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Monday, January 24, 2000

GOP presidential candidate Steve Forbes hopes Monday night's Iowa caucus establishes his campaign as the clear alternative to front-runner George W. Bush. Forbes claims that Bush lacks solid conservative credentials and has repeatedly questioned the Texas governor's tax plan and abortion stance.

Four-term Rep. Nick Smith (R-Mich.), a member of the Agriculture, Budget and Science committees is a Forbes supporter and has been a prominent advocate of Social Security reform on Capitol Hill. A businessman and dairy farmer by profession, Smith represents Michigan's 7th District, an area that typically votes Republican. Smith joined us for a live discussion Monday to discuss Forbes's chances. The transcript follows:

Free Media: Good afternoon Rep. Smith, and welcome. You are in Iowa campaigning for Steve Forbes. Why do you think Mr. Forbes should be the next President of the United States?

Rep. Nick Smith: I've known, talked to, and followed Steve Forbes for the last six years. I have a tremedous amount of respect for him as an individual and as a man who does what he says he's going to do. And he has the intelligence and the vision to do what is necessary to keep this country economically strong. I separate that into three reasons:

First, he is the candidate that's been willing to have detailed solutions to the major problems that affect our lives in America. Whether it's Social Security or Medicare or taxes, he has developed a detailed plan on what to do rather than just talk about it.

Second, there's his vision and experience. He has now had business dealings in more than 45 countries around the world and knows their leaders. I think one of the significant challenges for the next president will be establishing foreign policy and convincing other nations that it's going to be a consistent policy. He thinks it is important, as I do, that capital investment be a priority with Congress and the laws that we pass. First, physical capital investment and encouraging the research, development and use of state-of-the-art tools that will keep us competitive. The other is human capital investment, which is education.

Third, I am convinced that we need to return to the White House a president with integrity and morality. It would be nice for the American people to know we have someone who is not going to be swayed by special interests or lobbyists in anticipation of large campaign contributions for the next election. Steve Forbes does not take special interest money.

Logan, Utah: Why didn't Steve Forbes run for the Senate first to give himself experience as an elected official before running for president? Many feel he could win a Senate seat from his home state. He seems to have "wasted" many years and millions of dollars, "swinging for the fence" instead of first going for the "base hit." The biggest problem I have with him is his lack of work experience for the presidency. It weakens him as a credible candidate. He's not getting any younger, why not go for the Senate seat now?

Rep. Nick Smith: There's an advantage in Steve Forbes not being a career politician. He'll be there for four or eight years with a single-minded goal of not doing anything but what will be best for our kids and grandkids. My experience is that sometimes politicians who serve in Congress for a while tend to have some of their convictions moderated by what is politically expedient. I like the idea of not having a career politician as a president. The last time we did that was President Eisenhower, and that worked out pretty well.

Washington, D.C.: Friends peg Steve Forbes as the "flat tax" guy, but I'm drawn to Forbes' social security proposals. Could you please differentiate between Forbes' plan and George Bush's plan? Where, or how, does Bush's plan fall short? Thanks.

Rep. Nick Smith: Steve Forbes is the only candidate that has a Social Security proposal that keeps Social Security solvent. The other candidates are suggesting that we save up to two-thirds of the budget surplus to save Social Security. The fact is that that will not save Social Security. Over the next 75 years, the amount of money coming in from Social Security taxes is going to be $120 trillion short of satisfying promised Social Security benefits. It's going to take a lot more than the talk that's coming from the White House and other from the other canddiates.
Steve Forbes has a detailed plan that includes workers being able to own and invest part of their Social Security tax, which ultimately goes up to 8 percentage points out of the 12.4 percent that we now pay in Social Security tax.

Free Media: Your candidate has been openly critical of George W. Bush's unwillingness to address the abortion issue and has charged that Bush is not a true conservative. But in 1996, Forbes ran predominantly as a fiscal conservative and rarely addressed abortion. Why has that issue become so important to Forbes during this campaign, and do you think the American public will decide an election based on the abortion question?

Rep. Nick Smith: I don't think Americans will decide based on the abortion question. Steve Forbes has talked more about the life issue this election, but his position hasn't changed at all since I've known him. I think part of the reason he's talking about is that he's being absolutely upfront about the issues, not just being a nice guy who equivocates on the issues. So whether it's his tax plan, his Social Security plan or Medicare or his position on life, I think he's made a special effort to not equivocate. Anyone who talks to this man on these issues knows where he's coming from.

Free Media: You've been a strong advocate of saving Social Security. How would Steve Forbes's flat tax plan affect efforts to shore up Social Security and Medicare?

Rep. Nick Smith: Steve Forbes's flat tax is a tax equity issue. There's so much favoritism that's been put into our tax code by special interest lobbyists that it's not only very biased in terms of who gets tax breaks, but it's also exceptionally complicated. In Steve Forbes's plans, individuals can choose whether to file under his flat tax or under the tax code system we have now. His flat tax proposal isn't what's going to save Social Security, but it's going to be about taxing everyone in a fair way that I think will strengthen the economy and stregthen Social Security.

Free Media: That was our last question for Rep. Nick Smith, who is in Iowa campaigning with Steve Forbes. Thanks to Rep. Smith, and to those who joined us.