CHALLENGE #5:

Winning The Global

Economic Competition
CHALLENGE: America faces economic challenges at home
and abroad. China and the rapidly developing nations of Asia
are growing into stronger economic competitors. Europe has
merged into a large economic bloc with a common currency.
The Middle East and Russia are flush with oil money and
control a vital commodity. At home, America faces the
challenge of continuing to educate the workers of the future
while dealing with a housing crisis and credit crunch.

GOVERNOR ROMNEY: “Are we going to stay ahead of the

world, are we going to lead the world, or are we 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?” (Ryan J. Halliday, “Romney Defends His Health-Care
Plan,” Nashua Telegraph, 6/7/07)

GOVERNOR ROMNEY: “[W]e face a much tougher competitor

or group of competitors coming from Asia than we’ve ever
faced before. Asia is tough. There are a lot of Asians. They
are hard working people. And they’re going to give us a run for
our money in terms of our economic vitality.” (Governor Mitt
Romney, Remarks At The Club For Growth, 3/29/07)

GOVERNOR ROMNEY ON THE THREAT OF EXCESSIVE TORT

CLAIMS AND OVERREGULATION: “Regulations, over
regulation, things like Sarbanes-Oxley. Let’s apply millions of
dollars of penalty to every company in America thinking about
being public. That slows down growth. Tort claims, excessive
tort claims. Look, normal application of the legal process is
essential and necessary for an effective economy. But
excessive tort claims and runaway liability rewards retard the
growth of our entire economy and slow down the success that
all of our citizens enjoy.” (Governor Mitt Romney, Remarks At
The Club For Growth, 3/29/07)

Country Corporate Tax Rates

U.S.
Corporate Tax Rates (%)

45.00
39.3
40.00
35.00
30.00
25.00
25.00
20.00
15.00
10.00
5.00
0.00
Japan
United States
Germany
Canada
Spain
France
Belgium
Italy
New Zealand
Luxembourg
Australia

United Kingdom
Netherlands
Greece
Mexico
Denmark
Norway
Sweden
Korea
Portugal
Finland
Austria
Czech Republic
Switzerland
Poland
Slovak Republic
Iceland
Hungary
Ireland
Turkey

Country
Source: Organization for Economic Co-operation and Development

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Winning The Global Economic Competition:
THE ROM NEY Plan
Improve America’s Global Competitivenes∫
■ Lower The Corporate Tax Rate. Make America’s
business environment competitive with the rest of the
world to attract capital and encourage investment.
■ Strengthen Education. Emphasize math and science,
while promoting innovative approaches such as charter
schools and public-private partnerships, to ensure
American workers have the intellectual capital and skills
to compete in the 21st century economy.
■ Improve Worker Retraining. Consolidate and
streamline the numerous federal programs in this area,
and focus on giving workers the skills they need to
succeed in a global economy.
■ Reform Our Immigration Laws. End illegal immigration,
but encourage legal immigration and streamline the
system to recruit and retain highly-skilled workers and
welcome the best and the brightest from around the
world to our universities.
Unleash The American Economy
■ Lower Taxes For All. Lower income tax rates across the
board to reward productivity and leave more money in
the economy for consumption and investment.
■ Zero Rate On Middle Class Savings. Eliminate all
taxes on interest, dividends, and capital gains for
anyone with Adjusted Gross Income under $200,000 to
make it easier for the middle class to save.
■ Make The Bush Tax Cuts Permanent. Extend the pro-
growth tax cuts on income, capital gains, and dividends
implemented by the Bush Administration that will
otherwise expire in 2011.
■ Eliminate The Death Tax Once And For All. Allow
families to pass their hard-earned savings, and assets
from businesses to farms to homes, from one
generation to the next without the federal government
taking a cut.
ROMNEY
■ Provide Regulatory Relief. Eliminate cumbersome and
unnecessary regulations and bureaucracies that hinder
economic growth and job creation.
■ Implement National Tort Reform. End the frivolous
lawsuits and excessive non-economic damages that
burden American companies with excessive tort costs.
■ Build And Repair Transportation Infrastructure. Invest
in infrastructure projects critical to the national
economy and its flow of goods and people, instead of
funding home-district pork.
GOVERNOR ROMNEY: “Let me talk just briefly about my tax
philosophy. One, I was the first candidate for president to
sign the Norquist tax pledge. [Two,] of course we have to
make the Bush tax cuts permanent. [Three,] of course we
have to abolish the death tax. It just isn’t fair to tax people
twice. Well, three times. Once, when they earn it. Second,
when they invest it and pay dividends or get their dividends
interest and capital gains. And then a third time when they
die. Four, I proposed a savings incentive plan. And this is a
plan that basically says we’re going to let people of
moderate income save their interest, their dividends and
their capital gains tax free. No tax whatsoever on capital
gains, interest and dividends. Lower marginal tax rates for all
Americans. Get taxes down. Make them simpler, and flatter
and lower. And finally, make our corporate tax competitive
with the rest of the world. That’s where I’m going. That’s what
I’m going to fight for.” (Governor Mitt Romney, Remarks At
The Club For Growth, 3/29/07)
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