Republican Primary Debate - Myrtle Beach

PARTICIPANTS:
Former Speaker of the House Newt Gingrich (GA);
Representative Ron Paul (TX);
Governor Rick Perry (TX);
Former Governor Mitt Romney (MA); and
Former Senator Rick Santorum (PA)

MODERATOR:
Brett Baier (Fox News)

BAIER: Thanks, Bill, and welcome to the Myrtle Beach Convention Center and the Republican presidential debate. It's being sponsored by Fox News, the Wall Street Journal, and the South Carolina Republican Party.

Now let's meet the five remaining candidates. Texas Governor Rick Perry. [applause]

Former Senator Rick Santorum. [applause]

Former Massachusetts Governor Mitt Romney. [applause]

Former Speaker of the House Newt Gingrich. [applause]

And Congressman Ron Paul. [applause]

And, of course, our stage is down one podium, with Governor Jon Huntsman's announcement today that he is leaving the race. You at home can participate through Twitter tonight. You can weigh in on how well the candidates are answering the questions. Tweet the candidate's last name and hashtag answer if you think he's tackling the question or hashtag dodge if you think he's avoiding the question.

Then you can go to foxnews.com/debate to see the results during the break. You can head there and check it out.

Now let's meet our panelists tonight. Fox News political analyst and my colleague, Juan Williams. [applause]

And from the Wall Street Journal, economics correspondent Kelly Evans. [applause]

And Washington bureau chief Jerry Seib.

Our rules are similar to our previous Fox debates, except now answers will be 1 minute and 30 seconds to allow for a fuller discussion of the issues. But follow-ups will still be 30 seconds.

Now, in past debates, we've reminded candidates it's time to wrap up with various sounds. We started with a doorbell. That didn't work for dog-owners. And then we had a digital sound, which seemed rarely — pretty ineffective.

Tonight, after a long string of debates and with longer answer time, we're going to try to not use any sound. You all have done this now 15 times. I'm sure you know the drill. But warning: We do reserve the right to bring back the bell if we have to.

Today, as you know, is Martin Luther King, Jr., Day. As we look live at the Dr. Martin Luther King, Jr., Memorial in Washington, its first year on the mall, we're reminded of one of the many notable quotes from the late Dr. King. "The ultimate measure of a man is not where he stands in a moment of comfort and convenience, but where he stands at times of challenge and controversy."

This campaign has been filled with challenge and controversy. The challenges are large. Here in South Carolina, the unemployment rate is near 10 percent, well above the national average. And on this MLK Day, unemployment in African-American communities is near 16 percent.

But the controversy on the campaign trail in recent days has been about Governor Romney's record. We are going to talk extensively about jobs, federal debt, world hotspots, and social issues, but, first, let's clear the air.

Speaker Gingrich, on a debate stage in September, you vowed to, quote, "repudiate every effort of the news media to get Republicans to fight each other to protect Barack Obama, who deserves to be defeated," close quote. And yet in recent days, you and your campaign have cited numerous outlets, from the New York Times to Salon.com, to attack Governor Romney's business record, the exact line of attack the Obama campaign is using. Why?

GINGRICH: Well, first of all, I think that the staying positive through Iowa, through $3.5 million of negative attacks, proved you either have to unilaterally disarm and leave the race or you have to at least bring up your competitor's record.

Second, I think it's very important for us to look at job creation. As a young member of Congress, I worked with President Ronald Reagan. We passed an economic growth package. We created 16 million jobs. The American people within a framework that Reagan had established created 16 million jobs.

As speaker I came back — working with President Bill Clinton, we passed a very Reagan-like program, less regulation, lower taxes. Unemployment dropped to 4.2 percent. We created 11 million jobs. Now, those are real numbers that people can verify out in the open.

Governor Romney as governor raised taxes and Massachusetts was 47th in job creation, fourth from the bottom. That's a public record difference.

The second part of his campaign is citing his experience in business, which is perfectly legitimate, but if that's a part of your campaign, then questioning it has to be equally legitimate.

And it struck me raising those questions, giving me an opportunity to answer them is exactly what campaigns ought to be about. And we need to satisfy the country that whoever we nominate has a record that can stand up to Barack Obama in a very effective way. [applause]

BAIER: Governor Romney, I will give you time to respond in just a minute. Speaker Gingrich, the Wall Street Journal editorial page calls your attacks crude and damaging caricatures of modern business and capitalism. And they write that you are embarrassing yourself by taking the Obama line.

How do you respond to that?

GINGRICH: Well, first of all, I don't think raising questions is a prerogative only of Barack Obama and I don't think Republicans should allow themselves to automatically be intimidated because every time you raise a question somebody yells you are doing something the Democrats will do.

I raise questions that I think are legitimate questions. The questions, some of which came straight out of Wall Street Journal articles. The governor has every opportunity to answer those questions to give us facts and data and I think that's part of his responsibility as a candidate and I think that's part of what a campaign is about, is to raise question and see whether or not whether or not your competitor can answer them effectively before you get to a general election where you know those questions are going to be asked.

BAIER: One more time. You said last week if somebody comes in and takes all the money out of your company and leaves you bankrupt while they go off with millions, that's not traditional capitalism. That doesn't sound like a question.

GINGRICH: I think if you look at the record, part of which is published in the Wall Street Journal, remember its very limited public record because he was in a very private company. But there was a pattern in some companies, a handful of them, of leaving them with enormous debt and then within a year or two or three having them go broke. I think that is something he ought to answer.

BAIER: Governor Romney, your response.

ROMNEY: Well, I appreciate the chance to talk about my record and the private sector and also the governmental sector. And I appreciate the speaker's work working in the Reagan years and in the Clinton years. We did see good growth in this country. I want to see that come back again.

My experience in the private sector took me, one to be head of a consulting firm that got in trouble and work to create jobs there and hold on to jobs. We were in tough times. And then I got the chance to start a business of my own.

And four of the companies that we invested in, they weren't businesses I ran, but we invested in, ended up today having some 120,000 jobs. Some of the business we invested weren't successful and lost jobs. And I'm very proud of the fact that we learned from the experience.

We invested in well over 100 different businesses. And the people have looked at the places that have added jobs and lost jobs and that record is pretty much available for people to take a close look at.

But my record as the governor of Massachusetts and as the person that led the Olympics flowed from the fact that I had experience turning around tough situations, that I worked in the private sector, demonstrated a record of success. By virtue of that I was asked to come out and organize the Olympic Games in Salt Lake City.

And then was asked after the success of that experience to come back to Massachusetts by a number of people there, encouraged me to come back, run for governor. I did. We were fortunate to have an unemployment rate by the time I left office of 4.7 percent. Sounds pretty good today.

And I was also proud of the fact that we balanced the budget every year I was in office. We reduced taxes 19 times, put in place a rainy day fund of over $2 billion by the time I left.

And so my record is out there, proud of it, and I think if team want to have someone who understand how the economy works, having worked in the real economy, that I'm the guy that can best post up against Barack Obama. [applause]

BAIER: Governor Perry, you have gone so far as to call what Mitt Romney did at Bain vulture capitalism. But you've also said regulations in America are killing America. In fact, you said we should repeal the most recent financial regulations law, Dodd-Frank.

So what specific regulations would you put in place to curb vulture capitalism?

PERRY: Well, let me go back and say that having been the governor of the state that created over a million net new jobs, that we are all about capitalism, and I think our record proves that we are all about capitalism.

But I visited Georgetown, South Carolina. It was one of those towns where there was a steel mill that Bain swept in, they picked that company over and a lot of people lost jobs there.

And the fact of the matter is we've got records. We've got records. My record is one of those that's been open to the public for quite a few years. And as a matter of fact, my income tax have been out every year.

Newt, I think you will let your income tax come out Thursday.

And Mitt, we need for you to release your income tax so the people of this country can see how you made your money. And — and I think that's a — I think that's a fair thing. Listen, here's the real issue for us, as — as — as Republicans, we cannot fire our nominee in September. We need to know now. So I hope you'll put your tax records out there this week so the people of South Carolina can take a look and decide if, you know, we've got a flawed candidate or not.

But the fact is on the regulatory side, Dodd-Frank does need to — to be gone. We've got too many regulations. Everyone knows that. We are strangling this country with regulations. [applause]

And we as a country, need to get rid of Dodd-Frank. We've got plenty — matter of fact, I would get rid of a substantial amount of those financial regulators so that we can in fact, get back to capitalism without Washington strangling it.

BAIER: Governor Romney, 30 seconds. [applause]

ROMNEY: Well, Brett I need a little longer than that, we had a couple of...

BAIER: Well there will be plenty of time.

ROMNEY: Well...

BAIER: Thirty seconds for this time.

ROMNEY: Lets take a little more time than that. First — first of all, I think — I think Governor Perry makes a — a very good point about — about Georgetown. For those that don't know, it was a steel mill and — and my firm invested in that steel mill and another one in Kansas City, tried to make them successful. Invested there for seven or eight years. And ultimately what happened from abroad, dumping steel into this country lead to some 40 different steel mills being closed.

And — and that was one of those. I understand what happens when China cheats, or when others cheat and dump products into this country. That's one of the reasons I'm running is to make sure we crack down on cheaters. By the way, we also started a new steel mill with new technology in Indiana. That one's growing and thriving. I — I think that experience is what America needs in a president. Secondly I — I agree with the governor with regards to regulations. Regulations are choking off this economy.

I will do everything in my power to put a halt to all the Obama era regulations, review those that kill jobs and get rid of those so we can get the private sector working again. [applause]

BAIER: Gerald Seib with the Wall Street Journal.

SEIB: Governor Romney, let's look a little deeper at the business record that you're talking about. In a nutshell, what your opponents here are saying is that Bain Capital and other private equity firms, buy companies, load them up with debt, take the profits and then head for the exits. Let's look at another example and allow you to respond through that. America Pad and Paper is a company that Bain Capital bought with $5 million, took on more debt to expand, couldn't pay back the loans, went bankrupt and several hundred people lost their jobs.

Bain Capital though, took $100 million in profits and fees. Does that show a flaw in the Bain Capital model? Or is that just the rough and tumble of America capitalism?

ROMNEY: Well, first of all you never want to seen an enterprise go bankrupt. And you never want to see anyone lose a job. At the time I was at Bain Capital, the business was still going and didn't go bankrupt. What the company did, is they had one paper company and then they bought another one down the road and they said, we don't need to have, in — in an industry that's shrinking, two different plants making the same product, so lets consolidate the two plans together.

And all the people in the plant that was closed were offered jobs in the new plant. Now they were union workers. They didn't all want that non-union plant work rule setting. But ultimately, do I believe that — that free enterprise works? And that — and that private equity and the various features of our economy work to actually improve our economy? To make America the — the strongest economic nation in the world.

The — the — this is a major part of our economy, has been for a long time. Free enterprise, with all of it's different dimensions and players, makes America the — the strongest economic nation in the world.

The GDP per capita in this country, income per capita in this country, is about 50 percent higher than the average in Europe. Every time we invested, we tried to grow an enterprise, add jobs to make it more successful. And — and I know that people are going to come after me. I know President Obama is going to come after me. But the record is pretty darn good. You look at places like Staples, Bright Horizons, that steel company I talked about, the Sports Authority. They alone added 120,000 jobs as of today.

And — and those kinds of experiences are the kinds of things that allow me to know what it takes to get this economy working and to put people back to work. We've got a president in office three years, and he does not have a jobs plan yet. I've got one out there already and I'm not even president, yet. Thank you. [applause]

BAIER: Kelly Evans from the Wall Street Journal.

EVANS: Congressman Paul — Congressman Paul, this morning when he suspended his campaign, Governor Huntsman said the Republican presidential race has, quote "degenerated into an onslaught of negative and personal attacks, not worthy of the American people." You have been particularly scathing in your ads against the other candidates up here on stage tonight. Do you agree with Governor Huntsman that these attacks should be abandoned?

PAUL: Well, they should be abandoned if you're not telling the truth. But if you're exposing a voting record I think it's quite proper. There was one ad that we used against Senator Santorum, and I was only — I only had one problem, is I couldn't get all the things in I wanted to say in one minute. [applause]

But, you know, we mentioned No Child Left Behind and that he supported deficits times five, raising the national debt, and that he voted for prescription drug programs, as well as he voted against right-to-work. And I could have added, you know, things like — he voted for Sarbanes-Oxley. So my only regret is that I couldn't get enough in in that one minute that I should have.

UNKNOWN: Congressman Paul?

QUESTION: Hold up. Senator Santorum, you are going to get a question next, but respond, please, to Congressman Paul.

SANTORUM: Look, Congressman Paul has been quoting sources like CREW, which is a George Soros or a left-wing-backed organization, saying that I was corrupt. And in fact, throughout his entire ad, he quotes a lot of left-wing organizations.

Well, of course, left-wing organization say a lot of bad things about me. I would expect them. And that's — I wear that as a badge of honor, not something that I'm ashamed of.

With respect to some of the votes that they elicit, I admit, I'm a strong conservative, but I'm not perfect. President Bush's signature initiative of No Child Left Behind, I voted for it, I shouldn't have. It was something that I said, and I will say publicly, that we should repeal. In fact, we should repeal all of federal government's role in primary and secondary education, and if you give me the opportunity, I'll do that. [applause]

QUESTION: We have a question for you — go ahead; finish your thought.

SANTORUM: And with right-to-work, look, I represented the state of Pennsylvania, which is one of the — which is not a right-to-work state. If you look at who voted for the right-to-work bill in the Congress, those who came from right-to-work states voted for it. Those who came from non-right-to-work states represented their states. I wasn't going to vote in Washington, D.C., to change the law in my state.

I support right-to-work. I actually, as president, will sign and advocate for a right-to-work bill, but when I represented the people of Pennsylvania, I made the decision that I wasn't going to do in Washington and change the law in my state when my state didn't want to have that provision in their laws.

QUESTION: Juan Williams.

WILLIAMS: Senator Santorum, today you said Governor Romney is guilty of distorting your record as well as, quote, "lies and hypocrisy." You said this behavior is classic Romney, and no one is holding him accountable.

So the same question that Kelly asked, this time to you, should these barbed personal attacks against fellow Republicans be abandoned by the candidates?

SANTORUM: I — look, I have run a very strong and positive campaign. My ads have been positive. The only ad that I've ever put up that has contrasted myself with the other candidates, and does so in a way talking about issues.

Governor Romney's super PAC has put an ad out there suggesting that I voted to allow felons to be able to vote from prison, because they said I'm allowing felons to vote, and they put a prisoner — a person in a prison jumpsuit.

I would ask Governor Romney, do you believe people who have — who were felons, who served their time, who have extended — exhausted their parole and probation, should they be given the right to vote?

WILLIAMS: Governor Romney?

ROMNEY: First of all, as you know, the PACs that run ads on various candidates, as we unfortunately know in this —

SANTORUM: I'm looking for a question — an answer to the question first. [applause]

ROMNEY: We have plenty of time. I'll get there. I'll do it in the order I want to do. I believe that, as you realize that the super PACs run ads. And if they ever run an ad or say something that is not accurate, I hope they either take off the ad or make it — or make it correct. I guess that you said that they — they said that you voted to make felons vote? Is that it?

SANTORUM: That's correct. That's what the ad says.

ROMNEY: And you're saying that you didn't?

SANTORUM: Well, first, I'm asking you to answer the question, because that's how you got the time. It's actually my time. So if you can answer the question, do you believe, do you believe that felons who have served their time, gone through probation and parole, exhausted their entire sentence, should they be given the right to have a vote?

This is Martin Luther King Day. This is a huge deal in the African-American community, because we have very high rates of incarceration, disproportionately high rates, particularly with drug crimes, in the African-American community.

The bill I voted on was the Martin Luther King Voting Rights bill. And this was a provision that said, particularly targeted African-Americans. And I voted to allow — to allow them to have their voting rights back once they completed their sentence.

QUESTION: Governor Romney, 30 seconds to respond.

ROMNEY: Yes. I don't think people who have committed violent crimes should be allowed to vote again. That's my own view. [applause]

SANTORUM: That's very —

QUESTION: Last thing, Senator.

SANTORUM: You know, it's very interesting you should say that, Governor Romney, because in the state of Massachusetts, when you were governor, the law was that not only could violent felons vote after they exhausted their sentences, but they could vote while they were on probation and parole, which was a more liberal position than I took when I voted for the bill in the — in the Congress. So...

BAIER: Governor?

SANTORUM: If, in fact — let me finish — if, in fact, you felt so passionately about this that you are now going to go out and have somebody criticize me for restoring voting rights to people who have — who have exhausted their sentence and served their time and paid their debt to society, then why didn't you try to change that when you were governor of Massachusetts?

ROMNEY: Well, first of all, as... [applause] As governor of Massachusetts, I had an 85 percent Democratic legislature. This is something we discussed. My view was people who committed violent crimes should not be able to vote, even upon coming out of office.

Secondly, I did not have a super PAC run an ad against you. That's — as you know, that's something which is completely out of the control of candidates.

One of the things I decried in the current financial system that gets behind campaigns is that we have these voting requirements that put these super PACs in power that say things we disagree with. And I'll tell you, there have been some — there have been some attacks on me, I mean, that — that have just been outrageous and completely inaccurate and have been shown to be inaccurate. That's the nature of the process. I hope...

BAIER: We have a...

ROMNEY: I hope — I hope it ends. I hope it ends.

BAIER: We have a lot of questions.

SANTORUM: I need to — I need to respond to this. What the governor said is he didn't propose anything to change that law, and what he's saying is that the — the ad that says that I said that — or I voted to allow felons to vote is inaccurate. And it is inaccurate. And if I had something — the super PAC that was supporting me that was inaccurate, I would go out and say, "Stop it," that you're representing me and you're representing my campaign. Stop it. [applause]

BAIER: Governor — Governor Perry, go ahead.

PERRY: Here's — here's the issue.

ROMNEY: I actually think...

PERRY: And this is a great — this is a great example of the insiders that are having the conversation up here. And the fact of the matter is this. [applause] Washington, D.C., needs to leave the states alone and let the states decide these issues and don't do it from Washington, D.C. That's what needs to happen. [applause]

BAIER: Governor Romney, any response to either one of those?

ROMNEY: I — I agree with Governor Perry, that it should be decided at the state level. I also agree with — with Congressman Paul that — that a number of the positions that were described that Governor — or that Senator Santorum took were — were positions that were very different than the conservative views that he would suggest today.

I think the decision on — on voting against right-to-work was a bad decision and was made — as he indicated — based upon the — the reflection of the people of the state he was representing. It's politics, if you will.

In my state, I had a state that — that said that they did not favor my position. I'm not letting felons who had committed violent crimes vote. I think it's a — a position that's reasonable, and that's the position I've got.

BAIER: We may have to rethink that whole bell thing, but we're going to take a break right here. Remember to send your thoughts on how the candidates are answering the questions via Twitter. Tweet the candidate's last name and hashtag answer or hashtag dodge. Send me questions at bretbaier. Include that hashtag scdebate.

After the break, key issues and some more fireworks. We'll see. Stay with us.

[commercial break]

BAIER: Welcome back to Myrtle Beach, South Carolina. That was a time lapsed video of a sand sculpture right outside the convention center here. It does still have Governor Huntsman on that sand sculpture. He's not here tonight. Next round of questions is on foreign policy. And we'll begin with Congressman Paul. In a recent interview, Congressman Paul with a Des Moines radio station you said you were against the operation that killed Osama bin Laden. You said the U.S. operation that took out the terrorist responsible for killing 3,000 people on American soil, quote, showed no respect for the rule of law, international law.

So to be clear, you believe international law should have constrained us from tracking down and killing the man responsible for the most brazen attack on the U.S. since Pearl Harbor?

PAUL: Obviously no. And that's what — I did not say that.

What I — as a matter of fact, after 9/11 I voted for the authority to go after him. And my frustration was that we didn't go after him. It took us ten years. We had him trapped at Tora Bora and I thought we should have trapped him there. I even introduced another resolutuion on the principle of market reprisal to keep our eye on target rather than getting involved in nation building.

BAIER: But no respect for international law was the question about the quote that you used in Des Moines.

PAUL: Well, you know, I can't say — his colleague was in Pakistan, and we communicated, you know, with the government of Pakistan and they turned him over. And what I suggested there was that if we have no respect for the sovereignty of another nation that it will lead to disruption of that nation.

Here we have a nation that we are becoming constantly trying to kill people who we consider our enemies. At the same time we are giving the government of Pakistan billions of dollars. Now there's a civil war going on, the people are mad at us but yet the government is getting money from us and I think it's a deeply flawed policy.

But to not go after him — and if I voted for the authority, obviously I think it was proper. But once they waited ten years, I don't see any reason why they couldn't have done it like they did after Khalid Sheikh Aman. And that would have been a more proper way.

If somebody in this country, say a Chinese dissident come over here, we wouldn't endorse the idea, well, they can come over here and bomb us and do whatever. I'm just trying to suggest that respect for other nation's sovereignty — and look at the chaos in Pakistan now. We are at war in Pakistan, but to say that I didn't want him killed...

BAIER: No, I just quoted from your radio.

PAUL: I'm just suggesting that there are processes that if you could follow and that you should do it. There is proper procedures rather than digging bigger holes for ourselves.

That's what we have been doing in the Middle East, digging bigger and bigger holes for ourselves and it's so hard for us to get out of that mess. And we have a long ways to go. We are still in Iraq and that's getting worse and we are not leaving Afghanistan and the American people are sick and tired of it. 80 percent of the American people want us out of there. I am just suggesting that we work within the rule of law.

Like only going to war when you declare the law, then we wouldn't be...

BAIER: International law. I understand.

I guess U.S. intelligence officials say they had documents recovered in the compound in Abbottabad that that shows that al Qaeda was planning other attacks, perhaps bigger than 9/11. I asked you in our debate in Sioux City on the topic of Iran about this. But on this topic, GOP nominee Ron Paul would be running far to the left of President Obama on the issue of tracking down and killing terrorists who want to attack the U.S.

PAUL: I would say that if you do your best and you can't do anything, yes, we had the authority, we voted for it, you got it from the congress, you do it. I just didn't think they had gone through the process enough to actually, you know, capture him in a different way.

I mean, think about Saddam Hussein. We did that. We captured him. We tried him. I mean the government tried him and he got hung. What's so terrible about this?

This whole idea that you can't capture — just a minute. This whole idea you can't capture people...

BAIER: but you voted against the war in Iraq.

PAUL: Adolf Eichmann was captured. He was given a trial. What is wrong with capturing people? Why didn't we try to get some information from him? You know, we are accustomed to asking people questions, but all of a sudden gone, you know, that's it.

So I would say that there are different ways without trying to turn around and say, oh, for some reason this doesn't mean he's supporting America.

BAIER: Speaker Gingrich?

If you received, Speaker Gingrich actionable intelligence about the location of Taliban leader Mullah Mohammed Omar inside Pakistan would you authorize a unilateral operation, much like the one that killed bin Laden, with or without the Pakistani government knowing, even if the consequence was an end to all U.S.-Pakistani cooperation?

GINGRICH: well, let me go back to set the stage as you did awhile ago. Bin Laden plotted deliberately, bombing American embassies, bombings the USS Cole, and killing 3,100 Americans, and his only regret was he didn't kill more. Now, he's not a Chinese dissident. [applause]

You know, the analogy that Congressman Paul used was — was utterly irrational. A Chinese dissident who comes in here — a Chinese dissident who comes here seeking freedom is not the same as a terrorist who goes to Pakistan seeking asylum.

Furthermore, when you give a country $20 billion, and you learn that they have been hiding — I mean, nobody in their — nobody believes that bin Laden was sitting in a compound in a military city one mile from the national defense university and the Pakistanis didn't know it. Now...[applause]

We're in South Carolina. South Carolina in the Revolutionary War had a young 13-year-old named Andrew Jackson. He was sabred by a British officer and wore a scar his whole life. Andrew Jackson had a pretty clear-cut idea about America's enemies: Kill them. [applause]

BAIER: Congressman Paul, 30 seconds, please, 30 seconds to respond, since you were mentioned.

PAUL: My — my — my point is, if another country does to us what we do others, we're not going to like it very much. So I would say that maybe we ought to consider a golden rule in — in foreign policy. Don't do to other nations...[booing]... what we don't want to have them do to us. So we — we endlessly bomb — we endlessly these countries and then we wonder — wonder why they get upset with us? And — and yet it — it continues on and on. I mean, this — this idea...

BAIER: That's time.

PAUL: This idea that we can't debate foreign policy, then all we have to do is start another war? I mean, it's — it's warmongering. They're building up for another war against Iran, and people can't wait to get in another war. This country doesn't need another war. We need to quit the ones we're in. We need to save the money and bring our troops home. [applause]

BAIER: Governor Romney? And, again, the bell may be making a comeback. [laughter]

Governor Romney, should the United States negotiate with the Taliban to end the fighting in Afghanistan?

ROMNEY: Of course not. And Speaker Gingrich is right. Of course you take out our enemies, wherever they are. These people declared war on us. They've killed Americans. We go anywhere they are, and we kill them. And the — the right thing for...[applause]

The right thing for Osama bin Laden was the bullet in the — in the head that he received. That's the right thing for people who kill American citizens. [applause]

Now, the Taliban is killing Americans. This president has done an extraordinary thing. He announced the date of our withdrawal. He announced the date of the withdrawal of our surge forces based upon a political calendar, not the calendar that the commanders on the ground said it was based for our mission. That was wrong. [applause]

And then he announced the day that we're going to pull out of the country all together. And now he wants to negotiate from a position of extraordinary weakness? You don't negotiate from — with your enemy from a position of weakness as this president has done.

The right course for America is to recognize we're under attack. We're under attack by people, whether they're Al Qaida or other radical violent jihadists around the world, and we're going to have to take action around the world to protect ourselves.

And hopefully we can do it as we did with Osama bin Laden, as opposed to going to war as we had to do in — in the case of — of Iraq. The right way, Congressman Paul, in my view, is — to keep us from having to go to those wars is to have a military so strong that no one would ever think of testing it. That's the kind of military we have to have, and we have to pursue our interests around the world. [applause]

BAIER: Governor Romney, Mitchell Rice — Mitchell Rice, who I believe is one of your top foreign policy advisers, said that the Taliban may well be, quote, "our enemy and our negotiating partner." He said this means that some type of negotiated solution is the best near-term bet to halt the fighting. Is he wrong?

ROMNEY: Yes. The — the right course for America is not to negotiate with the Taliban while the Taliban are killing our soldiers. The right course is to recognize they're the enemy of the United States. It's the vice president who said they're not the enemy of the United States. The vice president's wrong. They are the enemy. They're killing American soldiers.

We don't negotiate from a position of weakness as we're pulling our troops out. The right course for us is to strengthen the Afghan military force so they can reject the Taliban.

Think what it says to the people in Afghanistan and the military in Afghanistan, when we're asking them to stand up and fight to protect the sovereignty of their people, if they see us, their ally, turning and negotiating with the very people they're going to have to protect their nation from. It's the wrong course. The vice president's wrong. We should not negotiate with the Taliban. We should defeat the Taliban. [applause]

BAIER: Senator Santorum, you said earlier, in the Libyan operation that President Obama missed an opportunity to capitalize on rebel offensives. Now, in Syria at the hands of Bashar al Assad, it's estimated that some 5,000 people have been killed. The country appears to be sliding into civil war and Arab League peace monitors seem to be failing. How would President Santorum, deal with this international crisis?

SANTORUM: Well, the — first off President Obama has dealt with it about as badly as possible. First he emboldened Assad by coming into office and establishing an embassy there, reestablishing diplomatic relationships, going through the process of trying to rehabilitate this tyrant. All, I'm sure, to the consternation of our friend, Israel who has consistently done the opposite, tried to step away and isolate Israel while at the time they're trying to negotiate in a very difficult situation in their country.

With respect to — to — to Syria, look, Syria and Assad are a threat to Israel. I was the author of a bill when I was in the United States Senate to put sanctions on Syria. And in fact, they worked to get Syria out of Lebanon, which was — which was step number one. That's no longer a viable option. We need to rally the international community, work and cooperate with removing Assad and work in — in concert with the Arab League, work with others.

As far as a military mission on our own, no I do not support a military mission into Syria, but we should be much more aggressive in following through with policies that effectuate the removal of Assad for the benefit of the Syrian people and for our neighbor — and for their neighbor, Israel. [applause]

BAIER: Governor Perry, since the Islamist-oriented party took over in Turkey, the murder rate of women has increased 1,400 percent there. Press freedom has declined to the level of Russia. The prime minister of Turkey has embraced Hamas and Turkey has threatened military force against both Israel and Cypress. Given Turkey's turn, do you believe Turkey still belongs in NATO?

PERRY: Well, obviously, the first thing we need to do in this country is cut the tax rate down to where the people feel confident that they can risk their capital and have a return on their investment. That's the reason I laid out a simple and — and flat tax of 20 percent with their home mortgage deduction and charitable expenses and local taxes, get rid of capital gains tax, get rid of the benefits tax, get rid of the tax on Social Security benefits, and then take 20 percent of that and mail your check in. I mean, even Timothy Geithner can get his taxes in on time with that type of a system. [applause]

And — and — and that is where we need to be focused, is creating jobs. As — pulling back those regulations that we talk about since '08, that this administration have pushed into place that have strangled jobs, getting America back to work again. That's what I've done for 11 years as the governor of the 13th-largest economy in the world. A million jobs have been created in our state. And our housing market not only is — is pretty solid, it's growing, and it's doing because we have created that climate where job creators know that they can go out and risk their capital and have a return on investment.

As the president of the United States, that's what I'm going to do, is to walk into Washington, D.C., work towards a balanced budget amendment to the United States Constitution, and try to pass a constitutional amendment, if the people will accept and work with me, to make Congress a part-time body, so they stay less time in Washington, D.C., they go back home and get a real job, like everybody else has, and live under the laws that they passed. [applause]

BAIER: Governor, so beyond moving to a part-time Congress and encouraging the rest of the nation to follow Texas in terms of job creation, you would take no pointed measures aimed at helping the U.S. housing market?

PERRY: I think I said two things that are pretty powerful: cut the taxes and cut the regulations, and — which will increase the jobs and people will have the income to come in.

It is — I don't think it is the government's responsibility. Look, we've already seen that with Freddie and Fannie. We don't need the federal government in the housing market anymore. They need to be out of the housing market. [applause]

BAIER: Jerry Seib?

SEIB: Governor Romney, in the book you wrote just before this campaign began, you said you were surprised that the press in the last campaign didn't press for more specifics on how to fix Social Security and Medicare, so let's fix that tonight. Let me ask you specifically: Would you reduce the cost of these programs by raising the retirement age for Social Security, by raising the eligibility age for Medicare, or by reducing benefits for seniors with higher incomes?

ROMNEY: Let me lay it out. First of all, for the people who are already retired or 55 years of age and older, nothing changes. It's very important, because I know the Democrats are going to be showing videos of, you know, old people being thrown off cliffs and so forth. But don't forget...[applause]

Don't forget who it was that cut Medicare by $500 billion, and that was President Obama to pay for Obamacare. So let's not forget that. [applause]

What — what I would do with Social Security is that I would lower — if you will, the 2.0, the version for the next generations coming up, I'd lower the rate of inflation growth in the benefits received by higher-income recipients and keep the rate as it is now pretty high for lower income recipients. And I'd also add a year or two to the retirement age under Social Security. That balances Social Security.

ROMNEY: With regards to Medicare, I would lay out the plan that — well, I actually did a couple of months ago that said, again, for higher-income recipients, lower benefit, a premium support program which allows people to buy either current standard Medicare or a private plan.

And this is the proposal which Congressman Paul Ryan has adopted. It's a proposal which I believe is absolutely right on. We have a premium support program. Give people choice. Let competition exist in our Medicare program by virtue of the two things that I've described: higher benefits for lower-income people, lower benefits for higher-income people and making a premium support program in Medicare and in — and Social Security a slightly higher retirement age. You balance those two programs.

By the way, the third major entitlement, Medicaid, you send back to the states. And the fourth new entitlement, ObamaCare, you repeal that one and finally get our balance sheet right. [applause]

BAIER: Speaker Gingrich. Speaker Gingrich, the plan that you have endorsed for addressing Social Security, you suggest also that younger workers should be allowed to put their tax money into private accounts rather than into the government program.

But that plan also says that if those private accounts don't pay out as much as the government program would, Washington should cut a check to make up the difference. Is that really a free market outcome if the government guarantees the outcome?

GINGRICH: Well, it is, as a historian, a fact-based model that has Galveston, Texas, and the entire country of Chile as testing grounds. Chile has done this. Jose Pinera's glad to talk about it, the guy who created it, they have done it for over 30 years.

First of all, it's totally voluntary. If you want to stay in the current system, stay in it. If you are younger and you want to go and take a personal savings account, which would be a Social Security savings account, you can take it.

Your share of the tax goes into that. The employer's share goes into the regular fund to pay for the regular fund. The historic record in Chile is the average young person gets two to three times the retirement income. In 30 years they have never written a single check, because nobody has fallen below the minimum payment of Social Security, and these are historic facts.

They now have 74 percent of the GDP in their savings fund, so much that they now allow people to actually invest outside the country. The principal group in Des Moines, Iowa, actually runs part of this program, and I actually interviewed the person who is in charge of it for the principal group.

So the Social Security actuary estimate if you make it a voluntary program, 95 to 97 percent of young people will take the program, because it is such a big return on your investment, you'd be relatively stupid not to do it. OK. [applause]

Now, what does it do? It gets the government out of telling you when to retire. It gets the government out of picking winners and losers. You save — it makes every American an investor when they first go to work. They all have a buildup of an estate, which you do not get in the current system.

And the estimate by Martin Prostein at Harvard is, who was Reagan's chief counsel and economic advisors, was you actually reduce wealth inequality in America by 50 percent over the next generation because everybody becomes a saver and an investor and you have a universal investing nation. [applause]

BAIER: Senator Santorum, Senator Santorum, in your jobs program you propose to eliminate the corporate income tax for manufacturers, but not for other businesses. Isn't that picking winners and losers in the same way the Obama administration did when it gave grants to one solar energy company, Solyndra, and it went bankrupt?

SANTORUM: No, it's not. What we do is cut corporate taxes for everybody. We cut it from 35 percent to 17.5 percent, make it a — basically a net profits tax. And then we take the area of the economy that's under competition from overseas for our jobs. The rest of the economy is not being shipped off like the mills here in South Carolina were to other countries around the world because of foreign competition.

Why? The foreign competition that we are dealing with right now is much cheaper to do business, excluding labor costs than we are, about 20 percent more, and that 20 percent differential is government. It's government regulation and it's also government taxation.

So part of what we are trying to do is to have a government system that can compete with who our competitor is. The competitor at the local drugstore is not China. The competitor is other people.

And as long as that is level and everybody's paying, the big corporations and the little ones — and that's why we have a flat 171/2 percent — so we keep the little guys paying the same rate as the big guys who have — right now, with this very complex code, a lot of folks in there trying to reduce rates by using the tax code to shrink their tax liability.

So we've leveled the playing field for the guys here in this country and we've created a competitive environment for the manufacturer. I want to make a point about Newt and his plans because they are not bold. And they're not — in the case of Governor Romney.

SANTORUM: And they are — and they're irresponsible. And I say that against Newt because there's nobody for the last 15 years that's been more in favor of personal savings accounts than I have for Social Security. But we were doing that when we had a surplus in Social Security. We are now running a deficit in Social Security. We are now running a huge deficit in this country.

Under Congressman Gingrich's proposals, if he's right, that 95 percent of younger workers taken, there will be hundreds of billions of dollars in increased debt, hundreds of billions of more debt being put on the books, which we can't simply — we're going to be borrowing money from China to fund these accounts, which is wrong. I'm for those accounts, but first we have to get our fiscal house in order, balance this budget and then create the opportunity that Newt wants. But the idea of doing that now, is fiscal insanity.

BAIER: Speaker Gingrich?

SANTORUM: And Mitt Romney's plan is simply not bold. We have a deficit now in Social Security. We have deficits now in Medicare. And he wants to say, well we're not going to touch anybody now. There's 60,000 people in this country who are earning over $1 million a year as a senior and he's saying, no let's not touch them. I'm saying, yes. We should absolutely do something about people who don't need Social Security when we're borrowing money from China to pay those millionaires.

BAIER: Okay, first Speaker Gingrich, your response?

GINGRICH: Well if you actually look at the plan at newt.org, you'll see that one of the ways we pay for it is we take 185 different federal bureaucracies that deal with low income Americans. Think about this, there are 185 separate bureaucracies with separate regulations, all dealing with low income Americans. We can consolidate them into a single block grant. We send it back to the states and we take the billions of dollars in federal overhead that saves and put that into Social Security in order to make up the difference.

So in fact Rick, it is a very sound plan and I say this as somebody who helped balance the budget four times in a row. [applause]

BAIER: Quickly. Quickly.

SANTORUM: Newt, I support that idea. But we need that to reduce the deficit we have now, not doing what you're suggesting, which is ballooning the deficit by hundreds of billions of dollars more and then using things that we should be doing now to strengthen this budget deficit, to add more fiscal — financial responsibility on to the federal government.

BAIER: Last one.

GINGRICH: Okay, Martin Feldstein estimates that if you have a personal savings account model, you increase the size of the economy by $7 to $8 trillion over a generation because of the massive reinvestment. In addition, I would just suggest having helped balance the budget for four consecutive years, for the only time in your lifetime, I'm reasonably confident I can find ways to balance the budget. [applause] Without hurting young people and blocking them from Social Security. [applause]

BAIER: Governor Romney, do you want your 30 seconds? Or are you just enjoying this back and forth? Would you like to weigh in?

ROMNEY: Rick is right. I — I know it's popular here to say, oh we could just — we can do this and it's not going to cost anything. But look, it's going to get tough to get our federal spending from the current 25 percent of the GDP down to 20, down to 18 percent, which has been our history. We've got a huge number of obligations in this country and cutting back is going to have to happen. I know something about balancing budgets.

In the private sector, you don't have a choice. You balance your budget, or you go out of business. And we — we simply can't say we're going to go out and borrow more money to let people set up new accounts that take money away from Social Security and Medicare today. Therefore, we should allow people to have a voluntary account, a voluntary savings program, tax free. That's why I've said anybody middle income should be able to save their money tax free. No tax on interest, dividends or capital gains.

That will get American's saving and accomplishes your objective, Mr. Speaker, without threatening the future of America's vitality by virtue of fiscal insanity. [applause]

BAIER: Coming up, social issues. And a reminder, go to foxnews.com/debate to see how well the candidates are answering the questions with your votes. Keep it here.

[commercial break]

BAIER: Welcome back to Myrtle Beach, South Carolina. And now for the next round of questions, my colleague Juan Williams.

WILLIAMS: Gov Romney, Speaker Gingrich says your record of support for gun owners is weak. You signed the nation's first ban on assault weapons in Massachusetts and steeply increased fees on gun owners in that state, in fact by 400 percent. How can you convince gun owners that you will be an advocate for them as president?

ROMNEY: Well, Juan, in my state we had a piece of legislation that was crafted both by the pro gun lobby and the anti-gun lobby. Massachusetts has some very restrictive rules and the pro gun lobby said, you know what, this legislation is good for us, it includes provisions that we want that allows us, for instance, to crossroads with weapons when we're hunting that had not been previously allowed.

And so the pro gun folks in our state, the the Gun Owners Action League and others said, look, we would like you to sign this legislation. And the day when we announced our signing, we had both the pro gun owners and anti-bun folks all together on the stage because it worked. We worked together. We found common ground.

My view is that we have the second amendment right to bear arms and in this country my view is also that we should not add new legislation. I know that there are people that think we need new laws, we need to find new ways to restrict gun ownership. And there is in Washington a non-stop effort on the part of some legislators, and I believe the president, to restrict the right of law-abiding American citizens from owning a gun.

I disagree with that. I believe we have in place all the laws we need. We should enforce those laws. I do not believe in new laws restricting gun ownership and gun use.

WILLIAMS: By the way, governor, I remember that you were teased mightily a few years ago to say you hundred varmints. I'm just wondering if you have gone hunting since '07.

ROMNEY: I'm not going to describe all of my great exploits. But I went moose hunting actually — not moose hunting, I'm sorry, elk hunting with friends in Montana. I've been pheasant hunting. I'm not the great hunter that some on this stage, probably Rick Perry, my guess is you are a serious hunter. I'm not a serious hunter, but I must admit — I guess I enjoy the sport and when I get invited I'm delighted to be able to go hunting.

WILLIAMS: Senator Santorum, you voted in support of requiring trigger locks on handguns. You also voted for background checks on firearm purchases made at gun shows. These positions have led your rivals to question your second amendment bona fides. What can you say tonight to reassure gun owners that you will stand with them?

SANTORUM: Both of those things were supported by the National Rifle Association. I worked with them to craft a bill. This was during the Clinton administration, where I voted against the gun ban, voted against the assault weapons ban, voted — voted 100 percent with the NRA. And this was a piece of legislation that was crafted that they endorsed, they supported, and worked with me to make sure that we could — we'd not have something far worse pass.

And so sometimes you have to pass something that can get enough votes to be able to satisfy folks that they won't pass something that's much worse. And so that's what you have to do to make sure that rights aren't taken away.

I've been a strong — again, lifetime A-plus record with the NRA, worked with them. They came to me repeatedly when I was in the Senate to help them and — and — and sponsor legislation and work toward making sure in ensuring gun rights.

Contrast that with Congressman Paul. And one of the most important things that we did in — in — in protecting the Second Amendment — and I provided a leadership role on it — was the gun manufacturers' liability bill. There were a lot of lawyers out there who were trying to sue gun manufacturers and hold them liable for anybody who was harmed as a result of the gun properly functioning.

And we — we went forward and passed, with the NRA's backing, a bill that put a ban on those types of lawsuits. If that ban had not been passed, if that gun manufacturer's liability bill, removing them from liability from that, had that not been passed, there would have been no gun industry in this country and there would have de facto been no Second Amendment right.

Congressman Paul voted against that bill. And — and that's a very big difference between someone who actually works with the gun — Second Amendment groups for — for legislation that can protect that right and someone who says they're for Second Amendment, has attacked me on my Second Amendment issues, which you just referred to, and here's a man that would have wiped out the Second Amendment by — if his vote would have been — carried the day.

BAIER: Congressman Paul?

PAUL: Hardly would that wipe out the Second Amendment. But the jurisdiction is obviously with the state. Even when tort law is involved with medical malpractice, which is a real problem, now, our governor worked on and our state has done a little bit on medical liability. I think that's the way it should be handled.

You don't have — you don't have national tort law. That's not part of the process. That should be at the state level. So to argue the case that that does away with the Second Amendment, when I'm the one that offers all — all the legislation to repeal the gun bans that have been going on [inaudible] everything else. [applause]

I mean, I've introduced legislation like that. So that's a bit — a bit of an overstretch to — to say that I've done away with the Second Amendment.

SANTORUM: No, I need to respond to that, because the fact is, if we did not have a national liability bill, then people would have been able to go to states like, say, Massachusetts or New York and sue gun manufacturers where they would not pass a gun liability bill. So unless you have a national standard to protect guns — manufacturers of guns, you would create the opportunity for the elimination of guns being manufactured in this country and de facto elimination of the right to bear arms. [applause]

PAUL: Well, this is the way — this is the way our Constitution disappears. It's nibbled away. You say, well, I can give up on this, and therefore, I'll give that, and so eventually there's nothing left. But, no, tort law should be a state function, not a federal function.

BAIER: Jerry Seib?

SEIB: Speaker Gingrich, a super PAC supporting Governor Romney is running an ad here citing a pro-life's group charge that you voted for a bill in Congress, co-sponsored by Nancy Pelosi, that supported China's one-child policy. And they say that means you provided government funding for abortion, but you oppose abortion. What's your response to that charge?

GINGRICH: Well, this is typical of what both Senator Santorum and I have complained about with Governor Romney's super PAC, over which he apparently has no influence, which makes you wonder how much influence he'd have if he were president. [applause]

Well, let me take that particular bill. That bill was introduced by Claudine Schneider, who is a Republican from Rhode Island. It was introduced at a time when Ronald Reagan's Mexico City policy was enforced. The Mexico City policy said no U.S. funding will be used to fund any activity that relates to abortion.

So it is explicitly a falsehood to suggest that a bill introduced under Mexico City policy would have paid for China's one-child policy. In fact, I have explicitly opposed it. I have a 98.6 percent National Right to Life voting record in 20 years. And the only vote we disagreed on was welfare reform, which had nothing to do with abortion. So I think it is an absurdity and it would be nice if Governor Romney would exercise leadership on his former staff and his major donors to take falsehoods off the air.

BAIER: Governor Romney? [applause]

ROMNEY: Speaker Gingrich, I — I already said at our last debate that anything that's false in PAC ads, whether they are supportive of me or supportive of you should be taken often the air and fixed. I've already said that.

Now I can't call these people and direct them to do that, as you know, because that would violate federal law, is that correct?

GINGRICH: Absolutely.

BAIER: All right.

So I can't do what you just asked me to do, but I can tell them publicly as I can here if there's anything that's inaccurate in any ads that support me I hope they take it off and don't run it.

But if we are talking about Super PAC ads that are inaccurate, Mr. Speaker, you have a Super PAC ad that attacks me. It's probably the biggest hoax since Big Foot. The people that looked at it have said that this ad is entirely false, that this documentary that they are running includes businesses I had no involvement with, the events that they described. And yet that's out there on a Super PAC that is supporting you.

You said that you think it's bad just as I said the Super PAC that support me is doing bad things. But somehow for you to suggest that you and I have different standards here is just not quite right.

GINGRICH: I said publicly — I said publicly it ought to be edited. And I believe, in fact, the head of that group has actually submitted your campaign a set of questions to make sure that they edit it accurately and put only the correct facts in.

So I think it should be edited. And I would be delighted if you would agree that the ad that was just referred to was false and people see the Romney Supe PAC ad attacking me on that particular issue should know in advance it is false and shouldn't be run.

UNKNOWN: Me too.

EVANS: Governor Perry.

ROMNEY: We all would like to have Super PACs disappear, to tell you the truth. Wouldn't it nice to have people give what they would like to to campaigns and campaigns could run their own ads and take responsibility for them. But you know what, this campaign is not about ads, it's about issues.

BAIER: So governor Romney, in the general election, if you are the nominee you would like to see Super PACs ended?

ROMNEY: Oh, I would like to get rid of the campaign finance laws that were put in place McCain-Feingold is a disaster, get rid of it. Let people make contributions they want to make to campaigns, let campaigns then take responsibility for their own words and not have this strange situation we have people out there who support us, who run ads we don't like, we would like to take off the air, they are outrageous and yet they are out there supporting us and by law we aren't allows to talk to them.

I haven't spoken to any of the people involved in my Super PAC in months and this is outrageous. Candidates should have the responsibility and the right to manage the ads that are being run on their behalf. I think this has to change.

EVANS: Governor Perry, you advocate placing more troops and bigger walls along the nation's southern boarder to stop illegal immigration, but border crossings are at a 4 year low — 40 year low, illegal immigration overall is down substantially and the U.S. has other pressing infrastructure and defense needs.

Governor, wouldn't we be better off not spending more money on border walls?

PERRY: Let me tell you the reason that those crossings are at 40 year lows is because the economy of the United States is probably at a 40 year low and the president of these United States needs to change. That's the reason.

As the governor of the second largest state and the state with the longest border, I have spent 11 years dealing with this issue. And the idea that Americans don't want us to spend the money to secure that border is just flat out false. We are going to secure the border with Mexico, that means strategic fencing, that means thousands of national guard troops on the border until we can train up those border patrol to be there.

And it means predator drones and other aviation assets to that we have the real-time information to flow down to those individuals that are in law enforcement so that they can immediately respond to any activities that they see on the border that is either weapons related or drug related or illegal immigration that's occurring on that border.

Americans want that border secure. The issue isn't about how much is it going to cost, the issue is when are you going to get it done? And when I'm the president of the United States that border will be locked down and it will be secure by one year from the time I take my hand off the Bible.

BAIER: Last Twitter question is from an eighth grade teacher in Hobart, Indiana. And it's for you, Speaker Gingrich.

Mr. Whiteman, has No Child Left Behind been a success or a failure? If the latter, what needs to be done to change it?

GINGRICH: I think it's clearly a failure. I think it has led teachers to be forced into a bureaucratic system of teaching to the test. I find virtually no teacher who likes it.

It is grossly disproportionate. You end up with first-generation immigrants who don't speak very good English being tested against a national standard. And a perfectly good school looks bad even though it's doing a great job because there's no measurement that's reasonable.

The correct answer is to radically reduce the Department of Education, cut out all federal regulations, return the money and the power back home to the states. But I would say to the states, it will be good for them to shrink their Departments of Education and return the power back to the local county boards, and then let parents and teachers and students get back to learning. [applause]

BAIER: Thank you all very much. That is the end of our debate, a fiery debate. We appreciate it. That's it for our debate tonight. Our thanks to the candidates, their staffs, the South Carolina Republican Party, and the great people here in Myrtle Beach, fantastic crowd. [applause]

Of course, the state of South Carolina, as well. They could not have been more hospitable.