Taxes, spending dominate GOP debate

Rivals challenge one another's economic records

In the final debate before tomorrow's New Hampshire primary, Republican presidential candidates toughened their messages. (Mike Segar/Reuters)

PORTSMOUTH, N.H. - A pitched battle over taxing and spending erupted last night as candidates in the final Republican presidential debate before tomorrow's New Hampshire primary argued over who would be toughest on money issues.

Hammered by his rivals in Saturday night's debate, Mitt Romney fired back last night, attacking John McCain and Mike Huckabee for failing to hold down taxes.

The shift in tone and posture reflected the high stakes for Romney, as he struggles to battle back from a second-place finish behind Huckabee in the Iowa caucuses and beat McCain, his chief rival in New Hampshire.

In the opening exchange, Romney turned a question about the fees he raised in Massachusetts into criticism of McCain for voting against President Bush's tax cuts. He also boasted that he had cut taxes 19 times as governor.

"So you have a choice," Romney said. "You can select somebody who wants to fight for those things or you can select somebody who's actually done those things, and I've got a record of cutting spending and cutting taxes."

McCain responded by pointing to his record of cutting so-called pork-barrel spending.

"I think it was the reason why I wasn't elected Miss Congeniality in the United States Senate," he said. "I have a record of saving billions for the American taxpayers."

The debate, which was held at Saint Anselm College in Manchester and broadcast on Fox News Channel, did not produce any embarrassing gaffes. But it featured several tense exchanges, particularly when Romney challenged Huckabee on taxes.

"Did you raise taxes in your state by half-a-billion dollars?" Romney asked Huckabee.

But Huckabee refused to answer. Instead, he boasted that he turned a budget deficit into a surplus and improved education in Arkansas. Romney asked the question two more times, but Huckabee did not answer.

"You know, Mike, you make up facts faster than you talk, and that's saying something," Romney told the former Baptist preacher.

Fred Thompson criticized Huckabee's plan to replace federal taxes with a national sales tax, the so-called fair tax. "I think that we ought to move toward a flatter tax," Thompson said. "That's why I proposed a move in the right direction toward reform, something that can actually get passed, unlike a lot of the things that we wish would happen that never will."

Rudy Giuliani boasted that he had cut taxes 23 times as mayor of New York.

"Everyone has their record to look to, we have all different pluses and minuses, but from the point of view of being a tax-cutter, I had the best record of anyone in government in the 1990s in cutting taxes," Giuliani said.

Fox excluded Texas Congressman Ron Paul from the debate, which prompted the New Hampshire Republican Party to drop its cosponsorship of the forum.

The candidates also sparred over who would help the poor and working class, a debate that reflected the influence of Huckabee's unique strain of economic populism.

"We're going to lose what the Reagan revolution was about," Huckabee said. "It was about getting those working-class people to believe that the Republicans cared about them, had a message for them, would empower them, and give them a chance to live the American dream."

Romney warned against vilification of big business.

"The truth of the matter is, it really is kind of offensive, I think, when I watch our Democrats, or anybody else, for that matter, attacking corporations that are creating jobs," Romney said. He criticized Huckabee, saying "You're not going to help the wage earner in America by attacking the wage payer in America."

Giuliani said it was a matter of explaining Republican policies to the poor. Talking about a welfare-to-work program, he said that as mayor of New York, "I would go into the neighborhoods where I was being castigated for 'workfare' and I would say to them, 'I'm doing workfare because I love you more. I care about you more.' "

McCain jabbed subtly at Romney's years in the corporate world when he was asked whether he has been in Washington too long to bring about change. Romney has been making that argument over the last several days in New Hampshire.

"All I can say is that I also had experience in leadership, not in management," McCain said. "I led the largest squadron in the United States Navy, not for profit, but for patriotism. I'm proud of that record of leadership."