Plan boosts auto industry Op-Ed By Sen. John McCain, Detroit Free Press

Op-Ed By Sen. John McCain, Detroit Free Press

August 25, 2008

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Our car manufacturers, the businesses that supply them and the Great Lakes region are confronting record oil prices, high health care costs, a credit crunch -- all the ills of a weakening economy. I have tremendous faith that the skills, energies and ingenuity of the workers of the American auto industry will lead to a bright future for the industry and the state of Michigan, despite the challenges of the moment.

But Washington can do its part, starting with adoption of an "all of the above" energy policy to address our dependence on imported oil. My Lexington Project will expand domestic production of oil and natural gas -- addressing the near-term source of distress: high gas prices. But it won't stop there. Under my plan, Detroit will no longer be held hostage to the decisions of petro-dictators and world oil markets. Instead, with a transition to flex-fuel vehicles, hybrids, electric cars and other innovations, we can buy American, drive cheaply and cleanly, and be more secure. I have committed $300 million to delivering advance battery technology. And I will help bring customers to the showroom with a tax credit of up to $5,000 for these cleaner cars.

Despite impressive progress in labor-management agreements, before a weld is even made on an American-made car, it already comes with more health care costs than its Japanese competitors. I have proposed a comprehensive health care reform that will improve accountability from hospitals, drug companies, doctors, medical device providers and insurance companies to deliver cheaper health care with higher quality. This will help our international competitiveness and is part of my plan to create and keep good jobs at home.

While our workers and firms have been doing their job, Washington
has been asleep at the switch. The result is that we now have the second highest business tax rate. I will bring that rate down to 25%, commit to a robust 10% R&D tax credit, and provide investment incentives so our employers keep their competitive edge. That will create and protect Michigan jobs.

These are comprehensive commitments that form one part of an economic surge strategy targeted on our number one problem: jobs. My energy policies, health care reforms, trade policies, budget controls, tax policies and education reforms are a comprehensive set of policies with the right strategy. They will help workers in Michigan and across the United States.

Barack Obama's track record of voting for higher taxes 94 times
in just three years in the Senate, his expensive government mandates and taxes on America's job creators, and at least $1trillion of new government spending are the wrong approaches in a difficult economy.

Our auto companies see their challenges and are transforming themselves to build the next generation of American cars. But they are trying to do so at a time when credit conditions are so unfavorable that it is difficult to get funding for the facilities and technologies to take the steps to the future. In these same circumstances, Washington has stepped in to help Wall Street. We should be prepared to offer similar assistance to our automakers.

Congress passed the Advanced Technology Vehicles Manufacturing Incentive Program, but it has failed to fund it. I believe we should fund it and take action that will assist Detroit and its suppliers in making it through this difficult time.

I am committed to making sure that Michigan's workers are not left to fend for themselves. Ours is the finest workforce in the world, able to compete with anyone. I stand ready to ensure that Washington does its job so they can do theirs