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McCain, Republican leaders differ on solutions to fix ailing economy
Written by Jackie Kucinich   
 
The release of Sen. John McCain’s (Ariz.) economic plan on Monday highlighted two issues — drug re-importation and earmark reform — that divide the GOP presidential standard-bearer and Republican leaders on Capitol Hill.

The release of Sen. John McCain’s (Ariz.) economic plan on Monday highlighted two issues — drug re-importation and earmark reform — that divide the GOP presidential standard-bearer and Republican leaders on Capitol Hill.

In his agenda for reviving the ailing economy, McCain calls for opening drug markets to more competition “through the safe re-importation of drugs.”

President Bush, congressional Republicans and the pharmaceutical industry have long opposed re-importation, which is mostly backed by Democrats.

McCain has been a steady supporter of drug re-importation, but its inclusion in his 15-page “Jobs for America” economic plan is a stark reminder that the Arizona senator has different solutions from many of his colleagues’.

Michael Steel, a spokesman for Minority Leader John Boehner (R-Ohio), acknowledged the difference of opinion on re-importation, but said that government control of the healthcare system is the larger issue.

“Prescription drug importation is a complicated issue that Republicans in the House and Senate have long debated,” he said. “The real issue when it comes to healthcare is whether the American people want the government takeover over of the healthcare system that Democrats propose, or the sort of patient-centered healthcare reforms that House Republicans and Sen. McCain support.”

McCain also addressed his promise to veto every spending bill that contains earmarks and end so-called pork barrel spending, a topic that has caused House GOP leadership headaches over the past year.

Since their January retreat, House Republicans have found themselves caught between the demands of the conservative House Republican Study Committee (RSC) to install a unilateral moratorium on earmarks and the demands of appropriators and targeted members who want projects for their congressional districts.

“Like Sen. McCain, House Republicans understand that Washington is broken, and we want to fix it,” Steel said, adding that 80 percent of House Republicans supported a moratorium on earmarks and real earmark reform. The moratorium is contingent on Democratic cooperation — a move the majority party has declined to make, citing Democratic reforms to the earmark system.

Senate Republicans have also proposed earmark reform changes but have not adopted them within their conference.

And while Senate Republicans are planning to aggressively push an energy bill this month that has 45 co-sponsors, McCain is not among the bill’s backers.  

“I don’t think he is, but you’ll have to ask him about that,” Senate Minority Leader Mitch McConnell (R-Ky.) said Monday, adding that just because senators aren’t co-sponsoring the bill doesn’t mean they won’t support it.

Tucker Bounds, a spokesman for McCain, said that the economic plan was a reflection of the Arizona Republican’s  career-long independent record and that despite their policy differences on certain issues, McCain would work to win back the House and the Senate for the GOP.

“John McCain has remained committed to helping win majorities in both houses, and building on his record of putting his country first — which includes independent stands in Congress,” said Bounds. “John McCain’s message of reform, prosperity and peace is built on the idea of forming alliances with Republicans and Democrats alike to make meaningful change for everyday Americans.”

McCain’s plan to provide relief for individuals facing home foreclosure could help the House GOP find footing on an issue where they have struggled to reach consensus.

Under McCain’s plan, homeowners in danger of foreclosure who received their sub-prime mortgages after 2005 would be eligible to refinance for a new, 30-year fixed-rate mortgage — provided they prove “creditworthiness” when the loan was initially granted.

Steel said “While we haven’t seen actual legislative text, Sen. McCain’s proposal sounds entirely consistent with our principles.”   

In their May district work period packet for members, House Republicans suggest two approaches to stabilizing the housing market. The first approach would advocate for legislation that would install a series of reforms of the mortgage industry, including an overhaul of Freddie Mac, Fannie Mae and the Federal Housing Administration as well as increased transparency and requirements for mortgage brokers.

The second approach calls for tax incentives for homebuyers to “jump-start” the economy.

McCain’s plan adds a new layer to the GOP proposal, including a third option of educating homeowners on the availability of other government and private programs that could help families under threat of home foreclosure.

Manu Raju contributed to this report.

 

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