make investments in their homes and be able to save for college. The best thing we can do is keep money in the homes of the American people."

Blitzer: "Some economists have suggested a reduction in corporate taxes to try to stimulate the economy, create jobs, encourage foreign companies to come invest in the United States, create jobs here. Is that a good idea?"

Governor Romney: "It is a good idea. It's something I've been proposing for many months. We have a roughly 35% corporate income tax rate. It's almost tied with Japan, which is the highest in the world. Nations like Ireland have learned the game. They've put the rate down at half of ours or less and have attracted a lot of jobs. The challenge with a corporate tax cut is it takes a while to have an impact. It has a significant positive impact over time. It's probably not likely to have an immediate boost, because it takes a while for companies to make investment decisions, but it is a good idea. But I think on this recessionary front, we need something that's immediate that moves quite quickly the needle to increase the savings and investments by American people."

To watch Governor Romney, please see: http://www.youtube.com/watch?v=kQ70gsgi8WY