Media Fund Title: "Corporate Headquarters"

Republican National Committee ^ | May 18, 2004

[RWR8189]

Rhetoric

NARRATOR: “Instead of protecting pensions, George Bush supported a bill giving Enron huge new tax breaks.”

CHYRON: ENRON

The Facts

President Bush Has Offered Plan To Protect Pensions

President Bush Proposed Giving Workers Better Information About Their Pensions. “To enable workers to make independent, informed decisions, employers will be required to give workers quarterly benefit statements that include information about their individual accounts, including the value of their assets, their rights to diversify, and the importance of maintaining a diversified portfolio. The Secretary of Labor will be given authority to tailor this requirement to the needs of small plans. Under current law employers are only required to make statements available to workers on an annual basis.” (The White House, “Specifics On The President’s Plan To Strengthen Retirement Security,” Press Release, 2/28/02)

President Bush Proposed Additional Protections For Retirement Savings. “The President has proposed other important, commonsense proposals to help protect the retirement savings of American workers:

ü      Allowing workers to diversify their investments in employer stock after three years.

ü      Providing workers quarterly benefit statements that explain the value of diversified investments.

ü      Giving workers better access to much-needed investment advice from professional advisers acting in the workers’ best interest.” (The White House, “President Takes Action To Protect Pensions And Retirement Security For All Americans,” Press Release, 10/19/02)

Bush Tax Cut Benefits Middle Class And Small Businesses

Wealthy Taxpayers Shouldered More Of The Tax Burden After 2003 Tax Cut. “[A]ccording to the Urban Brookings Tax Policy Center … the fraction of the total tax burden falling on the richest 5 percent is actually higher now – after Bush’s tax cuts – than it was before. That means, proportionately, the little guys got the bigger tax cut.” (Donald Luskin, “Con Aired,” National Review Online, 1/27/04)

Urban-Brookings Analysis. Before the 2003 tax cuts took effect, the wealthiest 10 percent shouldered 67.2 percent of the total income tax burden while the middle income earners shouldered only 5 percent of the burden. After the 2003 tax cuts took effect, the wealthiest 10 percent paid 71.1 percent of the income tax burden, while the income earners paid 3.6 percent. (Urban-Brookings Tax Policy Center Website, “Pre-EGTRRA Distribution Of Individual Income And Payroll Tax Burden By Percentile, 2003,” Accessed 1/30/04; Urban-Brookings Tax Policy Center Website, “Current-Law Distribution Of Individual Income And Payroll Tax Burden By Percentiles, 2003,” Accessed 1/30/04)

Top Five Percent Of Americans Pay More Than Half Of Income Taxes. ABC’s John Stossel: “The top 1 percent of Americans, that’s those who earn about $300,000 a year, pay 34 percent, more than a third of all income taxes. And the top 5 percent, those making over $125,000, pay more than half.” (ABC’s “20/20,” 1/23/04)

More Than 1.24 Million Small Business Entrepreneurs Benefited From President’s 2003 Tax Cut. (Heritage Foundation Website, “Reality Check: Tax Relief & Economic Growth Briefing Room,” www.heritage.org, Accessed 2/29/04)

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Rhetoric

NARRATOR: “Instead of giving seniors real prescription drug benefits, Bush gave drug companies billions in his Medicare bill.”

CHYRON: Pfizer

The Facts

New Medicare Law Guarantees All Seniors Access To Affordable Prescription Drugs

Bipartisan Law Provides Significant Prescription Drug Savings For All 40 Million Seniors And Disabled In Medicare. “For the first time in Medicare’s history, a prescription drug benefit will be offered to all 40 million seniors and disabled Americans in Medicare to help them afford the cost of their medicines. Beginning next year, seniors would save 10-25% off the cost of most medicines through a Medicare-approved drug discount card. … Beginning in 2006, seniors without coverage would be able to join a Medicare-approved plan that would cut their yearly drug costs roughly in half, in exchange for a $35 monthly premium.” (“The Bipartisan Medicare Agreement,” Fact Sheet, The White House, 11/17/03)

Bush Administration Implemented Program To Save Consumers As Much As $3.5 Billion Each Year By Moving Low-Priced Generic Drugs To The Market Faster. “President Bush today announced new regulations to hasten the pace at which generic drugs are brought to market, a measure the administration says will save $3.5 billion annually after it takes effect Aug. 18. … Specifically, the regulations will limit original drugmakers to one 30-month ‘stay’ blocking the entry of generic drugs by filing patent lawsuits. … The FDA also said it will make internal changes, speeding its review procedures to reduce the time it takes for generic drugs to be declared safe. With a $13 million increase in its budget for generic drugs requested by Bush, the FDA aims to reduce its generic drug application process to 17 months from 20 months.” (Dana Milbank, “New Drug Rules Aim To Speed Generics,” The Washington Post, 6/13/03)

Over 60 Health Care And Seniors’ Organizations Support Medicare Law, Including 35 Million-Member AARP, American Hospital Association And American Medical Association.  (Fact Sheet, Office Of The Majority Leader, 11/18/03)

Attacks On Drug Companies Are “Political Scare Tactics” 

Analyst Biased Against Medicare Bill Came Up With “$139 Billion Windfall” Figure Cited By Democrats. “A study released October 30 said that the Medicare bill would give the pharmaceutical industry a ‘windfall profit’ totaling at least $139 billion over 10 years. The analysis of the bill was coauthored by Alan Sager at Boston University’s School of Public Health. Sager, who opposed the bill, said that drugmakers would see their profits jump largely because the government was forbidden to negotiate lower prices, a practice used by the Department of Veterans Affairs and other government agencies.” (“U.S. Congress Passes Medicare Overhaul, Drug Benefit Created,” Facts On File World News Digest, 11/25/03)

Discounts Negotiated Under New Medicare Law Will Balance Out Profits From Increased Drug Sales. “Many drug executives and some analysts said that the increase in volume of drug sales would be balanced out by discounts negotiated by pharmacy benefits managers and insurers, however.” (“U.S. Congress Passes Medicare Overhaul, Drug Benefit Created,” Facts On File World News Digest, 11/25/03)

Head Of AARP Said Democrats Are Resorting To “Political Scare Tactics” Because Of Election-Year Politics. “[AARP CEO William] Novelli has shot back at critics for using ‘political scare tactics,’ arguing that partisanship and election-year politics explain why most Democrats won’t support what he sees as a good-government compromise.” (Bara Vaida, “AARP’s Big Bet,” The National Journal, 3/13/04)

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Rhetoric

NARRATOR: “Instead of fighting corporate corruption, George Bush gave no-bid contracts to Halliburton, a company caught overcharging for fuel and food for our soldiers in Iraq.”

CHYRON: HALLIBURTON; DANGER! HIGH VOLTAGE

The Facts

President Bush Has Fought Corporate Corruption

President Bush Created Corporate Fraud Task Force. “[O]n July 9, 2002, the President, by Executive Order, created the Corporate Fraud Task Force. Headed by Deputy Attorney General Larry Thompson, the Task Force includes, among others, US Attorneys, the FBI and SEC to oversee the investigation and prosecution of financial fraud, accounting fraud and other corporate criminal activity, and to provide enhanced inter-agency coordination of regulatory and criminal investigations.” (The White House Website, “President’s Ten-Point Plan,” www.whitehouse.gov, Accessed 5/14/04)

President Signed Sarbanes-Oxley Act Of 2002.  “On July 30, the President signed the Sarbanes-Oxley Act of 2002, the most far-reaching reform of American business practices since the time of Franklin D. Roosevelt. … Among other reforms, the legislation:

ü      Created a new accounting oversight board to police the practices of the accounting profession

ü      Strengthened auditor independence rules

ü      Increased the accountability of officers and directors

ü      Enhanced the timeliness and quality of financial reports of public companies

ü        Barred insiders from selling stock during blackout periods when workers are unable to change their 401(k) plans.” (The White House Website, “President’s Ten-Point Plan,” www.whitehouse.gov, Accessed 5/14/04)

One Year Later, Report Shows Positive Effects Of Sarbanes-Oxley In Fighting Corporate Fraud. “The Sarbanes-Oxley law has helped the Justice Department and the SEC step up their enforcement efforts, according to the Financial Services Committee’s report, which noted that the legislation increased criminal penalties for securities fraud to a maximum of 25 years in prison and $2 million in fines. The Sarbanes-Oxley requirement that corporate chief executives and chief financial officers certify their companies’ financial documents has made it easier for President Bush’s corporate fraud task force to uncover ‘sophisticated accounting schemes,’ according to the report.” (“Oxley Praises Corporate Reform Bill One Year Later,” National Journal’s CongressDaily, 7/30/03)

Former Clinton Officials Call Halliburton Charges Ridiculous

Clinton Procurement Official Steven Kelman Calls Allegations Against Halliburton “Somewhere Between Highly Improbable And Utterly Absurd.” “One would be hard-pressed to discover anyone with a working knowledge of how federal contracts are awarded – whether a career civil servant working on procurement or an independent academic expert – who doesn’t regard these allegations as being somewhere between highly improbable and utterly absurd. … Many people are also under the impression that contractors take the government to the cleaners. In fact, government keeps a watchful eye on contractor profits – and government work has low profit margins compared with the commercial work the same companies perform. … As for the much-maligned Halliburton, a few days ago the company disclosed, as part of its third-quarter earnings report, operating income from its Iraq contracts of $34 million on revenue of $900 million – a return on sales of 3.7 percent, hardly the stuff of plunder.” (Steven Kelman, “No ‘Cronyism’ In Iraq,” The Washington Post, 11/6/03)

Clinton’s Undersecretary Of Commerce Says Halliburton Controversy Is Overblown. “William Reinsch, president of the National Foreign Trade Council in Washington, is a Democrat who served under Clinton as undersecretary of commerce. He said he disagrees with most of the Bush administration’s policies, but thinks the Halliburton controversy is overblown. ‘Halliburton has a distinguished track record,’ he said. ‘They do business in some 120 countries. This is a group of people who know what they’re doing in a difficult business. It’s a particularly difficult business when people are shooting at you. … I don’t think we went to war because we thought it would help selected American companies.’” (James Rosen, “Is Iraq’s Reconstruction Rigged?”  The [Raleigh] News & Observer, 10/5/03)

Army Corps Of Engineers Says “There Is No Reason To Think Halliburton Has The Inside Track.” “Scott Saunders, a spokesman for the [U.S. Army] Corps [of Engineers], said there is no reason to think Halliburton has the inside track. ‘We’ve never really done something like this before – gone in and tried to fix a country while it’s still being terrorized,’ he said.” (James Rosen, “Is Iraq’s Reconstruction Rigged?”  The [Raleigh] News & Observer, 10/5/03)

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Rhetoric

NARRATOR: “George Bush: He’s turned the White House into corporate headquarters.”

CHYRON: CORPORATE HEADQUARTERS; GE; Pfizer; EXXON; FOX; ENRON; HALLIBURTON; www.MakeAmericaworkforus.org, PAID FOR BY THE MEDIA FUND

The Facts

Kerry Is Candidate Of Special Interests

Center For Public Integrity’s Charles Lewis: Kerry “Brought To You By Special Interests.” “‘The note of reality is he has been brought to you by special interests,’ said Charles Lewis of the nonpartisan Center for Public Integrity, a watchdog group that has closely studied the senator’s relationship with special interests. ‘It’s very hard [for Kerry] to utter this rhetoric without some hollowness to it.’” (Jim VandeHei, “Kerry Leads In Lobby Money,” The Washington Post, 1/31/04)

ü      Lewis: “The Idea That Kerry Has Not Helped Or Benefited From A Specific Special Interest, Which He Has Said, Is Utterly Absurd.” (John Solomon, “Kerry Blocked Law, Drew Cash,” The Associated Press, 2/4/04)

Sen. Zell Miller (D-GA): Kerry Is “Olympic Gold Medalist, When It Comes To Special Interest Money.” “As far as special interests … [T]his man [Kerry] has wallowed in their money. Of all of the senators, he got more special interest money than any senator ever has in 15 years. I mean, he is the Olympic gold medalist, when it comes to special interest money.” (Zell Miller On Fox News’ “Hannity And Colmes,” 2/3/04) 

Media Fund Running Multi-Million Dollar Anti-Bush Campaign

“The Media Fund Has Spent $23 Million On Anti-Bush Ads In Battleground States.” (Thomas B. Edsall, “In Boost For Democrats, FEC Rejects Proposed Limits On Small Donors,” The Washington Post, 5/14/04)

Media Fund Advisor And Former Kerry Campaign Manager Jim Jordan: “I’m Working Every Day Still, From The Sidelines Here, To See That [Kerry’s] Elected.” (“Interest Groups,” The National Journal, 2/28/04) 

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