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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

Yglesias

When in Doubt, Blame the UN

Fred Hiatt’s descend into the worst kind of wingnutty foreign policy continues as we learn that we should blame the U.N. for the fact that SLORC is horrible and people are dying in Darfur. As Michael Cohen points out, this is senseless, the U.N.’s not a world government and it can’t intervene anywhere unless member states want to. On Darfur, as he says, when Ban Ki-Moon said the U.N. needed to send more helicopters to Sudan, nobody ponied up the choppers.

But the U.N.-bashers who want to blame the organization for “inaction” on these points are the last in line for proposals to give the U.N. more money, and more institutional capacity. It’s all absurd — the idea that the U.N. Charter is the only thing standing between the world and an efficacious intervention in Sudan or Burma doesn’t stand up to even cursory scrutiny. On Burma, meanwhile, it’s worth asking what Hiatt even thinks should have been done — the junta is behaving horribly, but it’s not like we’d be able to invade the country, overthrow the government, and then stand up a new regime all in time to distributive disaster relief in a timely manner.

Media

Fox News: ‘Blame Al Gore For Your Rising Food Prices’

Yesterday on Fox News’s Hannity’s America, host Sean Hannity attempted to blame Al Gore for skyrocketing global food prices:

But how did the food shortage become so acute so fast? The growing consensus is that the crop deficit is directly related to the increased demand for production of, quote, “earth friendly” bio fuels, an effort pushed by none other than the vanquished vice president Al Gore and all in the name of quote, “saving the planet.”

Fox News also promoted the segment on its website with the headline, “Gore’s Grocery: Blame Al Gore for your rising food prices.” Watch it:

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

Hannity pins ethanol production — and hence, the entire food crisis — on Gore by pointing to a 1998 statement in which the then-vice president said he was “proud to stand up for the ethanol tax exemption when it was under attack in Congress.” But as Ellen at News Hounds points out, Hannity failed to mention that more recently, Gore has endorsed cellulosic ethanol over corn-based ethanol.

Additionally, there is no one cause for the food shortage. Biofuel production has been a factor but is not solely responsible. The real culprits are: changing diets, global warming and drought, high energy costs, and investors fleeing the dollar and going into commodities.

Later in the segment, Hannity once again attempted to smear Gore by falsely stating that he said Tropical Cyclone Nargis was a consequence of “global warming.” As The Wonk Room’s Brad Johnson pointed out, this allegation is based on a doctored clip of an NPR interview with Gore.

Digg It!

Transcript: Read more

Politics

The Turn

508024104_409d8dc6e0.jpg

Sam Stein has a piece out titled “McCain Touts Green Policies At Wind Energy Firm – But He Opposed Their Key Legislation”. I’m not sure the underlying charge is all that damning — basically it’s about how McCain voted against a 2005 energy bill that would have done a lot to help wind power firms. But it was a whole tangle of subsidies for other stuff, too. Basically, McCain cares more about pork busting than he does about boosting wind power, but I think that’s a judgment reasonable people can disagree about. I’d go for Kate Sheppard’s “The Myth of Green McCain” for critique of the McCain environmental agenda.

But the interesting thing about the Stein piece is that it got emailed to me by the Obama campaign. In short, after months of the Obama press team sending me primary-focused stuff, now they’re more focused on McCain-focused stuff. Not a shocking development, but a noteworthy and, I think, welcome one.

Photo by Flickr user kavo1 used under a Creative Commons license

Security

In The War Of Ideas, Bush and McCain Wield A Wet Noodle

bushmccain.jpg

In yesterday’s Wall Street Journal, Commentary‘s Gabriel Schoenfeld warned of a “growing pro-Obama/anti-McCain axis,”* an Ecumenical Legion of Doom that, in Schoenfeld’s telling, includes Venezuela’s Hugo Chavez, Russia’s Vladimir Putin, the leaders of Hamas, Iran’s Mahmoud Ahmedinajad, and North Korea’s Kim Jong-Il:

The obvious possibility…is that one or more of these players might do everything in its power to hurt Mr. McCain and help Mr. Obama. Dramatic action keyed to our internal politics is, after all, already a page in some of our adversaries’ playbooks.

Today, Alex Koppelman notes that Schoenfeld’s argument manages to ignore everything that we have learned about the way that groups like Al Qaeda use media:

Schoenfeld…reached back to the 2004 presidential election, writing, “In 2004, Osama bin Laden’s television appearance only a weekend before the presidential election may have been a naked attempt to influence the outcome by reminding voters that he was still at large and President Bush’s policy had failed.”

Conspicuously absent from Schoenfeld’s argument that these various groups would want Obama as president and would take some action to help him, and from his discussion of the 2004 bin Laden videotape, is one very important point: The CIA believed that bin Laden wanted the tape to help President Bush, not his Democratic opponent, Sen. John Kerry.

Indeed, it’s important to recognize what a propaganda bonanza the neoconservative “war on terror” has been for Osama bin Laden, as well as for extremists, Islamic and otherwise, throughout the world. (The only thing that Kim Jong-Il, Ahmadinejad, Putin, and Hugo Chavez really have in common is the extent to which Bush’s arrogant unilateralism has helped justify the further consolidation of their political power.) The attacks of 9/11 made bin Laden a major figure in Arab media and culture; the decision by Bush and the neocons to cast him as the sinister leader of a global Islamofascist movement made him a legend. Simply put, Bush’s policy response to 9/11 has done more to promote bin Laden’s ideology than a hundred 9/11s. John McCain’s insistence on treating “Islamic extremism” as the “the transcendental challenge” indicates that he simply doesn’t grasp this.

*Why do neocons love that word, “axis” so much? Partly because the World War II allusion allows them to indulge their Churchill fetish. But mostly because it enables them to create the impression of an enemy “alliance” where there is no real evidence of any such thing, in order to conflate various extremist groups with differing, and often conflicting, goals and ideologies into a single Islamofascist Frankenstein’s monster, which they can then use to scare the simple villagers who read their magazines into voting for their preferred candidates.

There’s no denying that there are real threats out there in the world. The problem is that conservatives by and large have demonstrated over the past seven years that they are incapable of actually tackling the 21st century threats. They are stuck in a World War II mindset that is irrelevant to today’s challenges – after spending nearly a trillion dollars and grinding down our military, terrorist attacks have increased, the Al Qaeda threat remains real and present, and the positions of autocrats from Pyongyang to Moscow to Riyadh has gotten stronger.

Politics

Poll: America ‘seriously off on the wrong track.’

A new ABC News/Washington Post poll puts President Bush’s approval rating at 31 percent, a new low. Just three presidents — Jimmy Carter, Richard Nixon, and Harry Truman — have dropped lower. Bush, however, “has gone 40 months without majority approval, beating Truman’s record (also during economic discontent and an unpopular war) of 38 months from 1949-52.” Eighty-two percent of Americans also believe the country is on the wrong track, “up 10 points in the last year to a point from its record high in polls since 1973.”

Climate Progress

McCain speech, Part 2: Relying on offsets = Rearranging deck chairs on the Titanic

titanic_sinking-sm.jpgMcCain’s cost-containment strategy for his climate policy is a fraud. It substitutes a huge amount of low cost, phony emissions reductions both here and abroad — called offsets — for actual domestic emissions reductions. Offsets are “credits for reductions made from sectors of the economy outside the trading system.”

Such an offset strategy is little more than rearranging deck chairs on the Titanic, and wouldinvolve substantial issuance of credits that do not represent real emissions reductions,” according to a recent analysis by Stanford. Ironically, one of the carbon offsets that McCain explicitly cites, no till farming, does not actually offset carbon emissions, according to the latest science.

KEEPING CARBON COSTS LOW

Every major cap & trade bill needs a strategy to keep the cost of the emissions permits as low as possible to minimize economic pain and to stop politicians from trying to undo the entire system, by, say … oh, just hypothetically now … demanding a carbon price holiday whenever prices get too high or the economy starts to slow (see “McCain reveals cynicism, hypocrisy with call for summer gas-tax holiday, energy budget freeze.”)

Progressives like Sen. Obama typically embrace aggressive clean energy deployment strategies as well as smarter regulations that promote efficiency (see “Could a President Obama or Clinton stop global warming?“). Sen. McCain, like most conservatives, does not support such strategies and indeed has routinely oppose them (see Part 1). Unfortunately, without such policies, the price for carbon could easily reach hundreds of dollars per metric ton (as I explain in “No Climate for Old Men“), causing economic harm and a political backlash.

Another strategy for cost containment is a safety valve, a ceiling on the permit price. A safety valid is a terrible idea that undermines the whole point of a cap & trade (see here and here). Fortunately, McCain opposes a safety valve, as he explains in the newly released “Q&A: John McCain’s Climate Platform.” You can also read his new talking points and fact sheet and the speech itself. But the “Q&A” is the most important of all those.

This leaves McCain very few options if he wants a bill that keeps costs low. Sadly, he takes absolutely the worst possible option — unlimited offsets.

A TITANIC EMBRACE OF OFFSETS

Read more

Media

Block That Inference

George Stephanopolous reads exit polls:

We did ask a question I know in the exit polls about Reverend Wright, Barack Obama’s former pastor and whether that was influencing voters. What did we find? Right down the middle. About half said it’s important, about half said it was unimportant. Of those who said it was important, look at this in Indiana, 70% went for Senator Clinton. Of those who thought it was unimportant, again right down the middle, 65% for Barack Obama. So what you thought about the importance of Reverend Wright basically determined your vote.

As Lee Siegelman points out the causal inference here is all wrong. Much more likely is that voters already committed to Clinton — or strongly predisposed to commit to Clinton — adopted the view that Reverend Wright was an important issue because they knew it was an issue that reflected poorly on Obama. Note, for example, that both pre- and post-Wright, both Clinton and Obama took a fairly constant share of different demographic categories.

The thing is, you shouldn’t need to be especially sophisticated about statistics to figure this out. Clearly, Wright may have swayed some voters, but equally clearly most people had opinions about the election before Wright ever came on the scene. But Stephanopolous is hardly alone here, almost every time I see exit polls discussed on TV it’s done with almost no understanding of how to read them properly.

Media

News People Watch

One weird thing about journalism is that most people who work in the news business are happy to concede that the press is somewhat more trivial than they’d like it to be. This is often chalked up to commercial pressures — we’re not doing a terrible job because we’re idiots or bad people, the journalist says, it’s because the audience is so horrible. And yet despite the theory that the “freak show” builds ratings and sells papers, the reality is that television, newspaper, and magazine journalism are all in long-term structural decline steadily losing audience. It’s almost as if people don’t, in fact, want to watch the news covered in a stupid manner but actually would be somewhat interested in learning important information about the world.

Along those lines, Joe Matthews started paying close attention to local news in the Los Angeles media market and found that the Spanish-language channels were substantially more substantive than the English-language ones. And guess which language they speak on L.A.’s top-rated local newscast? Spanish, of course, perhaps because “in Spanish, viewers got fewer soft features and more deeply reported, longer pieces.”

Media

Kristol Suggests McCain Adopt ‘A Reformist Surge’ To Change ‘The Whole U.S. Government’

Yesterday on Fox News Sunday, Weekly Standard editor Bill Kristol said that since wrapping up the Republican nomination for president last March, Sen. John McCain (R-AZ) has used his time only “moderately effectively.”

To beef up his candidacy, Kristol suggested that McCain model his domestic policy after “the surge” because, according to Kristol, the surge was about “changing the way the U.S. military works” and it “succeeded.” Speaking as a revolutionary, Kristol said McCain needs to advocate “a reformist surge” against “the whole U.S. government”:

KRISTOL: [McCain] could say, “Look, I was a great proponent of the surge. What was the surge about? It was Dave Petraeus changing the way the U.S. military works, and it worked. It succeeded. Why can’t we do this for the rest of the U.S. government? Lots of the U.S. government is broken. We need, in effect, a surge, a reformist surge, for the whole U.S. government.

Watch it:

[flv http://video.thinkprogress.org/2008/05/kristolsurge4ever.320.240.flv]

It is entirely unclear what Kristol is talking about. But following his Iraq “surge” analogy to its logical conclusion, it seems Kristol is advocating for either 1) an escalation in domestic government staffers to “reform the U.S. government,” 2) more domestic agencies, or 3) a Petraeus-like czar to oversee a government surge.

But isn’t Bill Kristol — a staunch conservative — an advocate of “limited government?” It is odd then that he would suggest such a domestic “surge” for McCain, given that expanding government to change the government is the complete opposite of that philosophy.

All this proves is that Kristol just “really, really loves the surge.”

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