Campaign Countdown

In a highly competitive election year, White House hopefuls offer varied positions

By Mary Lynn F. Jones

First Published: April 2008

When the nation’s 44th president takes office next January, he or she will have a powerful voice on issues in Washington, including several affecting the newspaper industry. Expected to remain closely divided after this fall’s elections, Congress surely will play an important role as well. But from signing executive orders to nominating individuals for key posts at federal agencies to persuading members of Congress on legislation, the next occupant of the White House will help set policies with potential consequences for newspapers.

So as the presidential race heats up, PRESSTIME looks at the candidates’ records and positions on several issues affecting newspaper companies and media organizations. With the race for the Democratic nomination too close to call at presstime, both Democratic Sens. Hillary Clinton of New York and Barack Obama of Illinois are included, along with the presumptive Republican nominee, Sen. John McCain of Arizona.

FOIA/Federal Shield Law/Government Openness
In December, President Bush signed into law the OPEN Government Act (S. 2488), which the Senate passed earlier that month by unanimous consent, to strengthen the Freedom of Information Act (“Bush Signs FOIA Reform Bill,” February, p. 12). Last October, the House passed a federal shield bill by a 398-to-21 vote; the Senate Judiciary Committee also passed a bill (S. 2035) the same month, although the full Senate had not voted on it as of presstime (“Federal Shield Bill Awaits Vote in Senate,” December 2007, p. 13). NAA pushed for passage of the OPEN Government Act and advocates passage of a federal shield bill to protect reporters from having to reveal their confidential sources in federal court except in limited instances, such as those involving a threat to national security or imminent bodily harm.

McCain: In October, McCain said he supports a federal shield law “in principle,” according to The Arizona Republic in Phoenix. He added, “I really feel that freedom of the press is a constitutional right, as we all know, and should be protected as much as humanly possible.”

Clinton : In a Sunshine Week campaign survey in March, Clinton said she wants to have “an open, transparent government that is accountable to the people." She also said she would nominate an attorney general who is "committed to openness and transparency."

Obama: As a state senator in Illinois, he co-sponsored a bill that was signed into law requiring government agencies to make video or audio recordings of private meetings. In the U.S. Senate, Obama co-sponsored the OPEN Government Act and the Federal Funding Accountability and Transparency Act, which established an online database, available at www.usaspending.gov, that allows citizens to track government spending for contracts and grants. That bill also was signed into law. If elected president, Obama has said he will allow the public to comment on non-emergency legislation for five days on the White House Web site, www.whitehouse.gov, before signing bills into law.

Estate Tax Repeal
President Bush signed legislation in 2001 to reduce the estate tax gradually until it falls to zero in 2010 for one year. But unless the next president acts before Dec. 31, 2010, the tax will return in 2011, exempting the first $1 million of an estate and taxing the rest at 55 percent. Although several bills were introduced in the House last year to repeal or relax the tax permanently (“Estate Tax May Stay on Congress’ Agenda,” November 2007, p. 13), none had passed as of presstime.

While NAA supports permanent repeal of the estate tax, the Association also has backed compromise proposals that would tie the tax to the capital gains rate, which is currently 15 percent, given congressional concerns about the current budget deficit.

McCain: In 2002, McCain voted against an amendment to permanently repeal the estate tax. Last year, he voted for an amendment to exempt the first $5 million of an estate and reduce the top tax rate to 35 percent. In a December interview, he told CNBC he favors abolishing the estate tax.

Clinton : She also voted against a 2002 amendment to repeal the tax permanently, and against the 2007 amendment to raise the exemption to $5 million and set a 35 percent top tax rate. If elected president, Clinton has said she would freeze the tax at its 2009 level, meaning the first $3.5 million of an estate would be exempt and the rest would be taxed at a top 45 percent rate. She would use the tax revenue to provide a $3,500 college tuition tax credit and for other initiatives.

Obama: In 2006, he ridiculed efforts to repeal the estate tax as the “Paris Hilton tax break.” In his 2006 book, The Audacity of Hope, Obama wrote that “it would be hard to find a tax cut that was less responsive to the needs of ordinary Americans or the long-term interests of the country.” Obama voted against the 2007 amendment to raise the exemption to $5 million and establish a 35 percent top rate.

Environment
Members of the current Congress have introduced several bills aimed at reducing greenhouse gas emissions. None had passed the House or Senate as of presstime. Most of the bills under consideration take a cap-and-trade approach, putting a cap on the level of U.S. emissions and then allowing businesses to trade credits if they use more or less than the specified limits, respectively. NAA is monitoring the bills closely, as they could increase newspapers’ operations costs by forcing them to comply with stricter environmental standards and pay higher prices for carbon-based energy (“Balancing Act,” March, p. 34).

McCain: In a statement before the Senate Environment and Public Works Committee last year, McCain called global warming “the most important environmental issue of our time.” In 2007, he co-sponsored the Climate Stewardship and Innovation Act (S. 280), which would gradually decrease the emissions cap to roughly 33 percent of 2000 levels by 2050. He sponsored similar bills in 2003 and 2005.

Clinton : She is a co-sponsor of the Global Warming Pollution Reduction Act (S. 309), which would reduce greenhouse gas emissions by 80 percent from 1990 levels by 2050. She also would require all publicly traded companies to report financial risks due to climate change in their annual filings with the Securities and Exchange Commission.

Obama: Like McCain, he co-sponsored the Climate Stewardship and Innovation Act in 2007 and 2005. He also is a co-sponsor of the Global Warming Pollution Reduction Act. As president, he would require that 25 percent of electricity consumed come from sustainable energy sources by 2025, and that new buildings be carbon-neutral by 2030.

Cross-Ownership
In December, the Federal Communica-tions Commission voted 3-2, along party lines, to relax the 1975 media ownership rule by allowing a company to own a newspaper and a broadcast television station in the nation’s top 20 markets (“FCC Relaxes Cross-Ownership,” February, p. 13). The same month, Tribune Co. in Chicago filed a lawsuit in the D.C. Circuit Court of Appeals seeking permanent waivers to the rule in four markets where the company owns newspaper and broadcast properties. In addition, the FCC must respond to a remand from the 3rd U.S. Circuit Court of Appeals in Philadelphia. And in March, Sen. Byron Dorgan (D-N.D.) introduced a resolution of disapproval that would stop the FCC from implementing the new rule (see story, p. 19). Both Clinton and Obama are co-sponsors of the resolution.

If the courts uphold the new rule this year, the new president would likely have little effect on the issue beyond the appointment of a new FCC chairman, who would decide when and if to review waiver requests. The Senate would have to confirm the president’s appointment. If Clinton or Obama wins the White House, the majority makeup of the FCC would change 3-2 in favor of the Democrats following the appointment of a new chairman. All three candidates have said they are against media consolidation. NAA supports a full repeal of the cross-ownership ban.

Labor/Employment Issues
Congress is considering several pieces of legislation that would affect workers’ rights and how companies classify workers for tax purposes. The Employee Free Choice Act (S. 1041) would allow employees to form a union if a majority of them sign cards authorizing the union. The House passed the bill by a 241-to-85 vote in March 2007, but the Senate had not voted on the legislation as of presstime (“On the Hill,” May 2007, p. 17). The Bush administration has pledged to veto the bill.

Separately, the Independent Contractor Proper Classification Act (S. 2044) seeks to remove protections employers have had regarding the classification of workers as independent contractors under Section 530 of the tax code. The bill would eliminate any future “safe harbor” protection—through which newspapers have classified carriers and other contractors as independent contractors—when signed into law. It also repeals employers’ ability to rely on “industry practice” for claiming the safe harbor protection 60 days after the bill’s enactment. In addition, the Treasury Department would have 90 days to develop new procedures to determine whether a worker is classified as an independent contractor or employee. No companion House legislation had been introduced as of presstime.

McCain: At a Republican debate in Michigan last October, McCain said employees should have the right to join a union but should not be forced to do so.

Clinton : She is a co-sponsor of both the Employee Free Choice Act and the Independent Contractor Proper Classification Act.

Obama: He also co-sponsored the Employee Free Choice Act and sponsored the Independent Contractor Proper Classification Act.

For more information about the candidates, visit www.johnmccain.com, www.hillaryclinton.com and www.barackobama.com.