–Retransmitting Story Published 23:46 ET Wednesday

By Brai Odion-Esene

WASHINGTON (MNI) – The first debate of the U.S. presidential
campaign saw President Barack Obama and Republican challenger Mitt
Romney exchange jabs over the state of the economy, the nation’s jobs
crisis as well as taxes and the ballooning deficit, without any clear
winner emerging.

It was an exchange with very few fireworks but which the
moderator, former PBS news anchor Jim Lehrer, struggled to control.
Both candidates accused the other of favoring policies that would send
the country down the wrong path.

Both men now embark on a heavy campaign schedule hoping to
capitalize on whatever gains the debate provided

On tax policy, Obama said he wants to lower tax rates —
particularly for manufacturing — with tax breaks for those that create
employment here at home but penalizing those that ship jobs abroad.

On the top-down economics that he accused Romney and Republicans of
favoring, Obama said: “That’s not what I believe is a recipe for
economic growth.”

“We have begun to fight our way back,” Obama said, citing the
improvement in the housing market, but there is still “a lot to do.”

Romney on the other hand declared that, “I won’t put in place a tax
cut that adds to the deficit,” arguing he just wants to reduce the
burden paid by middle income Americans and would not reduce the share
paid by high-income individuals.

Obama countered that the only way to pay for Romney’s tax plan
without burdening the middle class would be to make “drastic” cuts in
education and other things that “help America grow.”

Romney said he would lower reductions and exemptions as part of his
plan, as it would create more jobs. “There’s nothing better at getting
us to a balanced budget than getting more people working,” he said.

“Going forward with the status quo is not going to cut it for the
American people that are struggling today,” Romney added.

Obama insisted that the U.S. economy works best when middle class
Americans are getting tax breaks and “some money in their pockets,”
while those that are better off pay a little more.

As for the deficit, Romney called it not just an economic issue but
a moral one.

“I’m not going to keep spending money on things to borrow money from
China to pay for it,” he said.

“You’ll never balance the budget by raising taxes,” Romney said,
“the problem with raising taxes is that it slows down the rate of
growth.”

“If we are serious we’ve got to take a balanced, responsible
approach,” Obama said. No revenue increases, he warned, will mean
draconian spending cuts and “severe hardships” for many Americans.

On the subject of entitlements, Obama argued that the basic
structure of social security is sound.

“My approach is how to we strengthen the system over the long
term,” he said. “You don’t need a major structural change to make sure
Social Security is there for the future.”

Not surprisingly, the subject of regulation was raised, with Obama
forced to defend laws like the Dodd-Frank against Romney’s claims that
such legislation has hurt growth.

Every free economy has good regulation, Romney said, but he added
that some of the regulation passed during Obama’s term has become
excessive, and the Dodd-Frank Act in particular has had unintended
consequences that have become harmful to the economy.

For example, he noted the delay by regulators in crafting rules
clarifying the definition of a qualified mortgage is, which he said
is making banks hesitant to make loans.

Romney vowed to replace and repeal the law, arguing that it gave
biggest banks a “blank check.” Designating certain banks as
‘too-big-to-fail’ has disadvantaged smaller regional banks, he added.

Obama argued that enacted during his term has been the toughest
reform of Wall Street since the 1930s. Dodd-Frank is a necessity, he
said, as no one thinks there was too much oversight and regulation of
Wall St. before the 2008 financial crisis.

Obama has been accused of expanding the federal government’s
footprint during his time in office, but he declared that the government
has a responsibility to create “ladders of opportunity.”

Romney said he believed “the path we are taking is not working,
it’s time for a new path.”

In their closing remarks, Obama maintained that his faith and
confidence in the American future is “undiminished,” and promised to
fight just as hard in a second term

The election will be about the course of America, Romney said. “No
question in my mind that if the president is re-elected you will see a
middle class squeeze.”

** MNI Washington Bureau: 202-371-2121 **

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