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Critics Point To Headlines Trumpeting:• Declining Dollar

• Large And Persistent Trade Deficits

• Growing Federal Debt

• Lagging Education System

Governor Romney:“Despite These Challenges, America’s Future Can Be Brighter Than Our Past.”

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• Discretionary Spending Binge

• Entitlement System Facing Demographic Flood

• Looming Tax Hikes And A Rising Tax Burden

• Maintaining U.S. Competitiveness

• Increasing Calls For Protectionism

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Governor Romney: “I believe that we are overtaxed and government is overfed.Washington is spending too much money.”

$319

1998 Outlays GrownAt Inflation Rate

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1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

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Governor Romney: “I believe that we are overtaxed and government is overfed.Washington is spending too much money.”

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$348Inflation-Adjusted 1998 Outlays

Plus Homeland Security

1998 Outlays GrownAt Inflation Rate

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Governor Romney: “I believe that we are overtaxed and government is overfed.Washington is spending too much money.”

$319

$461

1998 Outlays PlusHomeland Security

$348

Binge Growth(What Actually Happened)

1998 Outlays GrownAt Inflation Rate

7

Governor Romney: “You see what happens to Social Security, Medicaid and Medicare. Basically, leftunattended…you get to a point where entitlements end up eating the entire federal budget. ”

8

Tax Cuts Expire

Average Tax Burden, 1956-2005

Percentageof GDP

Year

Tax CutsMade Permanent

Tax Revenues As Percentage OF GDP

Governor Romney On The Democrats: “There is an inconvenient truth that they don't want you to hear,and that is, no matter which one of them you elect, they're going to raise your taxes.”

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Governor Romney: “…you also face an emerging economic superpower in China. It's the newAsian tiger. And China and India are coming in a remarkable way to compete for our jobs.”

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Country

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Senator Hillary Clinton Senator Barack Obama Senator John Edwards

NAFTA:

CAFTA:

TradePromotionAuthority:

Voted NO Voted NO Opposed

Voted NO Voted NOWants“Significant Renegotiation”

Wants “Significant Renegotiation”

Opposed; Wants Renegotiation

“a lot of downsides”

Governor Romney: “Are we going to stay ahead of the world, are we going to lead the world, or arewe going to instead pull up the drawbridge and try to hang on to everything we've got and say we

can't compete with the world?"

11

SOLUTION:

Governor Romney: “Let me tell you, spending can be controlled. I know howto do it. I've done it before. We can control earmarks. We can control pork. Wecan put a cap on discretionary spending. I want to get in place and do a top-

to-bottom review of every agency of government. I love doing that.”

IMPOSE SPENDING DISCIPLINE

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The Romney Plan

• Veto Domestic Non-Defense Discretionary Appropriations That IncreaseSpending By More Than Inflation Minus One Percent

• Fight For Presidential Line-Item Veto Authority

• Conduct Stem-To-Stern Review Of All Federal Spending Programs

• Giving The President Additional Flexibility To Cut Spending

• Restoring The Supermajority Requirement In Congress To Raise Taxes

IMPOSE SPENDING DISCIPLINE

13

Governor Romney: “We can't remain the world's economic and militarysuperpower unless we are able to reform some of our entitlement spending.”

SOLUTION:

REFORM ENTITLEMENT SYSTEM

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The Romney Plan

• Social Security:• No Tax Increase

• Three Policy Levers

• Work With Congress In Bipartisan Way To Reform

• Medicare:• Fundamental Health Care Reform

• Rein In Costs

• Medicaid:• Federal Government Should Block Grant Medicaid To The States

• Block Grants Will Control Federal Spending

REFORM ENTITLEMENT SYSTEM

• Pro-Growth Policies That Expand Economic Growth

15

Governor Romney: “It's growth, stupid. Growth means higher incomes. Growthmeans more wealth. Growth means U.S. leadership.”

SOLUTION:

IMPLEMENT PRO-GROWTH TAX CUTSAND OPPOSE TAX INCREASES

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The Romney Plan

• Making The Bush Tax Cuts Permanent

• Rolling Back Tax Rates For All Americans

• Eliminating Taxes On Middle Class Savings

• Eliminating The Death Tax Once And For All

• Cutting The Corporate Tax Rate

• Stopping The A.M.T. From Hurting More American Families

IMPLEMENT PRO-GROWTH TAX CUTSAND OPPOSE TAX INCREASES

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Governor Romney: “I am optimistic about this country…I’ve been across thecountry and met a lot of people. The American people have the heart to succeed

in anything we put our minds to. I want to make sure America remains theeconomic power of the world…”

SOLUTION:

WIN THE GLOBAL ECONOMIC COMPETITION

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The Romney Plan

• Lower The Corporate Tax Rate

• Provide Regulatory Relief

• Implement National Tort Reform

• Strengthen Education And Prioritize Math & Science

• Improve Worker Training

• Attract And Retain The Best And The Brightest From Around The World

• Invest In Critical Transportation Infrastructure, Not Home District Pork

• Invest In Science, Technology And Energy Security

WIN THE GLOBAL ECONOMIC COMPETITION

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Governor Romney: “There's no question but that trade enhances the incomes ofthe American people. It's been calculated that approximately $9,000 of additional

income is earned by American families by virtue of the fact that we have tradearound the world. So we don't want to stop trade; we want to

continue the growth of trade.”

SOLUTION:

OPEN MARKETS FOR AMERICA

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The Romney Plan

• Launching A "Reagan Zone Of Economic Freedom" Among NationsCommitted To High Standards and Enforcement

• Concluding Existing Negotiations, Like The Doha Round, To BenefitAmerica

• Expanding Enforcement And New Frontiers Of U.S. Competitiveness

• The President Needs Trade Promotion Authority (TPA) To Open Markets ForAmerica

• Creating Worker Empowerment And Training Accounts

• Streamlining And Enhancing Access To Worker Training And EducationalPrograms

OPEN MARKETS FOR AMERICA

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• Impose Spending Discipline

• Reform Entitlement System

• Implement Pro-Growth Tax Cuts And Oppose Tax Increases

• Win The Global Economic Competition

• Open Markets For America