As a follow up to our previous blog entry, Obama vs. Biden The Similarities and Differences in their Tax Views, this week we are taking a deeper look at the tax views of the candidates running on the Republican ticket. Although Gov. Sarah Palin, and Sen. John McCain, have gotten a lot of attention in the media since the Republican National Convention, however most people are spending large amounts of time discussing Palin’s personal life. Instead of slipping around in the reporting on the barbs as they are tossed back and forth, we decided to put together this blog entry comparing the similarities and differences in Palin’s and McCain’s tax views. We hope this will provide more useful information for you as you enter the voting booth in November.
Balanced Budget
McCain:
In July of this year, McCain made a campaign promise to balance the federal budget by the end of his first term – a pretty ambitious goal indeed. Although balancing the federal budget is something both parties agree is important, the strategy McCain hopes to use is much different then his Democratic rival. One of McCain’s main plans is to reforming our healthcare system, Social Security, Medicare, and Medicaid. McCain has also claimed that he hopes to take a hard look at wasteful military spending in Iraq and Afghanistan and use the revenue to help balance the budget. “Since all their costs were financed with deficit spending, all their savings must go to deficit reduction,” a McCain spokesperson was quoted as saying.
Palin:
One of Palin’s most notable decisions as acting governor of Alaska was her choice to sign the largest operating budget in Alaska’s history, $6.6 billion. Right off she began cutting small building and renovation projects throughout the state. The list includes the infamous “Bridge to Nowhere” project which she deemed as wasteful and pledged to spend the funds on more important projects. She also sold the jet purchased by the former governor, as a campaign promise, generating an easy $2.1 million in revenue for her state. While these are all definite moneymaking decisions, Palin confused some onlookers by then promoting future seemingly earmark projects in the future. She raised sales tax just to pay for an additional ice rink and sports facility.
The Difference:
Palin and McCain both want a balanced federal budget, but Palin has more hands-on experience in cutting wasteful spending. In the two years she served as Governor of Alaska, she was able to drastically reduce spending and took on both Democrats and Republicans in her effort to do so. McCain on the other hand has made an impressive campaign promise, but whether he will follow through with it or not remains to be seen.
Nuisance Taxes
McCain:
Taking pride in his reputation as a tax cutter, not raiser, McCain plans to cut “nuisance” taxes on things like gas, utilities, tires, hotel rooms, etc. Part of the reason many candidates like McCain feel nuisance taxes are no longer needed is because they are not only a nuisance, but radically outdated. When the taxes were initially instituted, things like telephones, refrigerators, and certain kinds of fuel were not necessities of their time and thus not taxed. McCain has claimed that if nuisance taxes cannot be repealed entirely, then they should at least be updated and revised to suit current economic conditions.
Palin:
When addressing her state of Alaska in 2007, Palin was adamant about her dislike of nuisance taxes and the toll they were taking on Alaskan citizens. The tax levied on tires was one that particularly bothered Palin, as she claimed that driving in a severe-weather place like Alaska is hard enough with good quality tires. By making it even harder for citizens to afford new tires will put them in danger. She also said in her address that she wanted to reduce business license fees, an unfair tax on brave individuals who want to take the risk of starting a business.
The Difference:
Although McCain and Palin have both spoken out publicly against nuisance taxes, Palin has been much more vocal about the tax. The candidates also both agree on reducing business and corporate tax rates. Although Palin has not been very specific on her business related tax plan, McCain hopes to cut the corporate tax rate from 35% to 25% if elected.
Energy and the Environment
McCain:
On his website and television ads, McCain is quick to empathize with the warming climates and disappearing landscapes in the United States. In policy, however, his actions do not quite back up those statements. While it is true McCain was the first Republican in the Senate to sign onto reducing green house gas emissions, has often been criticized of “flip-flopping” when it comes to his energy policies. Specifically, his positions on the use of ethanol have changed multiple times in the past decade. Originally, he was not a strong supporter of ethanol, and then changed his position when research proved his view was unfound. Then, in February of this year, he reverted to his original anti-ethanol sentiments much to the surprise and confusion of the watching public.
To help promote his energy policies, the McCain camp produced a television ad featuring images of solar and wind energy along with trees and lakes to give viewers a feeling of peace and hope. However, in policy, McCain is a much stronger supporter of Nuclear energy and plans to commit billions to the advancement of nuclear energy in his climate change plans. In fact, McCain has claimed that he hopes to build 45 new nuclear power plants by 2030. McCain’s goal is to help provide cheaper energy to the American taxpayers, and although power plants will provide more energy they will cost millions, if not billions, to construct and operate.
Palin:
Alaska has some of the highest gas and energy prices in the country. Along with the high prices, the demand for such energy is also very high due to cold weather and sprawled out cities. To help ease the energy woes of her state, Palin proposed a one-time $1,200 rebate to qualifying Alaskans. She also signed into law a one-year gas tax holiday for Alaska to help ease the high fuels costs. Like many Alaskans, Palin is also a huge supporter of offshore drilling, and drilling of ANWR, the Arctic National Wildlife Refuge in Alaska.
Alaska’s state budget has been in the positive for years partially due to the big checks the state’s government receives from oil companies drilling in their state. Last year Alaska earned an estimated $6 billion in revenue from oil taxes, partially because of windfall taxes that were supported by Palin. With so much money coming into the government from the oil industry, it is no surprise that Palin supports more drilling. However, if the amount of drilling in Alaska were to increase would the federal government get a piece of the profit or just Alaska?
In addition to her oil support, Palin is also skeptical that human behavior largely affects the global climate. While she recognizes ice in her home state is melting, she feels it is the natural course of earth, not caused by green house gas emissions. Palin also fought to have polar bear taken off the endangered species list, stating that the population was thriving, and that they are dangerous to humans. Some experts criticize Palin, claiming that removing polar bears from the endangered species list would lessen regulations about drilling in the arctic.
The Difference:
McCain’s and Palin's energy policies seem to be quite consistent, to end America’s dependence on foreign oil. They both support off shore drilling, a gas tax holiday, as well as developing alternative fuel sources. However, unlike Palin, McCain seems to have more mixed views on windfall taxes on oil corporations. He has previously attached Barack Obama’s support of such taxes, but recently revised his attacks and claimed that he might consider them.