On May 20th, Kentucky will hold its first truly meaningful presidential primary election in recent memory. For the past few months, Senators John McCain, Hillary Clinton, and Barack Obama have been barnstorming the nation, talking about every issue (and every non-issue) imaginable.
While local business leaders have interests as diverse as anyone else, this column will attempt to examine each of the candidates' records on three issues Bluegrass businesses might care about most: the overwhelming cost burdens of employee health care; energy policy, particularly as it pertains to coal; and building a skilled workforce through access to higher education. Here's an introduction to each candidate's specific positions on each issue.
Cost of employee health care
Senator Clinton's plan requires Americans to obtain health insurance, either through their employer or the government. It provides a tax credit to individuals to help defray the costs, and an additional tax credit to small businesses to help them afford coverage for new employees. Large businesses cannot use the tax credit to cover individuals making over $250,000 annually. Senator Clinton's plan also forbids insurance companies from rejecting or limiting coverage for pre-existing conditions. Her plan calls for savings through modernizing health information systems, emphasizing preventive care, and reducing waste.
Senator Obama's plan is roughly similar to Senator Clinton's plan, though it mandates coverage only for children. Senator Obama would create a "National Health Insurance Exchange" to serve as a watchdog and help people choose a plan. Employers that do not offer or make a "meaningful contribution" to the cost of coverage will be required to contribute a percentage of payroll tax toward the costs of coverage through the government. Small businesses may be exempted from this requirement. Senator Obama's plan specifically cites disease management programs and more integrated care as two methods to control costs. He also calls for increased transparency in reporting medical errors and other quality indicators, as well as drug prices.
Senator McCain's plan would "reform the tax code to remove the bias toward employer-sponsored health insurance." His plan provides a $2,500 tax credit to individuals (and $5,000 for families) to increase incentives toward finding coverage. The plan states individuals should be able to purchase coverage from a variety of sources - businesses, organizations, churches, and so on. Individuals should be able to purchase coverage nationwide, including from plans across state lines. His plan also emphasizes "personal responsibility" as it pertains to conditions such as chronic disease, obesity, diabetes, high blood pressure, and illnesses associated with smoking. To further reduce costs, Senator McCain would reform the reimbursement systems under Medicare, saying it should not pay for "preventable medical errors or mismanagement."
Energy, coal and the environment
Senator Obama's energy plan has perhaps the strongest ties to Kentucky. He introduced, along with Kentucky's own Senator Jim Bunning, the Coal-to-Liquid Fuel Promotion Act. The Act provides incentives for research and plant construction. Like Kentucky, Senator Obama's home state of Illinois has extensive untapped coal reserves, and his plan specifically calls for increased investment in "clean coal" technology. Senator Obama has also sponsored legislation supporting biofuels and other alternative sources of energy. He supports a cap-and-trade system of managing carbon emissions - this system requires companies to purchase the rights to emit carbon, and limits the overall amount of carbon that can be released by US firms. Senator Obama also calls increased venture capital investment in environmental technologies and the creation of a "clean technologies" workforce.
Senator McCain's energy policy can be found in the form of a speech given in April 2007 and placed on his campaign website. It's very short on specifics, stating that his policy "won't be another grab bag of handouts to this or that industry and a full employment act for lobbyists," and speaks mainly about ending our dependence on foreign oil and diversifying supply. It's similarly vague on coal - it simply says, "we found a way to cut down acid rain pollutants from burning coal, and we can find a way to use our coal resources without emitting excessive greenhouse gases." On the environment, he says in a videotaped speech on his site that "somehow we have lost our way on the environment." Contrary to the opinions of some in Kentucky, Senator McCain says in a video on his website, "I believe climate change is real, I think it's devastating, and we have to act." The video doesn't offer specifics on how he would reduce greenhouse gasses, however.
Senator Clinton also calls for a cap-and-trade system on carbon emissions, and she briefly mentions her support for coal companies investing in clean coal technology. Like Senator Obama, Senator Clinton appears to strongly emphasize creative financial investments to stimulate energy research and new technologies. She would create a $50 billion Strategic Energy Fund to increase investment in basic energy research. She would create a new government agency modeled after the Department of Defense's research arm for new energy research. She supports the creation of a new "Connie Mae" program to help low- and moderate-income families buy green homes and invest in green home improvements. She also would require all publicly-traded companies to report all their financial risks due to climate change to the Securities Exchange Commission.
Access to higher education
This columnist was not able to find specific information regarding Senator McCain's plans to make higher education more affordable and accessible on the campaign website. He has consistently supported tax-free savings accounts for education expenses. He voted against an amendment to the FY 2006 Budget Resolution that would close corporate tax loopholes to restore cuts in vocational education, to increase Pell Grants to $4,500 and provide up to $23,000 in student loan forgiveness for students who go on to teach math or science.
Senator Clinton would establish a $3,500 college tuition tax credit. She also supports increasing Pell Grants to $4,800, simplifying the financial aid process for students, and increasing support for students who go on to public service. She would create a $250 million "Graduation Fund" to help colleges improve their graduation rates, and would require greater transparency through a "truth in tuition" reporting program. She also calls for investing another $500 million in community colleges.
Senator Obama calls for a $4,000 tuition tax credit and also supports simplifying the financial aid process by replacing the federal financial aid form and giving taxpayers the option of checking a box on their tax forms, automatically sending financial information to schools when necessary. He would increase Pell Grants to $5,100. He also would establish a program for high school juniors to make sure they are aware of college opportunities and adequately preparing for the next step in education.
Of course, these summaries of candidates' positions are just that - summaries taken from campaign websites or other readily available online sources. They don't tell the whole story, and readers should do their own research to learn the facts. If readers feel this column misrepresents a candidate's position or isn't accurate, please let Business Lexington know by commenting on the bizlex.com website or through a letter to the editor.
David Wescott is a Lexington-based vice president for APCO Worldwide, a global public affairs firm headquartered in Washington, D.C. He served as an aide to a U.S. Senator, but has not endorsed a presidential candidate or contributed to a campaign. He writes a blog about technology, policy and communications issues called "It's Not a Lecture," which can be found online at http://itsnotalecture.blogspot.com.