McCain, Kyl warn of government burdens on private sector




Sens. John McCain and Jon Kyl take questions at a Scottsdale luncheon sponsored by the Arizona Chamber of Commerce and Industry.As the U.S. economy struggles to regain its footing and federal stimulus dollars flow through the country, Sens. John McCain and John Kyl warned of the negatives consequences of government interference in the private sector.

The Republican senators derided what they viewed as excessive taxation, spending and borrowing by the federal government at an April 15 luncheon that was sponsored by the Arizona Chamber of Commerce and Industry and promoted as an update from the nation's capital. McCain and Kyl urged people who attended the event to tell their elected officials to let the free market be free and keep government involvement at a minimum.

"It's up to you to let folks know why these are bad ideas, if you agree with me, because you are the experts who can make that case," Kyl said. "And make it before it's too late, because the other side is really in a hurry on this. They want to accomplish all of this before, in effect, America has awakened to the fact of what's happening."

In highlighting their opinions, the senators pointed to President Barack Obama's successful push for Rick Wagoner, the former CEO of General Motors, to step down. General Motors is preparing for a possible bankruptcy filing, despite receiving about $13 billion in federal money to help keep the company afloat.

That type of government interference in the private sector could serve as a cautionary example for entrepreneurs, Kyl said, and could discourage them from borrowing federal money or taking part in any government assistance programs that might be offered. Instead of getting more involved, Kyl suggested that the federal government simply announce its intention to involve itself less in the private sector.

"Just announce in advance that we're not going to allow any tax increases, and we hope to reduce taxes when the opportunity comes, and that will send a signal that the American business community can plan for the future without fearing that their investment is going to be taken from them with a higher capital gains tax or a higher marginal income tax rate," Kyl said. "Otherwise, just keep your hands off. The private sector is very capable of bouncing back here if the government doesn't get in its way."

Looking forward, McCain and Kyl urged people to be wary of upcoming attempts at health care reform by Obama and the Democrat-controlled Congress. During his 2008 presidential campaign, McCain suggested the elimination of existing tax breaks for employers who provide their employees with health insurance, and replacing it with a $5,000 tax credit for working families to pay for their own insurance. The proposal was harshly criticized during the campaign, he said, but it's an idea that Obama is now considering.

"You really are going to have significant savings in health care costs if you place the responsibility on the individual and their family. It's a fundamental principle," McCain said.

McCain's ideas on health care reform didn't end with government tax credits either. To "my friends in the health care business," the senator said they too must work to eliminate waste and mismanagement in the industry.

Another point of contention between the senators and the White House was on the use of nuclear energy, which McCain touted as way to reduce greenhouse gas emissions, curtail America's dependence on foreign oil and minimize the impact the country will experience from rising oil prices once the recession ends. France, he said, is the only nation in the world that came close to reducing its greenhouse gas emissions to the levels called for in the Kyoto Protocol because it gets about 80 percent of its electricity from nuclear power.

McCain criticized Obama's opposition to expanding nuclear power capabilities in the U.S., saying "My great disappointment with this administration is what amounts to a rejection of nuclear power."

"We will maximize solar. But you also have to have nuclear power in any equation that's going to reduce and eventually eliminate our dependence on foreign oil, and reduce greenhouse gas emissions. We've got to continue to fight for it," McCain said.

Kyl warned that if Arizona wishes to generate energy to sell to other states, it should keep in mind that power generation requires vast amounts of a precious resource that Arizona is often lacking - water. Kyl told the audience, "As you develop these policies, you need to think about all of the ramifications."

While their opposition to Obama's domestic policies was fierce, McCain and Kyl praised the president's foreign policy, at least toward the trouble spots of Afghanistan and Pakistan. Obama has pledged to increase the number of American military personnel in Afghanistan, where the U.S.-backed government is still seeking to solidify its control over the largely untamed country. Pakistan, a nuclear power, requires a continued U.S. commitment as well, Kyl said, to combat the rising tide of Islamic extremism promoted by groups such as the Taliban.

"There's some huge challenges there. But at least I can report that on the general approach that the administration is taking in those two places, it has the support of Republicans in the U.S. Senate and the House of Representatives. If they will not try to do it on the cheap - that is to say they will send the forces that are necessary - I think we can do this," Kyl said of Obama's plans for Afghanistan.

With regard to the recent calls by several border-state governors, including Arizona Gov. Jan Brewer, McCain said he and Kyl recently wrote to Defense Secretary Robert Gates, urging him to accede to Brewer's recent request for an additional 250 National Guard troops to assist law enforcement agencies at the U.S.-Mexico border. The requests by the governors were prompted by continuing violence in the border region that began when Mexican President Felipe Calderon cracked down on drug cartels in the area.

"I don't envision them for an extended period of time, but right now we need the Guard on the border because of this violence," McCain said.

On the American side of the border, Kyl said comprehensive immigration reform, a movement that was led by McCain in 2007, would likely have to wait for two reasons. For one, he said, the recession has diminished the demand for temporary guest workers. The other is that the federal government's plate is full already.

"Right now I don't think that focus would be possible given all the other things that we're doing," Kyl said after the speech.

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