From The Hotline Latest Edition for Wednesday, April 16,2008

MCCAIN

The Pitt Of Economic Despair

Wed. Apr. 16, 2008


The overwhelming majority of today's coverage of John McCain focused on his 4/15 economic speech in Pittsburgh (see 4/15 Hotline).

The speech, "delivered on the deadline for filing taxes, afforded the clearest view to date of what McCainomics might look like. There was a dash of populism," as he "criticized executive pay and corporate wrongdoing. There was a strong supply-side bent," with McCain "focusing on cutting corporate taxes and making permanent the Bush tax cuts that he once opposed. And there was a decidedly less hawkish note on deficits," as he "called for spending cuts but did not mention balancing the federal budget" (Cooper, New York Times, 4/16).

Among the highlights of McCain's plan: Lowering the corporate tax rate from 35% to 25% (the biggest tax cut in the plan); elimination of the alternative minimum tax; doubling the personal exemption for dependents from $3,500 to $7,000; making wealthier Americans pay higher premiums for Medicare prescription drugs; and giving drivers a summer-long holiday from federal gas taxes (Gilbert, Milwaukee Journal Sentinel, 4/16).

The response to McCain's speech was mixed, with most reviewers finding both pros and cons in the plan:

• CNN's Bash: "There were some things in this speech that were noticeably absent. ... First of all, his pledge earlier to balance the budget in his first term or any discussion at all of the billions of dollars that go to fund the war in Iraq" ("Situation Room," 4/15).

• New York Times' Cooper notes, McCain's speech was "backing away from his pledge to balance the budget by the end of his first term" (4/16).

• CNN's Borger: "We heard something a little bit different today. Yes, he does support [Pres.] Bush on making his tax cuts permanent. But there were also some counterintuitive things, some really populist things. For example, talking about how Americans have a right to be offended by the extravagant pay and pay packages of CEOs whose companies don't make any money; talking about a moratorium on gas taxes for the summer for American drivers; more tax cuts for the middle class; saying the wealthy elderly should pay more for their prescription drug benefits. You know, I think a little bit of the populist John McCain came out there" ("Situation Room," 4/15).

• CNN's Velshi, on McCain's new economic plan: "It's like a stew that's flavorful, but there's little bits of meat in it and the meat in it is good, but there's just not much." Velshi, on problems with McCain's new economic plan: "If you just don't want to deal with all the income tax stuff, it's kind of misguided. It's been misguided since the beginning. If you rate all the things that Americans don't like, it doesn't figure anywhere on the scale. It gets a lot of applause. A lot of bread, not enough meat. ... He has other proposals that are somewhat meaty, but he did discuss a lot of things he would introduce as legislation or do as president" ("American Morning," 4/16).

• "McCain's Plan for Working Class Offers Plenty for Corporate World" (Washington Post, 4/16).

• Wall Street Journal's Meckler notes, "the new McCain tax plan -- including new corporate breaks and a summer gas-tax holiday -- is stirring more enthusiasm for his campaign among his party's economic conservatives." ATR pres. Grover Norquist said McCain's speech provided "red meat for low-tax, free-market Reagan Republicans" (4/16).

• Bill Bennett: "On a big part of the speech, the spending, he's, I think, extremely credible, because no one has been more of a hawk on spending than John McCain" ("Situation Room," CNN, 4/15).

• GOP strategist Kellyanne Conway: "He took advantage of tax day to lay out his plan, rather than lay out his opponents, which is what the other two were doing. I'm very struck that he was very specific. I think some Republicans are going to disagree with his call for more regulation of the financial industries. But Henry Paulson, George W. Bush's secretary of the treasury, is basically going down that same path this past week" ("LKL," CNN, 4/15).

• Wall Street Journal editorializes, "many of the policies he proposed are laudable -- the highlight being an optional flat tax for individuals. The weakness -- especially heading into a general election amid a struggling economy -- is that his pudding still has no theme." McCain "tried to show voters he feels their pain. What they need and want to hear is a speech that shows that he understands and is willing to fight for the policies that produce prosperity" (4/16).

If We Took A Gas-Tax-Holiday, Took Some Time To Celebrate

Economists and energy analysts said 4/15 that McCain's gas-tax-holiday "would have little impact on mitigating the rise in gasoline prices. In fact, it could lead to the opposite result."

The federal gasoline tax represents a flat fee of 18.4 cents/gallon nationwide. With gasoline currently averaging $3.39/gallon, the tax represents a mere 5% of today's pump price. "While that's not trivial, consider that gasoline prices have more than doubled" since '04. "The problem is that lowering gasoline prices at the pump would encourage more consumption. So in the long run, it would push prices up" (Mouawad, "The Caucus," NYTimes.com, 4/15).

Many of the other responses to McCain's speech focused on the effectiveness of a gas-tax-holiday:

• Sen. Chuck Schumer (D-NY), on McCain's gas-tax-holiday: "How do you prevent the gas companies from just raising the price and making the difference up themselves? That's the big question" (Goode, CongressDailyPM, 4/15).

• Chicago Tribune's James writes about the gas-tax-holiday, "there are obvious problems. For instance, what would stop gas retailers from just hiking their prices to capture the savings? And if the gas-tax holiday led consumers to drive more, the entire benefit of suspending the gas tax could easily be lost to the price pressures that would come from higher demand" ("The Swamp," ChicagoTribune.com, 4/15).

• Wall Street Journal's Power notes, "many economists" have "questioned the wisdom of suspending or cutting gas taxes; doing so, they say, simply stimulates more consumption of gasoline." And "such criticism may explain why Congress has rejected ideas like McCain's so many times." Since '00, "there have been at least half a dozen attempts by individual members of Congress to suspend the federal gas tax, which raises money to repair and expand the highway system. All have failed" ("Washington Wire," WSJ.com, 4/15).

• Rocky Mountain News editorializes, McCain's gas-tax-holiday is "a gimmick." By "most accounts, infrastructure deserves more money, not less, so any such tax holiday would be doubly misguided" (4/16).

• PA resident Joanne Emel "would like to see" the relief from McCain's gas-tax-holiday. "Hey, it would help. ... I can afford to do this [pump gas], but I know families who can't" (Cozzoli, Harrisburg Patriot-News, 4/16).

So, That's A No?

Dems, meanwhile, pounced on McCain's speech.

FNC's Cameron: "Democrats nonetheless said what McCain is proposing amounts to little more than what they called the failed policies of the Bush administration. In the past, the senator has said that he could balance the budget in his first year as president. Now, he says it will take eight years which means he'd have to be reelected" ("Special Report," 4/15).

Hillary Clinton's policy dir., Neera Tanden: "John McCain is offering and economic strategy today that American's simply cannot afford: a George Bush-redux of corporate windfalls and tax cuts for the wealthy that will bankrupt our government and leave working families with the bill" (release, 4/15). For Barack Obama's response, see 4/15 Hotline.

Dem strategist Donna Brazile: "More of the same. ... What John McCain said today, George Bush said four years ago, George Bush said eight years ago. I don't believe he has a formula for success. ... I think that John McCain still has a long way of finding his voice on the economy" ("Situation Room," CNN, 4/15).

When I Think About You, I Out Of Touch Myself

The Dem-aligned Progressive Media USA has launched its planned four-month, $40M ad campaign against McCain.

For its newest spot, "Out of Touch," the group "spliced together soundbites of Bush and McCain commenting on the economy." Bush says at one point: "We're just in a rough patch." McCain then says: "And we are in a rough patch." And then the screen flashes to read: "232,000 American jobs lost in 2008—Bureau of Labor Statistics." The ad began running 4/15 on cable news in DC, and will rotate on CNN and MSNBC, a spokesperson for the org. said.

The RNC, meanwhile, denounced the ad. RNC spokesperson Alex Conant: "Voters are sick of these sorts of political ads, which are funded by special-interest groups and distort the truth" (Holmes, "Washington Wire," WSJ.com, 4/15).

That's What Friends Of The Earth Are For

Nat'l environmental group Friends of the Earth Action "will run TV ads across the country and on the web asking McCain to stop trying to add billions of dollars of subsidies for the nuclear industry to the Lieberman-Warner global warming bill." According to the group, the bill "is already a trillion-dollar giveaway for corporate polluters."

Friends of the Earth Action pres. Brent Blackwelder: "It is outrageous for Senator McCain to portray himself as tough on spending and as a friend of the environment, and then go out and push all this pork for corporate polluters. That's not straight talk" (release, 4/15).

Back To School

McCain was on MSNBC's "Hardball College Tour" on 4/15, appearing at Villanova Univ. Some highlights:

McCain, on how he will differ from Bush: "Well, I think that there's many philosophies and views and vision that we share for America. There are other areas, specific areas, in which we are in disagreement. What's an area of disagreement? Climate change. ... I believe that climate change is real. I think we have to act. ... [But] suppose we are right and do nothing. Suppose we just continue this endless debate and continue the increase of greenhouse gas emissions, and we hand these wonderful Americans a damaged planet? I think the answer to that is pretty obvious."

McCain, on his disagreement with Bush on torture: "My point is that for the future of this country, we have to make sure that we remain a nation that does not do things that our enemies do. And I promise you, my friends, I'll close Guantanamo Bay and we will never torture another person in our custody again."

McCain, asked if Obama is an elitist: "No. But I do believe that his statements were elitist."

McCain, asked if he would sit down with the Dem nominee and agree to withhold "sleaze ball" attacks: "I would love to do that."

McCain, asked what the most important issue, aside from climate change, facing the current generation: "Keeping the nation secure, obviously. I mean, we have to always face that as our as our first priority. ... I think there's one other aspect here that -- and it may not be as specific as you want. But, as you know, there's a dramatic loss of confident and trust in government."

McCain, asked about how he'll deal with the threat of Iran in the Middle East: "I think it's a threat, but I do believe that we can exercise a lot of options before we consider [war] seriously. As I said just a second ago, I don't think we can allow Iran to have nuclear weapons."

McCain, asked if the U.S. can handle a third war in the Middle East: "I think it would be incredibly difficult. But here's one of the things I would do as president: I would be calling in the leaders of Congress and the Intelligence Committee and I would say, look, my friends, here's a situation that's unfolding. ... Let's examine our options. If, God forbid, and I say that with all sincerity, we have to put Americans in harm's way ago, I want you to be in on the takeoff, as well as the landing. I would intensely and extensively consult with members of Congress" (MSNBC, 4/15).

Blond Haired Kid Who's Not Steve Doocy

Also during McCain's "Hardball College Tour" stop, a student raised a question about Clinton's weekend visit to an IN bar, where she took a shot of Crown Royal.

The student: "I was wondering if you think that she's finally resorted to hitting the sauce just because of some unfavorable polling. And I was also wondering if you would care to join me for a shot after this?" McCain "laughed," and "hoots and hollers came from the audience." McCain: "I did not see the clip of it but I certainly heard about it, and whatever makes Senator Clinton happy is ... is certainly, uh, certainly ..." (AP, 4/15).

It turns out that the student who asked the question was Peter Doocy, the son of "Fox & Friends" anchor Steve Doocy. For more, see today's MEDIA MONITOR.

Banging It Like A Cheap Drum

McCain sat down for an interview with Pittsburgh Tribune-Review's Zito. Some excerpts:

On Obama's "bitter" comments: "I cannot understand why Sen. Obama would have ever believed that the small towns in Pennsylvania and across America are anything but patriotic, dedicated, hard working people whose fundamental values have nothing to do with the economy, it has everything to do with their belief and strength and service to America."

Asked if people are "bitter": "People are worried. They are worried, but they do believe in America."

Asked how he counters claims that he represents Bush's third term: "I am proud to run on my record and my vision for the future of America. There are many areas in which I agree with President Bush and there are other areas in which we are in disagreement. Whether it be climate change or whether it be spending and lack of vetoing big spending bills" ("Primary Colors," PittsburghLive.com, 4/15).

He Drives A Dodge Stratus!

Ex-MN GOP exec. dir./Pawlenty adviser Ben Golnik will take charge of the midwest/mountain region for the McCain camp, GOP sources said.

Meanwhile, a look at the names of McCain's regional mgrs. suggests that one criticism of McCain mgr. Rick Davis "is no longer operative." Davis "did not pack this elite roundtable only with his allies. Only one" regional mgr. can reliably be considered a longtime Davis ally -- Doug Davenport, the regional mgr. for the mid-Atlantic. "Most of the rest are outsiders," like Gentry Collins, or McCain "lifers" like Jim Barnett, the mgr. for NH and New England; Craig Goldman, the mgr. for the southwest; and Buzz Jacobs, the mgr. for states like SC and FL.

The regional mgrs. "will report directly to Davis, bypassing a headquarters-based political desk, and will be largely responsible for almost everything that happens in their region." Davis and the regional mgrs., along with the camp's media and strategy teams, "will make joint decisions about media purchasing," although the regional mgrs. "will have some flexibility" (Ambinder, TheAtlantic.com, 4/15).

Holy Shirts And Pants

McCain issued a 4/15 statement marking Pope Benedict XVI's arrival in the U.S.

McCain: "His visits are historic in scope and remind us of the profound contributions to America's cultural values that he and the Church he leads have made. He is the most influential advocate for peace and faith in the lives of millions of Americans, and for millions more the Holy Father is a calming, spiritual presence to be welcomed and respected" (release, 4/15).

Meanwhile, McCain is among the 200 guests whom the WH has invited to an East Room dinner tonight to honor the pope's visit. "The pope won't be there, but the guest list" also includes Educ. Sec. Margaret Spellings, Speaker Nancy Pelosi, CJ John Roberts, and Justices Antonin Scalia, Anthony Kennedy, Clarence Thomas and Samuel Alito (Argetsinger/Roberts, Washington Post, 4/16).

The Triumphant Return Of Joe Biden

Joe Biden, in remarks prepared for a 4/15 speech at Georgetown Univ., said McCain would continue Bush's practice of pursuing the war in Iraq at the expense of other urgent global issues.

Biden: "When it comes to Iraq, there is no daylight between John McCain and George W. Bush. They are joined at the hip. ... When it comes to Iraq, there will be no change with a McCain administration ... and so there is a real and profound choice for Americans in November" (AP, 4/15).

Biden, on Arab sentiment regarding McCain's 100 years in Iraq comment: "The larger point was when we say to the Arab world that we would stay in Iraq for 100 years, even in peaceful circumstances, it feeds the assumption that we are there to control their oil and to have a permanent military base" ("Countdown," MSNBC, 4/15).

McCain, on disagreements with Biden over the future of the Iraq war: "Why should I be surprised that Joe Biden -- not surprised that Joe Biden in the year 2008 would be disagreeing with me?" ("Hardball," MSNBC, 4/15).

Of Course He Is

Sen. Joe Lieberman (I-CT) "is leaving open the possibility of giving a keynote address" on behalf of McCain at the GOP convo.

McCain "has yet to ask Lieberman to speak, either in primetime or elsewhere," but if McCain thinks it will help make his case for the WH, Lieberman "would be willing to speak on his behalf." Lieberman: "If Sen. McCain, who I support so strongly, asked me to do it, if he thinks it will help him, I will" (Raju, The Hill, 4/16).

Yeah, It Scared Me, Too

The McCain camp used the 4/15 tax deadline "to make a pitch of his own." An email from McCain popped up in supporters' inboxes "with the daunting subject: 'Have you filed your taxes?'"

The letter from McCain "reminded the readers of his tax plan and warned against the dangers" of his Dem opponents. McCain then wrote: "I cannot succeed in my efforts without your immediate financial support" (Holmes, "Washington Wire," WSJ.com, 4/15).

I Think I Would Have Gone With Something From Barefoot Contessa

Up until early 4/15 a.m., visitors to McCain's website could find seven of "Cindy's Recipes" -- among them, passion fruit mousse, Ahi tuna with Napa cabbage slaw, and farfalle pasta with turkey sausage, peas and mushrooms.

The "only problem was, all three of them, listed as favorite 'family' recipes" of Cindy McCain's, "were taken verbatim from the Food Network." And a fourth recipe "bore a striking resemblance to a similar recipe" by Food Network's Rachael Ray.

By mid-a.m., the McCain camp "had taken down all seven recipes" from the website "and was pointing a finger at an intern who, tasked several months ago" with contacting C. McCain's staff for favorite McCain recipes, "had prowled the Internet instead." McCain spokesperson Tucker Bounds: "The intern has been dealt with. ... We took away his zero pay."

The story was first reported 4/14 p.m. by David Weiner on "The Huffington Post," after he was alerted by "avid cook"/atty Lauren Handel. Handel "was looking for a recipe for dinner on Sunday night and discovered as she was Googling ingredients that the Food Network and McCain Web sites popped up at the same time" (Bumiller, "The Caucus," NYTimes.com, 4/15).

Appreciate You, Home State

A week ago, GOP activists living in the same AZ state legislative district as McCain "rejected nearly all the names" his camp submitted as candidates to become state convo delegates.

Six people on McCain's slate eventually became delegates, according to district GOP chair Rob Haney. Haney: "The people who know him like him the least. He is a media darling, so the general population doesn't know his record -- and conservatives do."

The group of conservatives "has dogged McCain since he first ran for Congress" in '82, "objecting to his views on illegal immigration and campaign finance, among other issues." And while "the group has at times been an embarrassment, McCain remains strong" in AZ (Billeaud, AP, 4/16).

A Sad Anniversary

McCain issued a statement today on the anniversary of the Virginia Tech shooting.

McCain: "On this day, Cindy and I join with all the students, faculty, friends and family of the Virginia Tech community in remembering those who were taken from this life too early" (release, 4/16).

Isn't He Old Enough Already?

Dick Morris writes, "this week, the old John McCain began to re-emerge. Articulating what tens of millions of Americans feel, he blamed the 'greedy' of Wall Street for causing the current economic problems." And "he said that, as always, it is the little guy who will pay the price when a recession hits, while the greedy who caused it make out, well, like bandits."

"This is precisely the kind of populist rhetoric that John McCain needs to embrace to have a chance to win the general election" (The Hill, 4/16).

Can't Find A Better Man

Cato Institute senior fellow Michael Tanner writes, "overall," McCain has a "better" health care proposal than Obama. With Obama's "heavy reliance on government," his plan "leads to the same problems that bedevil universal healthcare systems all over the world: limited patient choices and rationed care. McCain's proposal is much more consumer-centered and taps into the best aspects of the free market" (The Hill, 4/16).

Slow Yo Dole

New York Observer's Kornacki writes, McCain "is far different" from ex-Sen. Bob Dole (R-KS). "Fair or not, many Americans see him as a fearless and principled maverick, something that explains his enduring popularity" with indies and even some Dems. "The idea of a reformer is inherently 'young,' no matter that reformer's numerical age" (4/15).

When You Believe In Things That You Don't Understand, Then You Suffer

McCain "has converted his staff to his famously superstitious ways."

"Whenever anyone says something optimistic -- especially about this fall's general election -- a slew of staffers join him in knocking on wood." McCain press sec. Brooke Buchanan: "That's an ugly habit I've picked up myself. ... We were in Kansas City ... and someone mentioned winning in November, and three of us knocked on wood. We don't want to jinx anything."

McCain "has dozens of superstitions and rituals, many stemming from his days as a Navy fighter pilot, a notoriously superstitious bunch." He "carries a lucky feather, a lucky compass and a lucky penny -- not to mention a lucky nickel and a lucky quarter" (Curl, Washington Times, 4/16).

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