Copyright 1999 The Chronicle Publishing Co.
The San
Francisco Chronicle
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JULY 8, 1999, THURSDAY, FINAL EDITION
SECTION: NEWS; Pg. A4
LENGTH: 597 words
HEADLINE:
McCain Calls Campaign Cash the Root of Corruption;
GOP candidate slams
influence peddling'
BYLINE: Robert B. Gunnison,
Chronicle Political Writer
BODY:
GOP presidential
hopeful John McCain told an audience at the Hoover Institution yesterday that he
backs a permanent ban on taxes on Internet
sales, although he later said that the ban needs more study.
As
part of a three-day California campaign swing, the Arizona senator also blasted
federal campaign finance laws as the obstacle to fundamental political change in
everything from education and taxes to defense spending and Y2K lawsuits.
"We are all corrupted. I know that is a harsh judgment, but it is a fair
one," he told his luncheon audience of about 100 people on the Stanford
University campus. "Anyone who believes America is greater than the sum of its
special interests should stand with me."
Special interest money, he
said, "is an elaborate influence-peddling scheme" that contributes to the
public's mistrust and cynicism about politics.
He admitted that in the
past, he had been tempted to vote in ways that would benefit campaign
contributors. But he said, "I do not disparage the integrity of my colleagues."
In the Senate, McCain and Sen. Russell Feingold, D-Wis., have introduced
a bill aimed at curtailing the influence of money on politicians holding federal
office. The measure has been vehemently opposed by members of McCain's own
party.
A similar measure passed the House of Representatives last year,
and he and Feingold are struggling to bring the bill to a vote in the Senate
this summer.
"It is the first reform and a vital gateway to other
reforms," McCain said.
The McCain-Feingold bill would ban unlimited,
unregulated donations to political parties, the so-called soft money that led to
campaign-financing abuses in the 1996 elections. The bill also would tightly
regulate advertisements by independent groups that attack or tout various
candidates during the final two months of an election campaign.
For his
own campaign, McCain has raised $6 million, more than all other
GOP presidential candidates except Gov. George W. Bush of Texas, whose
staggering $36 million set a record.
McCain's tirade
against the evils of special interest money dominated most of his speech. But he
also touched on issues of local interest for Silicon Valley.
"I have
advocated a permanent ban on Internet taxes," McCain said. "The ban must be
permanent because you can be sure the special interests yearn to tap the cash
cow to finance their projects."
But McCain later said he favors a
permanent ban "with this caveat" -- he wants to wait for the findings of a
federal commission looking into the issue.
Congress last year enacted a
three-year ban on taxes on Internet sales, but
also created the Advisory Commission on Electronic Commerce to recommend future
tax policy.
The 19-member commission met for the first
time last month, and a majority of the commissioners said Internet taxes are
inevitable.
Last week, Bush spokeswoman Karen Hughes said the Texas
governor is still considering whether commerce on the Internet should be taxed.
McCain also criticized efforts of trial lawyers and others who opposed
his Y2K legislation, which passed last week.
His bill would give
companies 90 days to fix Y2K computer problems before lawsuits could be filed,
and it encourages mediation in a further attempt to limit litigation.
But opponents said it would take away rights of consumers and small
businesses.
McCain said he was acting "in the public interest" and
brusquely dismissed a reporter's suggestion that his opponents might view their
cause the same way. "I know what is in the public interest," he said.
GRAPHIC: PHOTO, John McCain told a
Stanford audience he wants to ban taxes on Internet
sales.
LOAD-DATE: July 8, 1999
