Fox News Debate Wire, Part I

** McCain on the Reagan coalition: In some respects, the Reagan principles and philosophy and practices, we've gone away from.

** Cameron asks Huck what part of the Reagan coalition is gone. Huck says Reagan coalition hasn't seen middle class Republicans seeing themselves as part of the party as they should. Wants an economically broad coalition.

** And... his solution is...guess what? Cutting taxes on corporation and the wealthy... Ok, he also said a targeted stimulus package toward lower income people. He notes that many low income people don't pay income taxes. (But doesn't seem to make the connection that they also still feel economic anxiety. So maybe there's more to be done than cutting taxes?)

** Unlike the last debate in which he said the economy is just great, Thompson notes this time that the "money is getting tighter and tighter."

** Thompson notes that his tax cut plan may have been copied by Rudy...

** Paul talks about how artificially low interest rates has caused the bubble.

** McCain seems a little nervous when talking about the economy. He agrees that tax cuts stimulates the economy; wants to make the Bush tax cuts permanent (though he voted against them originally).

** Austerity: Giuliani would dramatically cut spending in a recession. Regulatory reform. Oversuing.

** Giuliani's ads: CBO says reducing taxes don't raise revenues. Defense? "It depends on the tax cutting." Cites Club for Growth's endorsement of the plan; "the biggest tax cut in our history." Wants to cut the corporate tax from 35 to 30%.

** Huckabee's short-term economic stimulus package? Fuel prices...subprime mortgages... health care costs...education costs..."a lot of people are working harder this year than they were a year ago." Cut marginal tax cut rates --> fair tax.

** McCain does not believe we're headed into a recession. McCain's prescription: cut spending, which is responsible for higher interest rates, stop outflow of energy money, educational retraining

** It would not be a Fox News debate without a tough question for Romney off-the-bat. (Chris Wallace noted that job growth in his Mass. was third-lowest in the nation.)

** Romney's prescription: solve the housing crisis, cut taxes for middle income Americans, lower gas prices, invest in R and D. He digs at McCain for saying that some jobs won't be coming back to Michigan and South Carolina. Uses the word "fight" a lot.