Romney is asked if he’s a flip-flopper on taxes. Romney: I did not raise taxes. I know that raising taxes is going to hurt families. Could slow economy. We balanced our budget [in Massachusetts] and that’s just what I’ll do in Washington. Washington is broken. We can shrink government. Cut out the unnecessary and wasteful. Need benchmarks in Washington. Stop talking about same old same old, and start getting things done.

McCain: I opposed tax cuts because we didn’t reign in spending… I never knew a sailor, drunk or sober, who had the creativity of my colleagues in Washington.

He repeats the offended sailor joke and gets a good laugh and applause.

Huckabee: Wants the fair tax, would get rid of AMT and all various taxes hidden in our system. Best proposal we ought to have, it’s flatter, fairer. We had a Congress that spent money like John Edwards at a beauty shop.

POW. First home run of the night, audience LOVES it.

Rudy: Cites Club for Growth report, says he ran one of the most fiscally conservative governments of last forty years. I did it in a place where it’s hard to do. Washington is easier than New York City. Reagan-like across the board budget cuts – five to twenty percent. Cites retirement of federal workers. I would pledge not to fill fifty percent.

Bold talk.

Brownback: Cites biodiesel. Drill in ANWR. We have to work on more conservation. My family has a hybrid car. Says his daughter goes about 25, seems like a joke that didn’t work. We need to do better.

Thompson is asked three fed programs that would cut. I have 1900 vetoes. I have more than all other Rep and Dem candidates combined. I reduced spending as gov of Wisconsin. Some in former Department [HHS]. Want agencies to come in with budgets of 95 percent. So many programs that need to be reduced and eliminated.

Wendell Goler says he didn’t hear three.

Thompson: Inefficiencies in stockpile.

Goler looks to Ron Paul, who says he would eliminate Departments of Education, Energy, and Homeland Security. Then goes on to change philosophy of what government can and should do.

Goler asks if he would get rid of DHS during a war. Paul says it’s inefficient giant bureaucracy. I don’t think the Republican position ought to be more bureaucracy.

Gilmore: I cut taxes as governor. I’ve been a consistent conservative my whole life. I think some people were very liberal in characterizing themselves as conservative. We’re gonna talk about who on my web site.

Lame. Come on governor, name names. Let’s see some fisticuffs.

Duncan Hunter says China is cheating on trade. Losing manufacturing jobs, cites number in South Carolina. Let’s bring back the American industrial base. Good line: “The arsenal of democracy is leaving these shores. We need to bring it back.”

Tancredo says passing Medicare prescription drug bill is inconsistent with saying we need to get spending under control. Maybe his best answer on non-immigration issue.

COMMERCIAL BREAKS! HOORAY!