1st Obama-Romney debate

Are we going to double-down on the top-down economic policies that helped to get us into this mess?

But, number one, preexisting conditions are covered under my plan.

And the essence of the plan is that you would turn Medicare into a voucher program.

I used to consult to businesses -- excuse me, to hospitals and to health care providers.

As a businessperson, I had to have -- I need to know the regulations.

One is to simply leave a whole bunch of people uninsured and let them fend for themselves, to let businesses figure out how long they can continue to pay premiums until finally they just give up, and their workers are no longer getting insured, and that's

But you also had banks making money hand over fist, churning out products that the bankers themselves didn't even understand, in order to make big profits, but knowing that it made the entire system vulnerable.

But I also want to close those loopholes that are giving incentives for companies that are shipping jobs overseas.

I know that you and your running mate keep saying that and I know it's a popular thing to say with a lot of people, but it's just not the case.

Well, that's how the commission -- bipartisan commission that talked about how we should move forward suggested we have to do it, in a balanced way with some revenue and some spending cuts.

Number four, get us to a balanced budget.

Now, in order for us to do it, we do have to close our deficit, and one of the things I'm sure we'll be discussing tonight is, how do we deal with our tax code?

And this is where there's a difference, because Governor Romney's central economic plan calls for a $5 trillion tax cut -- on top of the extension of the Bush tax cuts -- that's another trillion dollars -- and $2 trillion in additional military spe

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 finan

But I wouldn't designate five banks as too big to fail and give them a blank check.

AARP thinks that the -- the savings that we obtained from Medicare bolster the system, lengthen the Medicare trust fund by eight years.

So 77 government programs, everything from aircrafts that the Air Force had ordered but weren't working very well, 18 government -- 18 government programs for education that were well-intentioned, not weren't helping kids learn, we went after medical frau

There's no question in my mind that if the president were to be reelected you'll continue to see a middle-class squeeze with incomes going down and prices going up.

It's just -- it's -- we've got -- when the president took office, 32 million people on food stamps; 47 million on food stamps today; economic growth this year slower than last year, and last year slower than the year before.

I want to provide tax breaks for companies that are investing here in the United States.

When it comes to our tax code, Governor Romney and I both agree that our corporate tax rate is too high, so I want to lower it, particularly for manufacturing, taking it down to 25 percent.

The first two weeks she's got them, some of them sitting on the floor until finally they get reassigned.

It's energy and trade, the right kind of training programs, balancing our budget and helping small business.

So now I want to hire another 100,000 new math and science teachers, and create 2 million more slots in our community colleges so that people can get trained for the jobs that are out there right now.

$716 billion we were able to save from the Medicare program by no longer overpaying insurance companies by making sure that we weren't overpaying providers.

$716 billion we were able to save from the Medicare program by no longer overpaying insurance companies by making sure that we weren't overpaying providers.

But in order for us not to lose revenue, have the government run out of money, I also lower deductions and credits and exemptions, so that we keep taking in the same money when you also account for growth.

And this is where there's a difference, because Governor Romney's central economic plan calls for a $5 trillion tax cut -- on top of the extension of the Bush tax cuts -- that's another trillion dollars -- and $2 trillion in additional military spe

So 77 government programs, everything from aircrafts that the Air Force had ordered but weren't working very well, 18 government -- 18 government programs for education that were well-intentioned, not weren't helping kids learn, we went after medical frau

Now, so what this board does is basically identifies best practices and says, let's use the purchasing power of Medicare and Medicaid to help to institutionalize all these good things that we do.

And the answer is, yes, we can help, but it's going to take a different path, not the one we've been on, not the one the president describes as a top-down, cut taxes for the rich.

That is, I want to bring down rates.

ROMNEY: ... people, right, not for current retirees.

The segments as I announced in advance will be three on the economy and one each on health care, the role of government and governing, with an emphasis throughout on differences, specifics and choices.

There will be six roughly 15-minute segments with two-minute answers for the first question, then open discussion for the remainder of each segment.

LEHRER: That is a terrific segue to our next segment, and is the role of government.

But -- but what it did do is to -- if you extrapolated how much money we're talking about, you'd look at cutting the education budget by up to 20 percent.

How we pay for that, reduce the deficit, and make the investments that we need to make, without dumping those costs onto middle-class Americans, I think is one of the central questions of this campaign.

So now I want to hire another 100,000 new math and science teachers, and create 2 million more slots in our community colleges so that people can get trained for the jobs that are out there right now.

Now, if you take such an unbalanced approach, then that means you are going to be gutting our investments in schools and education.

Number three, make sure our people have the skills they need to succeed and the best schools in the world.

And ironically, if you repeal Obamacare, and I have become fond of this term, "Obamacare," if you repeal it, what happens is those seniors right away are going to be paying $600 more in prescription care.

$716 billion we were able to save from the Medicare program by no longer overpaying insurance companies by making sure that we weren't overpaying providers.

This is, theoretically now, a second segment still on the economy, and specifically on what to do about the federal deficit, the federal debt.

But our training programs right now, we've got 47 of them, housed in the federal government, reporting to eight different agencies.

Let's start the economy, segment one, and let's begin with jobs.

So, in the middle of the Civil War, Abraham Lincoln said, let's help to finance the Transcontinental Railroad, let's start the National Academy of Sciences, let's start land grant colleges, because we want to give these gateways of opportunity for

Or do we embrace a new economic patriotism that says America does best when the middle class does best?

He said he and his son calculated how much they pay in taxes, federal income tax, federal payroll tax, state income tax, state sales tax, state property tax, gasoline tax.

I'm Jim Lehrer of the "PBS NewsHour," and I welcome you to the first of the 2012 presidential debates between President Barack Obama, the Democratic nominee, and former Massachusetts Governor Mitt Romney, the Republican nominee.

This is a -- this is a tax in and of itself.

So to finish quickly, briefly, on the economy, what is your view about the level of federal regulation of the economy right now?

The idea, which was originally presented by Congressman Ryan, your running mate, is that we would give a voucher to seniors and they could go out in the private marketplace and buy their own health insurance.

But you also had banks making money hand over fist, churning out products that the bankers themselves didn't even understand, in order to make big profits, but knowing that it made the entire system vulnerable.

I was in Dayton, Ohio, and a woman grabbed my arm, and she said, "I've been out of work since May.

If you believe that we can cut taxes by $5 trillion and add $2 trillion in additional spending that the military is not asking for, $7 trillion -- just to give you a sense, over 10 years, that's more than our entire defense budget -- and you think that by

It's an honor to be here with you, and I appreciate the chance to be with the president.

Now, let's move to health care where I know there is a clear difference, and that has to do with the Affordable Care Act, Obamacare.

My grandparents did.

I don't have a tax cut of a scale that you're talking about.

They can buy a computer for their kid who's going off to college, which means they're spending more money, businesses have more customers, businesses make more profits, and then hire more workers.

Well, that's how the commission -- bipartisan commission that talked about how we should move forward suggested we have to do it, in a balanced way with some revenue and some spending cuts.

I'm Jim Lehrer of the " PBS NewsHour," and I welcome you to the first of the 2012 presidential debates between President Barack Obama, the Democratic nominee, and former Massachusetts Governor Mitt Romney, the Republican nominee.

When it comes to making college affordable, whether it's two-year or four-year, one of the things that I did as president was we were sending $60 billion to banks and lenders as middlemen for the student loan program, even though the loans were gua

And it also says that you're going to have to get rebates if insurance companies are spending more on administrative costs and profits than they are on actual care.

Entitlements.

You said, "Look, I'm going to extend the tax policies that we have now; I'm not going to raise taxes on anyone, because when the economy is growing slow like this, when we're in recession, you shouldn't raise taxes on anyone."

And when it comes to education what I've said is we've got to reform schools that are not working.

We've going to make sure that you've got to have a living will so -- so we can know how you're going to wind things down if you make a bad bet so we don't have other taxpayer bailouts.

First, we've got to improve our education system and we've made enormous progress drawing on ideas both from Democrats and Republicans that are already starting to show gains in some of the toughest to deal with schools.

He said he was going to broaden the base.

Every school district, every state should make that decision on their own.

But I'm not going to reduce the share of taxes paid by high- income people.

People in the coal industry feel like it's getting crushed by your policies.

We're a nation that believes that we're all children of the same god and we care for those that have difficulties, those that are elderly and have problems and challenges, those that are disabled.

What you did instead was to push through a plan without a single Republican vote.

And we know where it came from: two wars that were paid for on a credit card; two tax cuts that were not paid for; and a whole bunch of programs that were not paid for; and then a massive economic crisis.

Number four, get us to a balanced budget.

$716 billion we were able to save from the Medicare program by no longer overpaying insurance companies by making sure that we weren't overpaying providers.

But our training programs right now, we've got 47 of them, housed in the federal government, reporting to eight different agencies.

One is to simply leave a whole bunch of people uninsured and let them fend for themselves, to let businesses figure out how long they can continue to pay premiums until finally they just give up, and their workers are no longer getting insured, and

They're now going to have to be paying copays for basic checkups that can keep them healthier.

But in order for us not to lose revenue, have the government run out of money, I also lower deductions and credits and exemptions, so that we keep taking in the same money when you also account for growth.

Do you see a major difference between the two of you on Social Security?

My cutbacks will be done through attrition, by the way.

And using that money, we were actually able to lower prescription drug costs for seniors by an average of $600, and we were also able to make a -- make a significant dent in providing them the kind of preventive care that will ultimately save money

The idea, which was originally presented by Congressman Ryan, your running mate, is that we would give a voucher to seniors and they could go out in the private marketplace and buy their own health insurance.

OBAMA: But the fact of the matter is that some of the prescriptions that he's offered, like letting you buy insurance across state lines, there's no indication that that somehow is going to help somebody who's got a pre-existing condition be able t

The problem with raising taxes is that it slows down the rate of growth.

What we've said is to states, we'll give you more money if you initiate reforms.

Social Security is structurally sound.

It's just -- it's -- we've got -- when the president took office, 32 million people on food stamps; 47 million on food stamps today; economic growth this year slower than last year, and last year slower than the year before.

And it wasn't just that small businesses were seeing costs skyrocket and they couldn't get affordable coverage even if they wanted to provide it to their employees.

Now, you know, that may not seem like a big deal when it just is, you know, numbers on a sheet of paper, but if we're talking about a family who's got an autistic kid and is depending on that Medicaid, that's a big problem.

You had loan officers were -- that were giving loans and mortgages that really shouldn't have been given, because the folks didn't qualify.

And it includes within it a number of provisions that I think has some unintended consequences that are harmful to the economy.

Now, Governor Romney has ruled out revenue.

The federal government taking over health care for the entire nation and whisking aside the 10th Amendment, which gives states the rights for these kinds of things, is not the course for America to have a stronger, more vibrant economy.

And how do we make sure that we are reducing spending in a responsible way, but also, how do we have enough revenue to make those investments?

And over the last four years, small- business people have decided that America may not be the place to open a new business, because new business startups are down to a 30-year low.

The president has a view very similar to the view he had when he ran four years, that a bigger government, spending more, taxing more, regulating more -- if you will, trickle-down government -- would work.

First of all, I don't have a $5 trillion tax cut.

And so I've put forward a specific $4 trillion deficit reduction plan.

And I worked with Democrats and Republicans to cut a trillion dollars out of our discretionary domestic budget.

In fact we've seen layoffs of hundreds of thousands of teachers over the last several years, and Governor Romney doesn't think we need more teachers.

So now I want to hire another 100,000 new math and science teachers, and create 2 million more slots in our community colleges so that people can get trained for the jobs that are out there right now.

First of all, the Department of Energy has said the tax break for oil companies is $2.8 billion a year.

He said he and his son calculated how much they pay in taxes, federal income tax, federal payroll tax, state income tax, state sales tax, state property tax, gasoline tax.

But I also want to close those loopholes that are giving incentives for companies that are shipping jobs overseas.

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 cr

The secretary of defense has said these would be even devastating.

But there's still a problem, because what happens is, those insurance companies are pretty clever at figuring out who are the younger and healthier seniors.

You've said the same thing, you're going to simplify the tax code, broaden the base.

Many of the legislative functions of the federal government right now are in a state of paralysis as a result of partisan gridlock.

OBAMA: When I walked into the Oval Office, I had more than a trillion-dollar deficit greeting me.

It's called premium support, but it's understood to be a voucher program.

We've got a program called Race to the Top that has prompted reforms in 46 states around the country, raising standards, improving how we train teachers.

ROMNEY: Well, I would repeal and replace it.

But, ultimately, part of being principled, part of being a leader is, A, being able to describe exactly what it is that you intend to do, not just saying, "I'll sit down," but you have to have a plan.

What are the major differences between the two of you about how you would go about creating new jobs?

And how do we make sure that we are reducing spending in a responsible way, but also, how do we have enough revenue to make those investments?

OBAMA: 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 milita

And using that money, we were actually able to lower prescription drug costs for seniors by an average of $600, and we were also able to make a -- make a significant dent in providing them the kind of preventive care that will ultimately save money

First, we've got to improve our education system and we've made enormous progress drawing on ideas both from Democrats and Republicans that are already starting to show gains in some of the toughest to deal with schools.

The segments as I announced in advance will be three on the economy and one each on health care, the role of government and governing, with an emphasis throughout on differences, specifics and choices.

As a matter of fact, free people and free enterprises trying to find ways to do things better are able to be more effective in bringing down the cost than the government will ever be.

I'm Jim Lehrer of the "PBS NewsHour," and I welcome you to the first of the 2012 presidential debates between President Barack Obama, the Democratic nominee, and former Massachusetts Governor Mitt Romney, the Republican nominee.

Number four, get us to a balanced budget.

Good evening from the Magness Arena at the University of Denver in Denver, Colorado.

How we pay for that, reduce the deficit, and make the investments that we need to make, without dumping those costs onto middle-class Americans, I think is one of the central questions of this campaign.

So, in the middle of the Civil War, Abraham Lincoln said, let's help to finance the Transcontinental Railroad, let's start the National Academy of Sciences, let's start land grant colleges, because we want to give these gateways of opportunity for

So at Cleveland Clinic, one of the best health care systems in the world, they actually provide great care cheaper than average.

And as a consequence we'll have a better trained workforce and that will create jobs because companies want to locate in places where we've got a skilled workforce.

Number four, get us to a balanced budget.

Number two, open up more trade, particularly in Latin America, crack down on China, if and when they cheat.

Second, in that line that says we are endowed by our creator with our rights, I believe we must maintain our commitment to religious tolerance and freedom in this country.

Electric rates are up.

And over time, if traditional Medicare has decayed or fallen apart, then they're stuck.

We have to work on a collaborative basis, not because we're going to compromise our principle, but because there's common ground.

It's going to have to be tweaked the way it was by Ronald Reagan and Speaker -- Democratic Speaker Tip O'Neill.