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Mitt Romney said Tuesday that cutting spending slows growth in the economy -- a rhetorical slip more akin to an argument a Democrat might make than a Republican.
Speaking in Shelby Township, MI, the former Massachusetts governor took a question about the Simpson-Bowles fiscal commission empaneled by President Obama to address the nation's deficit and debt issues. In his response, he said that addressing taxes and spending issues are essential.
"If you just cut, if all you're thinking about doing is cutting spending, as you cut spending you'll slow down the economy," he said in part of his response. "So you have to, at the same time, create pro-growth tax policies."
That sort of comment was sure to raise the eyebrows of fiscal conservatives in the GOP, who have long preached a message of fiscal restraint as a path to economic growth.
"It's hogwash. It confirms yet again that Romney is not a limited government conservative," said Andy Roth, the vice president for government affairs at the fiscally conservative Club for Growth. "The idea that balancing the budget would not help the economy is crazy. If we balanced the budget tomorrow on spending cuts alone, it would be fantastic for the economy."
Romney is set to unveil a new, more detailed economic plan later this week, especially as he works to shore up primary victories in Arizona and his native Michigan.
But he's offered an insight into his thinking by endorsing a previous fiscal plan (the Cut, Cap and Balance plan, which calls for cuts to spending, a cap on the growth of government spending, and a balanced budget amendment) that doesn't necessarily rely on accompanying tax reforms.
The Obama administration has been particularly clear about its view that cutting spending would strangle off any hope of an economic recovery. Jack Lew, the new White House chief of staff made that point in a Feb. 12 appearance on "Meet the Press."
"I think that there's pretty broad agreement that the time for austerity is not today," Lew said. "We need to be on a path where over the next several years we bring our deficit under control. Right now we have a recovery that's taking root and if we were to put in austerity measures right now, it would take the economy in the wrong way."
Romney's comment, if nothing else, would represent a rhetorical departure from the rest of the Republican Party, which has done battle with the Obama administration over the past year about the best course for economic growth.
"We’re listening to the people who sent us here to cut spending so we can grow our economy," House Speaker John Boehner (R-OH) said just less than a year ago, at the height of a fight between Obama and congressional Republicans over funding the government.
***UPDATE*** Romney spokesman Ryan Williams commented on the comments:
The governor’s point was that simply slashing the budget, with no affirmative pro-growth policies, is insufficient to get the economy turned around. However, he believes that budget cuts – especially in the context of President Obama’s unprecedented spending explosion – are a step in the right direction. As he made clear in his economic plan, he believes that spending cuts that reduce the size of government and balance the budget are crucial to economic growth and job creation.
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I can't wait to hear about Romney's new and improved tax plane coming out latter this week. Maybe Cain's 999 deal or maybe Perry's postcard reborn. Anything is possible, but one thing is for sure, their will be a tax cut for the rich, and a tax increase for everyone else.
It's true... the left is running out of money trees to shake. The government has dried up... hmm... who else? I know, let's get those evil wealthy people!! Because punishing people for being productive makes SO much sense. (Note the sarcasm.) I'm all for closing loopholes and making the tax system fairer. But to me, fair doesn't mean fining people for being successful. It means being equally (or more equally) burdened. Seriously, at what income bracket does someone turn evil? I'm not sure how much I'm allowed to make before I become the bad guy. I'd like to avoid that...
Rick Santorum was named among the most corrupt politicians in 2005-2006 by a Washington watchdog group, Citizens for Responsibility and Ethics in Washington. Watch the Gang of Four starring Rick Santorum. It will show a glimpse of how corrupt he is. horrendous what happened to woment and young girls.
Yawn, just more BS from the baggers. Be glad when Obama sends them all back home wondering what happened to themselves. And with the amount of lost votes the baggers cost themselves, it could very well happen that way.Weeeeeeeeeeeeeeeeeeeeeeee.
This guy is doing everything he can to derail his own campaign.
everyday, the likelihood that he will be the nominee is diminished just a little bit more
True. The only thing that's keeping him in the race is the fact that the other candidates are not any better! You have to pity the poor Republican voters. Not!
The problem in Europe is applying a policy of austerity to a problem of no growth; The problem in Greece begain with AIG selling Greece bad investments. Greece also had the problem of tax loopholes and tax evasion. Austerity does not solve the problems of growth and revenue. Yes, we should consider Greece because it is an example of the failure of austerity and tax evasion to produce revenue. The Republicans have it wrong. Time to stop applying the European austerity model to America and apply the successful Roosevelt new deal approach.
Yes, we should consider Greece because it is an example of the failure of austerity and tax evasion to produce revenue.
^ Correct.
Austerity as a model will end with the re-election of Obama.
However it would also end if Romney were elected (he won't be)
Why?
Because he would drop the bs right wing rhetoric, once actually responsible for the result.
Proof?
Did W. do austerity?
Did Reagan do austerity?
No...neither one did.
Presidents don't destroy their own economies intentionally - because their own administrations go down the toilet with it.
Clinton, whose budgets the GOP denounced didn't do austerity either - but he did raise taxes on the rich - which helped to balance the budget along with revenue from 26 million jobs created during his 8 years.
Trickle down does work, but only when you give the money to an athlete who has a posse.
Romney is right. Cutting spending will slow down the economy. Of course, being responsible and doing the right thing isn't always popular. The bottom line is that it is absurd to think that we can continue spending like this without any problems. We will be force to cut spending at some point, but it won't be pretty. Let's get a solid fiscal foundation instead of creating another bubble.
We could cut the military budget in half, and if we bring troops home and stop starting new wars, we would still have an awesome military, and we could start paying down the national debt instead of borrowing more money. Also, we should cut out the expense of tax breaks and subsidies to companies unless 75% or more their workforce are United States citizens employed in the US.
Those things would barely make a dent. Even with doing all of the things, we would still have massive deficits.
Barely make a dent? In 2010 the GOP fought to cut funding to NPR claiming that $5 million/year they received was so wasteful and.....every little bit counts.
But cutting the DOD budget in HALF and ending the war won't make a dent?
Keep trying to spin the economy republicans. It's not doing you any good. Romney finally spoke the truth and that will condemn him in the republican party. Bye, Bye Willard.
^ Truth. The GOP knows that cutting the budget during a recession by definition would prolong the recession by shrinking the GNP.
That's exactly what they wanted to do. They wanted the recession to continue. They did not want Obama to end it.
Romney apparently thinks he could actually be President one day - so he was actually semi-honest for a minute and admitted that you can't cut your way to prosperity. (a completely idiotic premise that has no precedence in US history from FDR to Reagan)
Now having admitted the truth - here come his supporters to try and twist what he said inside out.
-> One poster on this forum even tried to pretend that Romney "meant", that to balance the budget you must both cut spending and *raise taxes*.
Get real!
Like h$ll would Romney ever agree with that interpretation of his comment. Admitting taxes need to be higher is just as much anathema to the delusional GOP as admitting that you can't cut your way out of a recession.
So the spinners can keep spinning. You will never make an honest man out of a pathological liar like Willard.
And Flipper Romney can keep flipping. He's never going to be President.
Cutting the budget is almost as bad for an economy as raising taxes. The problem is that it is impossible to continue this fraud of an economy indefinitely.
^ Of course, so what you have to do is stimulate the economy during recession, and then back off during a time of growth.
This is the course that President Obama has set - to sustain economic growth and promote employment by reducing our debt gradually over time.
This is the opposite of GOP rhetoric which if followed literally would hack social security, medicare, infrastructure and educational budgets to pieces, throw the economy back into recession and make the debt worse.
This is what IS HAPPENING in Europe under austerity.
Riiiight! And that's why you were so quiet during the Bush administration! Because they were soooo fiscally responsible.
I am a staunch Republican gone Independent! The GOP is a godless joke now. Gone are the days when it supposedly had a monopoly on morality... We have a MORMAN as the "chosen one" for the nomination! WHAT! Notice that no media outlets or ANYONE are even talking about what they even believe in! They are cultists, for Pete's sake! They believe that Satan and Jesus are twin brothers! The cult is heretical by every definition! Do research! Look up what they believe in. And they call Obama the anti-Christ! What is our country coming to? Ron Paul is the only man up there who makes sense, is standing up for the Constitution, and is beholden to no one other than himself, the American people, and God. That's why he got my vote this year! Go, Ron Paul! You're an inspiration!
I like Mormons, all my Mormon neighbors and friends are great people with a profound sense of community. But it is possible they are an exception!
I also like Ron Paul and believe that if he were president he would have difficulty getting some of his better ideas passed. Obama has that same issue! But I believe in states rights and that we have an overburdened federal govt, which is not functioning as it should due to the task they have tried to take away from the states. And living in Texas 120 miles from the border, I see daily struggles to deal with the illegal immigration issue which Obama has not fixed. Deporting them is great, not finding a better way to keep them out is bad!
And RP would like to cut congress pay, perks and travel on our dime. As well as cut his POTUS pay to less than 40k a year. Its a good start!
@Bob in Dallas: Are you suggesting the federal government get rid of income taxes and just print more money? When they print more money, that is called inflation, and it makes every dollar you and I have worth less. There is still only one pie, and you want them to cut it into smaller pieces.
Thats Macroeconomics 101. Duh...
Romney has now proven what conservatives already knew, he's still a leftist Republican ala Nixon or Rockefeller. He would be almost as disastrous as Obama.
Liberalism is a disease that has done more to destroy America and our personal liberties than any enemy has ever accomplished.
Nah, Romney has proven that despite being a Republican, he hasn't quite lost his sense that what is good for our nation is more important than the bumper-sticker slogans that the rest of the Republicans are falling over each other about.
Liberals didn't bring us the "USA Patriot Act." Liberals didn't ignore warnings of 9-11 because they needed to cut brush in Texas. Liberals didn't lie about WMD and start a war against a nation that never attacked us. Liberals did not create an "ownership society" that caused the worst recession in the nation's history, second only to the Great Depression. Liberals DID save or automobile industry. Liberals DID bring us out of the Great Recession that Liberals did not cause. Liberals DID bring us the chance to have medical coverage even if we are human and sometimes get sick.
So if you want to say things about Liberals, at least try to get some of your facts right.
Warren, I would say you should get your facts right since you have yet to make a correct and factual statement.
Let's start with the Patriot Act
The Act was passed in the House by 357 to 66 (of 435) and in the Senate by 98 to 1 and was supported by members of both the Republican and Democratic parties.
Obama signed an extension of the Patriot Act in 2010
President Barack Obama, on Saturday, February 27, 2010, signed into law legislation that would temporarily extend for one year, three controversial provisions of the Patriot Act that had been set to expire:[174] [175] [176]
The so-called terror warning was the same intelligence briefing given to Clinton while he was still president and contained NO new intelligence on a potential attack by Bin Laden in the US
http://www.fas.org/irp/news/2004/04/wh041004b.html
Bush never lied about WMD- another favorite lie of the left.
Afghanistan did attack us through Mullah Omar's partnership with Bin Laden
Iraq had been in Material Breach of a truce for years prompting Clinton on several occasions to prepare to resume hostilities with Iraq. Bush did take that legal action with full approval of Congress.
Our current bankrupt state is precisely due to 100 years of failed marxist liberalism that was implemented by violating the limits placed upon the govt by the constitution.
Liberals didn't save the auto industry. GM's so-called return to number 1 is because most of their sales are in China for Buicks, GMC, and some Chevy's being produced in China and Canada.
Yes liberals did impose a massive unconstitutional infringement on our liberties with the totalitarian Obamacare.
Excellent Larry:) They lie and spew DNC talking points on here with impunity. Thanks
Raise the flag! A Republican said something that actually makes sense. But don't worry folks, it won't happen again.
Keep going Bubba Mitt,
maybe you will hit on something, some day that people believe.
I doubt it nut case.
"a rhetorical slip..." A slip, yes, but not a rhetorical slip, a slip of substance, i.e., he committed truth.
This country doesn't need any growth. It's already done more than enough growing, cancer-style, becoming as morbidly obese as many of its citizens (this writer admittedly included). What it needs isn't to keep getting larger, it's to distribute its "weight" evenly, according to need, in a healthy and holistic fashion. We need to stop the corporate raiders who plunder this company's coffers in order to line their own pockets, then cut deals with poorer nations to allow them to break this country's laws and live like feudal kings just off the radar of American consciousness. We need a world where selfishness, secrecy, greed and violence are met with such swift and terrible retribution that nobody even thinks to try and get away with obviously immoral actions (and I'm talking real morality, not the kind where you think abortions and homosexuality and so forth are wrong simply because they happen to offend your personal preferences, your bias in favor of things you like and against things that make you queasy, as if your stomach were the sole arbiter of right and wrong - newsflash, you're not always right and your squishy emotional prejudices aren't the barometer for truth).
ScmSKing union maggots
^ That's the spirit! Let your hate of the American worker shine through.
It's 9 months till November and already GOP lackeys are coming unhinged. :)
Romney, once again, proves he would make a great nominee...for the Democrats.
The trouble with Romney is that he is too honest. He is right that cutting spending hurts the economy and that things are actually improving. Someone said he can't get out there and compete which means he can't be out there and throw empty lies and distortions out like Newt can. How can some think the economy is not improving? And Santorum is on his own ozone trip. This is not 1950 and we don't want to go back.
Who would vote for a person that avoids paying American taxes by putting millions into off-shore and Swiss accounts? Yes, it is legal but unethical...especially if you are attempting to win the US presidency.
For all those who defend it as being legal, abortion is legalo too, yet many Repubs say it is unethical, and morally wrong.
Spending cuts? Fine. Slash the military budget by 70%. Problems solved.
I wonder if Mitt will ever come out of the closet and admit to himself and everyone else that he is a liberal democrat??
It's nice to see some one from the right finally and actually state the obvious instead of continuing to lie about basic economics.
Willard slipped up and told the truth.
Look across the pond to Europe to get a clear understanding of how huge spending cuts effect weak economies. Many Countries are slipping back into recession as is the EU as a whole. Cut waste and trim budgets but cutting your way to prosperity does not work.
That's not to say we don't need a plan to address it because obviously we do, but short-term political fixes instead of substantive long-term plans are certainly not the answer.
To : Matthew, Houston, TX
“It is a paradoxical truth that tax rates are too high and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now … Cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus.”
– John F. Kennedy, Nov. 20, 1962, president’s news conference
“Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased – not a reduced – flow of revenues to the federal government.”
– John F. Kennedy, Jan. 17, 1963, annual budget message to the Congress, fiscal year 1964
“In today’s economy, fiscal prudence and responsibility call for tax reduction even if it temporarily enlarges the federal deficit – why reducing taxes is the best way open to us to increase revenues.”
– John F. Kennedy, Jan. 21, 1963, annual message to the Congress: “The Economic Report Of The President”
“It is no contradiction – the most important single thing we can do to stimulate investment in today’s economy is to raise consumption by major reduction of individual income tax rates.”
– John F. Kennedy, Jan. 21, 1963, annual message to the Congress: “The Economic Report Of The President”
“Our tax system still siphons out of the private economy too large a share of personal and business purchasing power and reduces the incentive for risk, investment and effort – thereby aborting our recoveries and stifling our national growth rate.”
– John F. Kennedy, Jan. 24, 1963, message to Congress on tax reduction and reform, House Doc. 43, 88th Congress, 1st Session.
“A tax cut means higher family income and higher business profits and a balanced federal budget. Every taxpayer and his family will have more money left over after taxes for a new car, a new home, new conveniences, education and investment. Every businessman can keep a higher percentage of his profits in his cash register or put it to work expanding or improving his business, and as the national income grows, the federal government will ultimately end up with more revenues.”
– John F. Kennedy, Sept. 18, 1963, radio and television address to the nation on tax-reduction bill
Which is to say that modern Democrats are essentially calling one of their greatest presidents a liar when they demonize tax cuts as a means of increasing government revenues.
So what happened when Kennedy cut taxes...The rich pay more when incentives to hide income are reduced. The share of the income tax burden borne by the rich increased following the tax cuts. Tax collections from those making over $50,000 per year climbed by 57 percent between 1963 and 1966, while tax collections from those earning below $50,000 rose 11 percent. As a result, the rich saw their portion of the income tax burden climb from 11.6 percent to 15.1 percent.
Look it up!
Not at all Rick. Keep in mind that Kennedy reduced the marginal tax rate from 91% to 77%, not 40% to 35%, and at a time when we have a negligible deficit and weren't fighting two wars. The facts and circumstances are entirely different and not at all comparable.
We have pretty good evidence now that reducing the tax rate by 5 percentage points under Bush did nothing but increase the deficit.
What were tax rates in the 1965?
70% regular income
25% capital gains
There's no comparison. At the time, rates WERE too high. They are much more manageable today. Your comparison is flawed.