McCain makes pitch for permanent ban on
Internet commerce taxation
BY MARY ANNE OSTROM - Mercury News Sacramento Bureau
U.S. Sen. John McCain on Wednesday brought his call for campaign finance reform
to Stanford University's Hoover Institution, declaring that the current system is ``an
elaborate influence peddling scheme'' that is ``selling the country to the highest
bidder.''
In the middle of a nationwide tour to draw attention to his campaign reform bill
-- and his own underdog presidential campaign -- the Arizona Republican also touted his
support for legislation that high-tech industry has lobbied heavily for.
McCain said he would probably support a permanent ban on taxing Internet
commerce after the current three-year moratorium runs out in 2001. And he chided the
Clinton-Gore administration for belatedly agreeing to sign recent legislation limiting
lawsuits arising from the year 2000 computer glitch, legislation vigorously championed by
high-technology interests.
``It's less than a little comforting and more than greatly ironic that while the
president decided to avoid major economic trauma by signing the commonsense Y2K liability
bill over the vehement objections of the trial lawyers and the vice president, it's still
in the end a close call for him,'' McCain said.
In addition to denouncing trial lawyers, McCain also blamed influential teacher
unions for the failure of most school-voucher proposals and the telecommunications
industry for shaping a landmark 1996 law that McCain says has led to an 18 percent to 23
percent rise in cable rates.
In a rare testy exchange with reporters, who asked the senator to explain why he
considers trial lawyers a special interest but not high-technology companies, McCain said
bluntly, ``I act in the public interest, and I will let the public and everybody else be
the judge as to whether I am acting in the public interest or the special interest.''
McCain explained that a lawmaker decides what's in the public interest based on ``your
experience, your knowledge, the expertise of others, hearings and the legislative
process.''
The Hoover Institution also happens to be home to nearly a dozen fellows who are
advising the campaign of his rival for the GOP nomination, Texas Gov. George W. Bush.
``That's one reason we're here,'' said Dan Schnur, a prominent California political
consultant who is McCain's communications director.
McCain's campaign finance bill would maintain the current $1,000-per-individual
donation limit, ban the unlimited contributions from corporations and labor unions to
national parties known as soft money, and restrict outside groups from running ads on
behalf of candidates.
``It won't work,'' said John Cogan, a Hoover fellow and Bush economic adviser.
``Whether it's the AFL-CIO or the NRA, they are going to spend money to influence the
outcome of elections.''
Cogan, like Bush, believes individual contribution limits should be raised, if
there is immediate Internet disclosure. Bush has said he supports banning soft money.
McCain also used his appearance to draw another distinction with Bush, the GOP
front-runner. Last week, Bush's campaign spokeswoman said he had not yet decided on
whether to call for a permanent moratorium on Internet taxes.
McCain told his Hoover audience that he would support a permanent ban. But
McCain said, although he believes Americans are overtaxed, he would wait to impose any
permanent ban until after a study ordered last year is completed.
