Transcript of the debate

Page 5 of 32 -- Now, I'm going to reverse that. I'm going to change that. We're going to restore the fiscal discipline we had in the 1990s.

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Every plan that I have laid out -- my health-care plan, my plan for education, my plan for kids to be able to get better college loans -- I've shown exactly how I'm going to pay for those.

And we start -- we don't do it exclusively -- but we start by rolling back George Bush's unaffordable tax cut for the wealthiest people, people earning more than $200,000 a year, and we pass, hopefully, the McCain-Kerry Commission which identified some $60 billion that we can get.

We shut the loophole which has American workers actually subsidizing the loss of their own job. They just passed an expansion of that loophole in the last few days: $43 billion of giveaways, including favors to the oil and gas industry and the people importing ceiling fans from China.

I'm going to stand up and fight for the American worker. And I am going to do it in a way that's fiscally sound. I show how I pay for the health care, how we pay for the education.

I have a manufacturing jobs credit. We pay for it by shutting that loophole overseas. We raise the student loans. I pay for it by changing the relationship with the banks.

This president has never once vetoed one bill; the first president in a hundred years not to do that.

SCHIEFFER: Mr. President?

BUSH: Well, his rhetoric doesn't match his record.

He been a senator for 20 years. He voted to increase taxes 98 times. When they tried to reduce taxes, he voted against that 127 times. He talks about being a fiscal conservative, or fiscally sound, but he voted over -- he voted 277 times to waive the budget caps, which would have cost the taxpayers $4.2 trillion.

He talks about PAYGO. I'll tell you what PAYGO means, when you're a senator from Massachusetts, when you're a colleague of Ted Kennedy, pay go means: You pay, and he goes ahead and spends.

He's proposed $2.2 trillion of new spending, and yet the so-called tax on the rich, which is also a tax on many small-business owners in America, raises $600 million by our account -- billion, $800 billion by his account.

There is a tax gap. And guess who usually ends up filling the tax gap? The middle class.

I propose a detailed budget, Bob. I sent up my budget man to the Congress, and he says, here's how we're going to reduce the deficit in half by five years. It requires pro-growth policies that grow our economy and fiscal sanity in the halls of Congress.   Continued...