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Economy

Stephanopoulos Stumps Fiorina On Corporate Tax Loopholes

On This Week yesterday, McCain economic adviser Carly Fiorina restated her support of tax loopholes for big business. Fiorina, the former CEO of Hewlett Packard, has been a long-time defender of a gap in the U.S. tax code that enables American corporations to keep foreign profits overseas and abstain from paying domestic taxes.

The Wonk Room, which covered Fiorina’s preference for corporate tax breaks and offshoring back in April, wasn’t really surprised to hear her defending McCain’s stance on George Stephanopoulos’ show. But we were a little surprised to see how easily George was able to point out the flaw in her logic — and how transparently disingenuous Fiorina’s talking points really are.

Watch it:

[flv http://video.thinkprogress.org/2008/05/stephfiorina.320.240.flv]

Sen. McCain, according to Fiorina, understands that “you must focus on why jobs are going overseas.” That may be well and good, but what Fiorina seems to be missing, and what George points out, is that there are two separate issues. A cut in the corporate tax rate is not the same as closing a tax loophole — a tax loophole that allows business profits to remain completely untaxed if left overseas.

Even under Senator McCain’s plan, corporations would still pay 25 percent (down from 35 percent) on money they bring into the country — and that is a lot more than the zero that they pay now. As Stephanopoulos noted, this zero percent does nothing to incentivize businesses, or government defense contractors, from bringing profits back into the US.

Transcript: Read more

Climate Progress

McCain’s ‘Hypocritical’ Wind Power Photo-Op

VestasSen. John McCain (R-AZ) is poised to make a major speech on global warming today at the North American headquarters of the Danish wind-turbine company Vestas. In the speech, McCain takes steps to rhetorically distance himself from President Bush’s shameful record of inaction on global warming:

I will not permit eight long years to pass without serious action on serious challenges.

Center for American Progress Senior Fellow Joe Romm notes that McCain has chosen a “clever, but ultimately hypocritical location” for his address, because “conservatives including John McCain, are the main reason McCain has to go to a Danish wind turbine manufacturer to give a climate speech.”

Last year, Sen. McCain told Grist, “The wind industry is doing fine.” In fact, the United States was the market leader in wind technology — following government investments decades ago under President Carter. In the past 26 years that McCain has been in Congress, Romm explains, conservatives “repeatedly gutted the wind budget, then opposed efforts by progressives to increase it, and repeatedly blocked efforts to extend the wind power tax credit.” Now the United States is a bit player in the $36 billion global market.

In these past “eight long years” alone, McCain has worked with other conservatives to kill federal renewable electricity standards and renewable energy production tax credits. Here are some of the lowlights:

McCain Opposes Renewable Electricity Standards. A renewable electricity standard would require utilities to generate a certain portion of their electricity from wind, solar, geothermal, and other renewable energy sources. Twenty six states, including Arizona, have such requirements. The passage of a renewable energy standard in Colorado in 2004 was a key incentive for Vestas in siting its new wind turbine plant in that state. Sen. McCain voted against renewable electricity every time:

2002 (Vote 50): Voted against 20 percent requirement.
2002 (Vote 55): Voted to gut 10 percent requirement.
2002 (Vote 59): Voted to gut 10 percent requirement.
2005 (Vote 141): Voted against a renewable portfolio standard.
2005 (Vote 363): Cast deciding vote to cut rural Renewable Energy and Energy Efficiency program funding rom $23 million to $3 million.

McCain Opposes Renewable Production Tax Credits. The renewable electricity production tax credit has been key to the growth of the domestic wind industry by supporting power companies, businesses, and individuals who employ wind, geothermal, solar, and other types of renewable electricity. However, the tax credit has been allowed to expire three times in the past decade — in 2004, McCain introduced an amendment that would have eliminated the tax credit entirely. McCain’s continued opposition to the tax credit is putting the wind industry at risk again:

March 2006 (Vote 42): Voted against extension of tax credits.
March 2007 (Vote 98): Skipped vote to extend tax credits.
June 2007 (Vote 223): Skipped vote to extend tax credits.
December 2007 (Vote 416): Skipped vote to extend tax credits — extension failed by one vote.
February 2008 (Vote 8): Skipped vote to extend tax credits — extension failed by one vote.

A report from the Union of Concerned Scientists shows how this failure of conservative priorities — from Bush and McCain — “contributes to a boom-bust cycle of development that plagues the wind industry.”

UPDATE: In 2003, Vestas cancelled plans to construct a wind turbine plant in Portland, Oregon and laid off 500 employees because of the uncertainty surrounding the production tax credit.

Climate Progress

Full Text Of John McCain Climate Change Speech

UPDATE: The Wonk Room now also has the McCain campaign talking points, question-and-answer and “fact sheet” handouts.

UPDATE II: David Roberts at Gristmill, A Siegel at Energy Smart, and the Sierra Club praise McCain’s recognition of global warming but find his plan inadequate. Joe Romm at Climate Progress responds to McCain’s hypocrisy for delivering the speech at a Danish wind turbine facility. Matthew Yglesias wonders about McCain’s fixation on nuclear and insufficient goals. David Corn wonders why McCain “didn’t blast Bush on global warming when he was courting Republican voters.”

Here is the full text of Sen. John McCain’s (R-AZ) speech on climate change in Portland, Oregon (changes from prepared remarks are indicated):

Thank you all very much. I appreciate the hospitality of Vestas Wind Technology. Today is a kind of test run for the company. They’ve got wind technicians here, wind studies, and all these wind turbines, but there’s no wind. So now I know why they asked me to come give a speech.

Every day, when there are no reporters and cameras around to draw attention to it, this company and others like it are doing important work. And what we see here is just a glimpse of much bigger things to come. Wind power is one of many alternative energy sources that are changing our economy for the better. And one day they will change our economy forever.

Wind is a clean and predictable source of energy, and about as renewable as anything on earth. Along with solar power, fuel-cell technology, cleaner burning fuels and other new energy sources, wind power will bring America closer to energy independence. Our economy depends upon clean and affordable alternatives to fossil fuels, and so, in many ways, does our security. A large share of the world’s oil reserves is controlled by foreign powers that do not have our interests at heart. And as our reliance on oil passes away, their power will vanish with it.

Read more

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