jterrell
01-31-2008, 10:52 PM
Suggestion is Hillary would tab Obama as running mate.
This is the transcript from Thursday night's Democratic presidential debate
Sens. Hillary Clinton and Barack Obama were more polite Thursday after their bitter South Carolina debate.
LOS ANGELES, California (CNN) -- WOLF BLITZER, CNN: Let's begin with Senator Obama.
SEN. BARACK OBAMA, D-ILLINOIS: Wolf, thank you.
(APPLAUSE)
Thank you. Thank you.
First of all, first of all, I want to acknowledge a candidate who left the race this week, John Edwards, who did such an outstanding job...
(APPLAUSE)
... elevating the issues of poverty and the plight of working families all across the country. And we wish him and Elizabeth well. He's going to be a voice for this party and for this country for many years to come.
I also want to note something that you noted at the beginning, which is that, when we started off, we had eight candidates on this stage. We now are down to two after 17 debates.
And, you know, it is a testimony to the Democratic Party and it is a testimony to this country that we have the opportunity to make history, because I think one of us two will end up being the next president of the United States of America.
(APPLAUSE)
And I also want to note that I was friends with Hillary Clinton before we started this campaign; I will be friends with Hillary Clinton after this campaign is over.
(APPLAUSE)
She has done -- she's run a -- we're running a competitive race, but it's because we both love this country, and we believe deeply in the issues that are at stake.
I believe we're at a defining moment in our history. Our nation is at war; our planet is in peril. Families all across the country are struggling with everything from back-breaking health care costs to trying to stay in their homes.
And at this moment, the question is: How do we take the country in a new direction? How do we get past the divisions that have prevented us from solving these problems year after year after year?
I don't think the choice is between black and white or it's about gender or religion. I don't think it's about young or old. I think what is at stake right now is whether we are looking backwards or we are looking forwards. I think it is the past versus the future.
BLITZER: Thank you, Senator.
OBAMA: And just to finish up, Wolf. And I think that, as we move forward in this debate, understand we are both Democrats and we understand the issues at stake. We want change from George Bush.
But we also have to have change that brings the country together, pushes back against the special interests in Washington, and levels with the American people about the difficult changes that we make. If we do that, I am confident that we can solve any problem and we can fulfill the destiny that America wants to see, not just next year, but in many years to come.
(APPLAUSE)
BLITZER: Senator Clinton?
SEN. HILLARY CLINTON, D-NEW YORK: Well, on January 20, 2009, the next president of the United States will be sworn in on the steps of the Capitol. I, as a Democrat, fervently hope you are looking at that next president. Either Barack or I will raise our hand and swear to uphold the Constitution of the United States.
CLINTON: And then, when the celebrations are over, the next president will walk into the Oval Office, and waiting there will be a stack of problems, problems inherited from a failed administration: a war to end in Iraq and a war to resolve in Afghanistan; an economy that is not working for the vast majority of Americans, but well for the wealthy and the well-connected; tens of millions of people either without health insurance at all or with insurance that doesn't amount to much, because it won't pay what your doctor or your hospital need...
(APPLAUSE)
... an energy crisis that we fail to act on at our peril; global warming, which the United States must lead in trying to contend with and reverse; and then all of the problems that we know about and the ones we can't yet predict.
It is imperative that we have a president, starting on day one, who can begin to solve our problems, tackle these challenges, and seize the opportunities that I think await.
I'm very grateful for the extraordinary service of John and Elizabeth Edwards.
CLINTON: And among the many contributions that they have made, both by their personal example of courage and leadership, is their reminder that in this land of such plenty and blessings, there are still 37 million Americans who are living below the poverty line and many others barely hanging on above.
So what we have to do tonight is to have a discussion about what each of us believes are the priorities and the goals for America. I think it's imperative we have a problem-solver, that we roll up our sleeves.
I'm offering that kind of approach, because I think that Americans are ready once again to know that there isn't anything we can't do if we put our minds to it.
So let's have that conversation.
(APPLAUSE)
BLITZER: Thank you. Thank you, Senator.
The first question will go to Doyle.
DOYLE MCMANUS, L.A. TIMES: Senator Clinton, your two campaigns have been going on for more than a year now and it's clear that the two of you have had different experiences in your lives. You have different styles.
But when most voters look at the two of you, they don't see a lot of daylight between you on policy.
So what I'd like to ask is: what do you consider the most important policy distinction between the two of you?
CLINTON: Well, I want to start by saying that whatever differences there are among us, between us now, it's hard to forget between -- we keep talking about all those who aren't here.
But the differences between Barack and I pale in comparison to the differences that we have with Republicans, and I want to say that first and foremost, because it's really...
(APPLAUSE)
... a stark difference. But we do have differences and let me mention a couple. First, on health care. I believe absolutely passionately that we must have universal health care. It is a moral responsibility and a right for our country, and...
(APPLAUSE)
... and I have put forth a plan similar to what Senator Edwards had before he left the race that would move us to universal health care.
Secondly, I think it's imperative that we approach this mortgage crisis with the seriousness that it is presenting. There are 95,000 homes in foreclosure in California right now. I want a moratorium on foreclosures for 90 days so we can try to work out keeping people in their homes instead of having them lose their homes, and I want to freeze interest rates for five years.
I think when it comes to how we approach foreign affairs, in particular, I believe that we've got to be realistic and optimistic, but we start with realism in the sense that we do have serious threats, we do have those who are, unfortunately and tragically, plotting against us, posing dangers to us and our friends and our allies.
And I think that we've got to have a full diplomatic effort, but I don't think the president should put the prestige of the presidency on the line in the first year to have meetings with out preconditions with five of the worst dictators in the world.
So we have differences both at home and around the world, but, again, I would emphasize that what really is important here, because the Republicans were in California debating yesterday, they are more of the same.
Neither of us, just by looking at us, you can tell, we are not more of the same. We will change our country.
(APPLAUSE)
BLITZER: We heard Senator Clinton, Senator Obama, define some of the differences on policy issues she sees between the two of you.
What do you see as the most significant policy differences between the two of you?
OBAMA: Well, I actually think that a couple of the ones that Hillary mentioned are genuine policy differences that are worthy of debate.
Let's take health care. About 95 percent of our plans are similar. We both set up a government plan that would allow people who otherwise don't have health insurance because of a preexisting condition, like my mother had, or at least what the insurance said was a preexisting condition, let them get health insurance.
We both want to emphasize prevention, because we've got to do something about ever escalating costs and we don't want children, who I meet all the time, going to emergency rooms for treatable illnesses like asthma.
It is true we've got a policy difference, because my view is that the reason people don't have health care, and I meet them all the time, in South Carolina, a mother whose child has cerebral palsy and could not get insurance for and started crying during a town hall meeting, and Hillary, I'm sure, has had the same experiences.
What they're struggling with is they can't afford the health care. And so I emphasize reducing costs. My belief is that if we make it affordable, if we provide subsidies to those who can't afford it, they will buy it.
Senator Clinton has a different approach. She believes that we have to force people who don't have health insurance to buy it. Otherwise, there will be a lot of people who don't get it.
OBAMA: I don't see those folks. And I think that it is important for us to recognize that if, in fact, you are going to mandate the purchase of insurance and it's not affordable, then there's going to have to be some enforcement mechanism that the government uses. And they may charge people who already don't have health care fines, or have to take it out of their paychecks. And that, I don't think, is helping those without health insurance. That is a genuine difference.
On the mortgage crisis...
(APPLAUSE)
On the mortgage crisis, again, we both believe that this is a critical problem. It's a huge problem in California and all across the country. And we agree that we have to keep people in their homes.
I have put forward a $10 billion home foreclosure prevention fund that would help to bridge the lender and the borrower so that people can stay in their homes.
I have not signed on to the notion of an interest rates freeze, and the reason is not because we need to protect the banks. The problem is, is that if we have such a freeze, mortgage interest rates will go up across the board and you will have a lot of people who are currently trying to get mortgages who will actually have more of a difficult time.
So, some of the people that we want to protect could end up being hurt by such a plan.
Now, keep in mind, the one thing I suspect that Senator Clinton and I agree on. Part of the reason we are in this mortgage mess is because there's been complete lack of oversight on the part of the Bush administration.
(APPLAUSE)
The mortgage lending industry spent $185 billion -- $185 million lobbying to prevent provisions that go against predatory lending, for example, that I introduced.
Which brings me to another difference. I believe that it is very important for us to reduce the influence of lobbyists and special interests in Washington.
(APPLAUSE)
I think that a lot of issues that both Senator Clinton and I care about will not move forward unless we have increased the kinds of ethics proposal that I passed just last year -- some of the toughest since Watergate -- and that's something that John Edwards and I both talked about repeatedly in this campaign. That's why I don't take federal PAC and federal lobbyist money. That is a difference.
And the last point I'll make is on Iraq. Senator Clinton brought this up.
I was opposed to Iraq from the start.
(APPLAUSE)
And that -- and I say that not just to look backwards, but also to look forwards, because I think what the next president has to show is the kind of judgment that will ensure that we are using our military power wisely.
It is true that I want to elevate diplomacy so that it is part of our arsenal to serve the American people's interests and to keep us safe.
And I have disagreed with Senator Clinton on, for example, meeting with Iran. I think, and the national intelligence estimate, the last report suggested that if we are meeting with them, talking to them, and offering them both carrots and sticks, they are more likely to change their behavior. And we can do so in a way that does not ultimately cost billions of dollars, thousands of lives, and hurt our reputation around the world.
BLITZER: Those are three important issues...
(APPLAUSE)
... that you both have defined where there are some differences -- health care, the housing crisis, national security, Iraq, Iran. We're going to go through all of those issues over the course of this debate.
But let's start with health care, because this is a critical issue affecting millions and millions of Americans. And, Jeanne, you have a question on that.
JEANNE CUMMINGS, POLITICO: You both mentioned that health care is a priority for your party, but the truth is that most Democrats really do want full coverage, everybody covered.
Now, Senator Obama, this is a question for you. Under your plan, which is voluntary, it creates incentives for people to buy, but still is voluntary. There would be around -- about 15 million people who would still not be covered.
Now, why is your plan superior to hers?
OBAMA: Well, understand who we're talking about here. Every expert who looks at it says anybody who wants health care will be able to get health care under my plan. There won't be anybody out there who wants health care who will not be able to get it. That's point number one.
So the estimate is -- this is where the 15 million figure comes in -- is that there are 15 million people who don't want health care. That's the argument.
Now, first of all, I dispute that there are 15 million people out there who don't want it. I believe that there are people who can't afford it, and if we provide them enough subsidies, they will purchase it. Number one.
Number two, I mandate coverage for all children.
Number three, I say that young people, who are the most likely to be healthy but think they are invulnerable -- and decide I don't need health care -- what I'm saying is that insurance companies and my plan as well will allow people up to 25 years old to be covered under their parents' plan.
So, as a consequence, I don't believe that there will be 15 million out there.
OBAMA: Now, under any mandate, you are going to have problems with people who don't end up having health coverage. Massachusetts right now embarked on an experiment where they mandated coverage.
And, by the way, I want to congratulate Governor Schwarzenegger and the speaker and others who have been trying to do this in California, but I know that those who have looked at it understand, you can mandate it, but there's still going to be people who can't afford it. And if they cannot afford it, then the question is, what are you going to do about it?
Are you going to fine them? Are you going to garnish their wages?
You know, those are questions that Senator Clinton has not answered with respect to her plan, but I think we can anticipate that there would also be people potentially who are not covered and are actually hurt if they have a mandate imposed on them.
BLITZER: All right.
Senator Clinton, this is a substantive difference on health care between the two of you. Go ahead and respond.
CLINTON: Well, let me start by saying that this is the passionate cause of my public service.
I started trying to expand health care many years ago, first to children, then to rural areas in Arkansas, and obviously tackled it during my husband's administration. And the reason why I have designed a plan that, number one, tells people, if you have health insurance and you are happy with it, nothing changes, is because we want to maximize choice for people.
So, if you are satisfied, you're not one of the people who will necessarily, at this time, take advantage of what I'm offering. But if you are uninsured or underinsured, we will open the congressional health plan to you.
And contrary to...
(APPLAUSE)
Contrary to the description that Barack just gave, we actually will make it affordable for everyone, because my plan lowers costs aggressively, which is important for us all; improves quality for everyone, which is essential. And the way it covers all of those who wish to participate in the congressional plan is that it will provide subsidies, and it will also cap premiums, something that is really important, because we want to make sure that it is affordable for all.
So, when you draw the distinction that, "Well, it's not affordable, therefore people will have to be made to get it," well, the fact is, it has been designed to be affordable with health care tax credits.
And it's also important to recognize that right now, there are people who could afford health care, and they are not all young, they're people who just don't feel they have to accept that responsibility. There are many states which give families the option of keeping children up until 25 on their policies, but their rates of uninsurance are still very high.
We cannot get to universal health care, which I believe is both a core Democratic value and imperative for our country, if we don't do one of three things. Either you can have a single payer system, or -- which, I know, a lot of people favor, but for many reasons, is difficult to achieve. Or, you can mandate employers. Well, that's also very controversial. Or, you can do what I am proposing, which is to have shared responsibility.
Now, in Barack's plan, he very clearly says he will mandate that parents get health insurance for their children. So it's not that he is against mandatory provisions, it's that he doesn't think it would be politically acceptable to require that for everyone.
I just disagree with that. I think we as Democrats have to be willing to fight for universal health care.
(APPLAUSE)
And what I've concluded, when I was looking at this -- because I got the same kind of advice, which was, it's controversial, you'll run into all of this buzz saw, and I said, been there, done that. But if you don't start by saying, you're going to achieve universal health care, you will be nibbled to death.
And I think it's imperative that, as we move forward in this debate and into the campaign, that we recognize what both John Edwards and I did, that you have to bite this bullet. You have to say, yes, we are going to try to get universal health care. What I have designed makes it affordable, provides premium caps so it's never
(APPLAUSE)
BLITZER: Senator Obama, let me just fine-tune the question, because I know you want to respond.
On this issue of mandates, those who don't, whether it's 10 million or 15 million, those who could afford it but don't wind up buying health insurance for one reason or another, they wind up getting sick, they go to an emergency room, all of us wind up paying for their health care. That's the biggest criticism that's been leveled at your plan.
OBAMA: If people are gaming the system, there are ways we can address that. By, for example, making them pay some of the back premiums for not having gotten it in the first place.
But understand that, number one, Hillary says that she's got enough subsidies. Well, we priced out both our plan and Senator Clinton's plan, and some of the subsidies are not going to be sufficient. Point number one.
OBAMA: Point number two is that I am actually not interested in just capping premiums. I want to lower premiums by about an average of $2,500 per family per year, because people right now cannot afford it.
I can't tell you how many folks I meet who have premiums that are so high that essentially they don't have health insurance, they have house insurance. What they do is...
(APPLAUSE)
... they have a $10,000 deductible, or what have you, to try to reduce costs. They never go to a doctor. And that ends up something that we pay for, so I'm trying to reduce premiums for all families.
But the last point I want to make has to do with how we're going to actually get this plan done. You know, Ted Kennedy said that he is confident that we will get universal health care with me as president, and he's been working on it longer than I think about than anybody.
But he's gone through 12 of these plans, and each time they have failed. And part of the reason, I think, that they have failed is we have not been able to bring Democrats, Republicans together to get it done.
(APPLAUSE)
That's what I did in Illinois, to provide insurance for people who did not have it. That's what I will do in bringing all parties together, not negotiating behind closed doors, but bringing all parties together, and broadcasting those negotiations on C-SPAN so that the American people can see what the choices are.
(APPLAUSE)
Because part of what we have to do is enlist the American people in this process. And overcoming the special interests and the lobbyists who -- Senator Clinton is right. They will resist anything that we try to do. My plan, her plan, they will try to resist.
And the antidote to that is making sure that the American people understand what is at stake. I am absolutely committed to making sure that anybody in America who needs health care is going to get it.
BLITZER: I just want to be precise, and I'll let Senator Clinton respond. But you say broadcast on C-SPAN these deliberations. Is that a swipe at Senator Clinton because...
OBAMA: No, it's not a swipe. This is something that I've been talking about consistently. What I want to do is increase transparency and accountability to offset the power of the special interests and the lobbyists.
(APPLAUSE)
If a drug company -- if the drug companies or a member of Congress who's carrying water for the drug companies wants to argue that we should not negotiate for the cheapest available price on drugs, then I want them to make that argument in front of the American people.
And I will have experts who explain that, in fact, it is legitimate for drug companies to make profits, but they are making outsized profits on the backs of senior citizens who need those prescription drugs. And that is an argument that the American people have to be involved with, otherwise we're not going to get any plan through.
(APPLAUSE)
BLITZER: Senator Clinton, we remember in '93, when you were formulating your health care plan, it was done in secret.
CLINTON: Well, it was an effort to try to begin this conversation, which we're now continuing. It has been a difficult conversation. There have been a lot of efforts.
And I'm proud that one of the efforts I was involved in 10 years ago resulted in the Children's Health Insurance Program. We now have a million children in California...
(APPLAUSE)
... who every month get health insurance because of that bipartisan effort. We obviously are running into the presidential veto and not being able to expand it.
But this issue is so important, and I just want to underscore three really critical points.
First of all, I have said in my plan that we have to regulate the health insurance industry differently. We have to say to them that they can no longer deny coverage to anyone and they have to cover everyone, including every pre-existing condition.
(APPLAUSE)
And they have to compete on cost and quality, instead of the way they compete now, which is to try to cherry-pick people, and only insure the healthy, and make it so costly for people with diabetes or cancer or some other chronic condition.
Secondly, we've got to make it clear to the drug companies that they do deserve to be part of the solution, because we all benefit from the life-saving remedies they come up with, but we pay for it many times over.
It is American taxpayers who pay for the research. It is American taxpayers who pay for a lot of the clinical studies. That's why, while we're looking at getting to universal health care, we also have to give Medicare the right to negotiate with drug companies to get the price down, to begin to rein in those costs across the board.
(APPLAUSE)
And, finally, it is so important that, as Democrats, we carry the banner of universal health care. The health insurance industry is very clever and extremely well-funded.
I know this. I had $300 million of incoming advertising and attacks during our efforts back in '93 and '94. And one of the reasons why I've designed the plan that I have put forward now is because I learned a lot about what people want, what people are willing to accept, and how we get the political process to work.
CLINTON: And, certainly, it is important that the president come up with the plan, but we'll have to persuade Congress to put all of those deliberations on C-SPAN. Now, I think we might be able to do that, but that's a little heavier lift than what the president is going to propose, because what happens is we have to have a coalition.
And I think the plan that I have proposed is if you take business, which pays the costs and wants to get those costs down, take labor that has to negotiate over health care instead of wages, take doctors, nurses, hospitals who want to get back into the business of taking care of people instead of working for insurance companies, I think we will have a coalition that can withstand the health insurance...
BLITZER: Thank you.
CLINTON: ... and the drug companies.
BLITZER: Thank you, Senator.
CLINTON: And that's what I intend to do.
(APPLAUSE)
BLITZER: All right. The next question, a related question, from Doyle.
MCMANUS: Senator Obama, one other thing both of your health insurance proposals have in common is they would cost billions of dollars in new spending and both of you have proposed raising taxes on a lot on Americans to pay for that and for other proposals.
Well, now, you know what's going to happen this fall in the general election campaign. The Republicans are going to call you "tax-and-spend" liberal Democrats, and that's a charge that's been effective in the past.
How are you going to counter that charge?
OBAMA: Well, first of all, I don't think the Republicans are going to be in a real strong position to argue fiscal responsibility, when they have added $4 trillion or $5 trillion...
(APPLAUSE)
... worth of national debt. I am happy to have that argument.
If John McCain, for example, is the nominee, I respect that John McCain, in the first two rounds of Bush tax cuts, said it is irresponsible that we have never before cut taxes at the same time as we're going into war.
And somewhere along the line, the straight talk express lost some wheels and now he is in favor of extending Bush tax cuts that went to some of the wealthiest Americans who don't need them and we're not even asking for them.
So I've already said a sizeable portion of my health care plan will be paid for because we emphasize savings. We invest in prevention.
So that as I said before, the chronically ill that account for 20 percent -- or the 20 percent of chronically ill patients that account for 80 percent of the costs, that they're getting better treatment. We are actually paying for a dietitian for people to lose weight as opposed to paying for the $30,000 foot amputation. That will save us money.
We can conservatively save...
(APPLAUSE)
... $100 billion to $150 billion a year under my plan. That pays for part of it.
Part of it is paid for by rolling back the Bush tax cuts on the top one percent.
Now...
(APPLAUSE)
So my plan is paid for. But one thing that I think we're going to have to do as Democrats when we go after the Republicans is -- the question is not tax cuts, tax hikes. The question is who are the tax cuts for, who are the tax hikes imposed upon.
What we have had right now is a situation where we've cut taxes for people who don't need them. Warren Buffett has said, "You know, I made $46 million last year. It was a bad year for me. But I can still afford to pay more than my secretary, who has a higher tax rate than I do."
That is not fair and I want to change that.
We've got $1 trillion worth of corporate tax loopholes and tax havens and I've said I will close those and I will give tax cuts to people making $75,000 or less by offsetting their payroll tax. Senior citizens making less than $50,000 a year, we want to eliminate taxes for them.
So the question is can we restore a sense of balance to our economy and make sure that those of us who are blessed and fortunate and have thrived in this economy, in this global economy, that we can afford to pay a little bit more so that that child in east Los Angeles who is in a crumbling school, with teachers that are having to dig into their own pockets for school supplies, that they are having a chance at the American dream, as well.
(APPLAUSE)
I'm happy to have that argument.
BLITZER: Senator Clinton, your health care plan, it is estimated, will cost $110 billion annually. You want to tax the rich to pay for that, is that what you're saying?
CLINTON: Well, let me say that the way I would pay for this is to take the Bush tax cuts that are set to expire on people making more than $250,000 a year. That would raise about $55 billion and I would put that into the subsidies for the health care tax credit, so that people would be able to afford the health care that we are offering.
The other $55 billion would come from the modernization and the efficiencies that I believe we can obtain. We spend more money than anybody in the world on health care and there is no end in sight.
CLINTON: Yet, we don't get the best results. We don't have the longest life span. We don't have the best infant mortality rates.
We could do so much better. And here are some of the ideas that I have put on the table.
Number one, the Bush administration has given enormous tax giveaways to HMOs and drug companies under the Medicare prescription Part D program, under the HMO program in Medicare. I would rein those in. They are not being earned. They do not produce the results that are supposedly being touted by the Bush administration.
I would also move for electronic medical records, something that I have worked on for nearly five years on a bipartisan basis. Started with Newt Gingrich and Bill Frist. We passed my legislation through the Senate a year ago. Didn't get it through the Republican House. Now we're going to try again in the Democratic Congress.
If we had electronic medical records, according to RAND Corporation -- hardly a bastion of liberal thinking...
(LAUGHTER)
... they have said we would save $77 billion a year. That money can be put into prevention. It could be put into chronic care management. It can be put into making sure that our health care system has enough access so that if you are in a rural community somewhere in California or somewhere in Tennessee or somewhere in Georgia, you'll have access to health care. If you are in an inner- city area and you see your hospital, like the Drew Medical Center, closed on you, then you are going to have a place once again where you can get health care in the immediate area.
So we can begin to be more effective and more sensible about how we cover everybody, and use the money from the top-end tax cults and from modernizing the system.
BLITZER: Jeanne has a question on a different subject...
(APPLAUSE)
... but I just want to be precise. When you let -- if you become president, either one of you -- let the Bush tax cuts lapse, there will be effectively tax increases on millions of Americans.
OBAMA: On wealthy Americans.
CLINTON: That's right.
OBAMA: And look...
BLITZER: And you are willing to go into...
(CROSSTALK)
OBAMA: I'm not bashful about it.
CLINTON: Absolutely. Absolutely.
OBAMA: I suspect a lot of this crowd -- it looks like a pretty well-dressed crowd -- potentially will pay a little bit more. I will pay a little bit more.
But as I said, you know, we have, I believe, a moral obligation to make sure that everybody has the opportunity to get health care in this country.
And one last point I want to make. We will have to make some upfront costs. That's why in either of our plans, you know, if we want to invest in electronic medical records, then we have got to go to rural hospitals who might not be able to afford it and say, we're going to help you buy the computer software and the machinery to make sure that this works.
But that investment will pay huge dividends over the long term, and the place where it will pay the biggest dividends is in Medicare and Medicaid. Because if we can get a healthier population, that is the only way over the long term that we can actually control that spending that is going to break the federal budget.
CLINTON: But Wolf, it's just really important to underscore here that we will go back to the tax rates we had before George Bush became president. And my memory is, people did really well during that time period.
(APPLAUSE)
And they will keep doing really well.
This is the transcript from Thursday night's Democratic presidential debate
Sens. Hillary Clinton and Barack Obama were more polite Thursday after their bitter South Carolina debate.
LOS ANGELES, California (CNN) -- WOLF BLITZER, CNN: Let's begin with Senator Obama.
SEN. BARACK OBAMA, D-ILLINOIS: Wolf, thank you.
(APPLAUSE)
Thank you. Thank you.
First of all, first of all, I want to acknowledge a candidate who left the race this week, John Edwards, who did such an outstanding job...
(APPLAUSE)
... elevating the issues of poverty and the plight of working families all across the country. And we wish him and Elizabeth well. He's going to be a voice for this party and for this country for many years to come.
I also want to note something that you noted at the beginning, which is that, when we started off, we had eight candidates on this stage. We now are down to two after 17 debates.
And, you know, it is a testimony to the Democratic Party and it is a testimony to this country that we have the opportunity to make history, because I think one of us two will end up being the next president of the United States of America.
(APPLAUSE)
And I also want to note that I was friends with Hillary Clinton before we started this campaign; I will be friends with Hillary Clinton after this campaign is over.
(APPLAUSE)
She has done -- she's run a -- we're running a competitive race, but it's because we both love this country, and we believe deeply in the issues that are at stake.
I believe we're at a defining moment in our history. Our nation is at war; our planet is in peril. Families all across the country are struggling with everything from back-breaking health care costs to trying to stay in their homes.
And at this moment, the question is: How do we take the country in a new direction? How do we get past the divisions that have prevented us from solving these problems year after year after year?
I don't think the choice is between black and white or it's about gender or religion. I don't think it's about young or old. I think what is at stake right now is whether we are looking backwards or we are looking forwards. I think it is the past versus the future.
BLITZER: Thank you, Senator.
OBAMA: And just to finish up, Wolf. And I think that, as we move forward in this debate, understand we are both Democrats and we understand the issues at stake. We want change from George Bush.
But we also have to have change that brings the country together, pushes back against the special interests in Washington, and levels with the American people about the difficult changes that we make. If we do that, I am confident that we can solve any problem and we can fulfill the destiny that America wants to see, not just next year, but in many years to come.
(APPLAUSE)
BLITZER: Senator Clinton?
SEN. HILLARY CLINTON, D-NEW YORK: Well, on January 20, 2009, the next president of the United States will be sworn in on the steps of the Capitol. I, as a Democrat, fervently hope you are looking at that next president. Either Barack or I will raise our hand and swear to uphold the Constitution of the United States.
CLINTON: And then, when the celebrations are over, the next president will walk into the Oval Office, and waiting there will be a stack of problems, problems inherited from a failed administration: a war to end in Iraq and a war to resolve in Afghanistan; an economy that is not working for the vast majority of Americans, but well for the wealthy and the well-connected; tens of millions of people either without health insurance at all or with insurance that doesn't amount to much, because it won't pay what your doctor or your hospital need...
(APPLAUSE)
... an energy crisis that we fail to act on at our peril; global warming, which the United States must lead in trying to contend with and reverse; and then all of the problems that we know about and the ones we can't yet predict.
It is imperative that we have a president, starting on day one, who can begin to solve our problems, tackle these challenges, and seize the opportunities that I think await.
I'm very grateful for the extraordinary service of John and Elizabeth Edwards.
CLINTON: And among the many contributions that they have made, both by their personal example of courage and leadership, is their reminder that in this land of such plenty and blessings, there are still 37 million Americans who are living below the poverty line and many others barely hanging on above.
So what we have to do tonight is to have a discussion about what each of us believes are the priorities and the goals for America. I think it's imperative we have a problem-solver, that we roll up our sleeves.
I'm offering that kind of approach, because I think that Americans are ready once again to know that there isn't anything we can't do if we put our minds to it.
So let's have that conversation.
(APPLAUSE)
BLITZER: Thank you. Thank you, Senator.
The first question will go to Doyle.
DOYLE MCMANUS, L.A. TIMES: Senator Clinton, your two campaigns have been going on for more than a year now and it's clear that the two of you have had different experiences in your lives. You have different styles.
But when most voters look at the two of you, they don't see a lot of daylight between you on policy.
So what I'd like to ask is: what do you consider the most important policy distinction between the two of you?
CLINTON: Well, I want to start by saying that whatever differences there are among us, between us now, it's hard to forget between -- we keep talking about all those who aren't here.
But the differences between Barack and I pale in comparison to the differences that we have with Republicans, and I want to say that first and foremost, because it's really...
(APPLAUSE)
... a stark difference. But we do have differences and let me mention a couple. First, on health care. I believe absolutely passionately that we must have universal health care. It is a moral responsibility and a right for our country, and...
(APPLAUSE)
... and I have put forth a plan similar to what Senator Edwards had before he left the race that would move us to universal health care.
Secondly, I think it's imperative that we approach this mortgage crisis with the seriousness that it is presenting. There are 95,000 homes in foreclosure in California right now. I want a moratorium on foreclosures for 90 days so we can try to work out keeping people in their homes instead of having them lose their homes, and I want to freeze interest rates for five years.
I think when it comes to how we approach foreign affairs, in particular, I believe that we've got to be realistic and optimistic, but we start with realism in the sense that we do have serious threats, we do have those who are, unfortunately and tragically, plotting against us, posing dangers to us and our friends and our allies.
And I think that we've got to have a full diplomatic effort, but I don't think the president should put the prestige of the presidency on the line in the first year to have meetings with out preconditions with five of the worst dictators in the world.
So we have differences both at home and around the world, but, again, I would emphasize that what really is important here, because the Republicans were in California debating yesterday, they are more of the same.
Neither of us, just by looking at us, you can tell, we are not more of the same. We will change our country.
(APPLAUSE)
BLITZER: We heard Senator Clinton, Senator Obama, define some of the differences on policy issues she sees between the two of you.
What do you see as the most significant policy differences between the two of you?
OBAMA: Well, I actually think that a couple of the ones that Hillary mentioned are genuine policy differences that are worthy of debate.
Let's take health care. About 95 percent of our plans are similar. We both set up a government plan that would allow people who otherwise don't have health insurance because of a preexisting condition, like my mother had, or at least what the insurance said was a preexisting condition, let them get health insurance.
We both want to emphasize prevention, because we've got to do something about ever escalating costs and we don't want children, who I meet all the time, going to emergency rooms for treatable illnesses like asthma.
It is true we've got a policy difference, because my view is that the reason people don't have health care, and I meet them all the time, in South Carolina, a mother whose child has cerebral palsy and could not get insurance for and started crying during a town hall meeting, and Hillary, I'm sure, has had the same experiences.
What they're struggling with is they can't afford the health care. And so I emphasize reducing costs. My belief is that if we make it affordable, if we provide subsidies to those who can't afford it, they will buy it.
Senator Clinton has a different approach. She believes that we have to force people who don't have health insurance to buy it. Otherwise, there will be a lot of people who don't get it.
OBAMA: I don't see those folks. And I think that it is important for us to recognize that if, in fact, you are going to mandate the purchase of insurance and it's not affordable, then there's going to have to be some enforcement mechanism that the government uses. And they may charge people who already don't have health care fines, or have to take it out of their paychecks. And that, I don't think, is helping those without health insurance. That is a genuine difference.
On the mortgage crisis...
(APPLAUSE)
On the mortgage crisis, again, we both believe that this is a critical problem. It's a huge problem in California and all across the country. And we agree that we have to keep people in their homes.
I have put forward a $10 billion home foreclosure prevention fund that would help to bridge the lender and the borrower so that people can stay in their homes.
I have not signed on to the notion of an interest rates freeze, and the reason is not because we need to protect the banks. The problem is, is that if we have such a freeze, mortgage interest rates will go up across the board and you will have a lot of people who are currently trying to get mortgages who will actually have more of a difficult time.
So, some of the people that we want to protect could end up being hurt by such a plan.
Now, keep in mind, the one thing I suspect that Senator Clinton and I agree on. Part of the reason we are in this mortgage mess is because there's been complete lack of oversight on the part of the Bush administration.
(APPLAUSE)
The mortgage lending industry spent $185 billion -- $185 million lobbying to prevent provisions that go against predatory lending, for example, that I introduced.
Which brings me to another difference. I believe that it is very important for us to reduce the influence of lobbyists and special interests in Washington.
(APPLAUSE)
I think that a lot of issues that both Senator Clinton and I care about will not move forward unless we have increased the kinds of ethics proposal that I passed just last year -- some of the toughest since Watergate -- and that's something that John Edwards and I both talked about repeatedly in this campaign. That's why I don't take federal PAC and federal lobbyist money. That is a difference.
And the last point I'll make is on Iraq. Senator Clinton brought this up.
I was opposed to Iraq from the start.
(APPLAUSE)
And that -- and I say that not just to look backwards, but also to look forwards, because I think what the next president has to show is the kind of judgment that will ensure that we are using our military power wisely.
It is true that I want to elevate diplomacy so that it is part of our arsenal to serve the American people's interests and to keep us safe.
And I have disagreed with Senator Clinton on, for example, meeting with Iran. I think, and the national intelligence estimate, the last report suggested that if we are meeting with them, talking to them, and offering them both carrots and sticks, they are more likely to change their behavior. And we can do so in a way that does not ultimately cost billions of dollars, thousands of lives, and hurt our reputation around the world.
BLITZER: Those are three important issues...
(APPLAUSE)
... that you both have defined where there are some differences -- health care, the housing crisis, national security, Iraq, Iran. We're going to go through all of those issues over the course of this debate.
But let's start with health care, because this is a critical issue affecting millions and millions of Americans. And, Jeanne, you have a question on that.
JEANNE CUMMINGS, POLITICO: You both mentioned that health care is a priority for your party, but the truth is that most Democrats really do want full coverage, everybody covered.
Now, Senator Obama, this is a question for you. Under your plan, which is voluntary, it creates incentives for people to buy, but still is voluntary. There would be around -- about 15 million people who would still not be covered.
Now, why is your plan superior to hers?
OBAMA: Well, understand who we're talking about here. Every expert who looks at it says anybody who wants health care will be able to get health care under my plan. There won't be anybody out there who wants health care who will not be able to get it. That's point number one.
So the estimate is -- this is where the 15 million figure comes in -- is that there are 15 million people who don't want health care. That's the argument.
Now, first of all, I dispute that there are 15 million people out there who don't want it. I believe that there are people who can't afford it, and if we provide them enough subsidies, they will purchase it. Number one.
Number two, I mandate coverage for all children.
Number three, I say that young people, who are the most likely to be healthy but think they are invulnerable -- and decide I don't need health care -- what I'm saying is that insurance companies and my plan as well will allow people up to 25 years old to be covered under their parents' plan.
So, as a consequence, I don't believe that there will be 15 million out there.
OBAMA: Now, under any mandate, you are going to have problems with people who don't end up having health coverage. Massachusetts right now embarked on an experiment where they mandated coverage.
And, by the way, I want to congratulate Governor Schwarzenegger and the speaker and others who have been trying to do this in California, but I know that those who have looked at it understand, you can mandate it, but there's still going to be people who can't afford it. And if they cannot afford it, then the question is, what are you going to do about it?
Are you going to fine them? Are you going to garnish their wages?
You know, those are questions that Senator Clinton has not answered with respect to her plan, but I think we can anticipate that there would also be people potentially who are not covered and are actually hurt if they have a mandate imposed on them.
BLITZER: All right.
Senator Clinton, this is a substantive difference on health care between the two of you. Go ahead and respond.
CLINTON: Well, let me start by saying that this is the passionate cause of my public service.
I started trying to expand health care many years ago, first to children, then to rural areas in Arkansas, and obviously tackled it during my husband's administration. And the reason why I have designed a plan that, number one, tells people, if you have health insurance and you are happy with it, nothing changes, is because we want to maximize choice for people.
So, if you are satisfied, you're not one of the people who will necessarily, at this time, take advantage of what I'm offering. But if you are uninsured or underinsured, we will open the congressional health plan to you.
And contrary to...
(APPLAUSE)
Contrary to the description that Barack just gave, we actually will make it affordable for everyone, because my plan lowers costs aggressively, which is important for us all; improves quality for everyone, which is essential. And the way it covers all of those who wish to participate in the congressional plan is that it will provide subsidies, and it will also cap premiums, something that is really important, because we want to make sure that it is affordable for all.
So, when you draw the distinction that, "Well, it's not affordable, therefore people will have to be made to get it," well, the fact is, it has been designed to be affordable with health care tax credits.
And it's also important to recognize that right now, there are people who could afford health care, and they are not all young, they're people who just don't feel they have to accept that responsibility. There are many states which give families the option of keeping children up until 25 on their policies, but their rates of uninsurance are still very high.
We cannot get to universal health care, which I believe is both a core Democratic value and imperative for our country, if we don't do one of three things. Either you can have a single payer system, or -- which, I know, a lot of people favor, but for many reasons, is difficult to achieve. Or, you can mandate employers. Well, that's also very controversial. Or, you can do what I am proposing, which is to have shared responsibility.
Now, in Barack's plan, he very clearly says he will mandate that parents get health insurance for their children. So it's not that he is against mandatory provisions, it's that he doesn't think it would be politically acceptable to require that for everyone.
I just disagree with that. I think we as Democrats have to be willing to fight for universal health care.
(APPLAUSE)
And what I've concluded, when I was looking at this -- because I got the same kind of advice, which was, it's controversial, you'll run into all of this buzz saw, and I said, been there, done that. But if you don't start by saying, you're going to achieve universal health care, you will be nibbled to death.
And I think it's imperative that, as we move forward in this debate and into the campaign, that we recognize what both John Edwards and I did, that you have to bite this bullet. You have to say, yes, we are going to try to get universal health care. What I have designed makes it affordable, provides premium caps so it's never
(APPLAUSE)
BLITZER: Senator Obama, let me just fine-tune the question, because I know you want to respond.
On this issue of mandates, those who don't, whether it's 10 million or 15 million, those who could afford it but don't wind up buying health insurance for one reason or another, they wind up getting sick, they go to an emergency room, all of us wind up paying for their health care. That's the biggest criticism that's been leveled at your plan.
OBAMA: If people are gaming the system, there are ways we can address that. By, for example, making them pay some of the back premiums for not having gotten it in the first place.
But understand that, number one, Hillary says that she's got enough subsidies. Well, we priced out both our plan and Senator Clinton's plan, and some of the subsidies are not going to be sufficient. Point number one.
OBAMA: Point number two is that I am actually not interested in just capping premiums. I want to lower premiums by about an average of $2,500 per family per year, because people right now cannot afford it.
I can't tell you how many folks I meet who have premiums that are so high that essentially they don't have health insurance, they have house insurance. What they do is...
(APPLAUSE)
... they have a $10,000 deductible, or what have you, to try to reduce costs. They never go to a doctor. And that ends up something that we pay for, so I'm trying to reduce premiums for all families.
But the last point I want to make has to do with how we're going to actually get this plan done. You know, Ted Kennedy said that he is confident that we will get universal health care with me as president, and he's been working on it longer than I think about than anybody.
But he's gone through 12 of these plans, and each time they have failed. And part of the reason, I think, that they have failed is we have not been able to bring Democrats, Republicans together to get it done.
(APPLAUSE)
That's what I did in Illinois, to provide insurance for people who did not have it. That's what I will do in bringing all parties together, not negotiating behind closed doors, but bringing all parties together, and broadcasting those negotiations on C-SPAN so that the American people can see what the choices are.
(APPLAUSE)
Because part of what we have to do is enlist the American people in this process. And overcoming the special interests and the lobbyists who -- Senator Clinton is right. They will resist anything that we try to do. My plan, her plan, they will try to resist.
And the antidote to that is making sure that the American people understand what is at stake. I am absolutely committed to making sure that anybody in America who needs health care is going to get it.
BLITZER: I just want to be precise, and I'll let Senator Clinton respond. But you say broadcast on C-SPAN these deliberations. Is that a swipe at Senator Clinton because...
OBAMA: No, it's not a swipe. This is something that I've been talking about consistently. What I want to do is increase transparency and accountability to offset the power of the special interests and the lobbyists.
(APPLAUSE)
If a drug company -- if the drug companies or a member of Congress who's carrying water for the drug companies wants to argue that we should not negotiate for the cheapest available price on drugs, then I want them to make that argument in front of the American people.
And I will have experts who explain that, in fact, it is legitimate for drug companies to make profits, but they are making outsized profits on the backs of senior citizens who need those prescription drugs. And that is an argument that the American people have to be involved with, otherwise we're not going to get any plan through.
(APPLAUSE)
BLITZER: Senator Clinton, we remember in '93, when you were formulating your health care plan, it was done in secret.
CLINTON: Well, it was an effort to try to begin this conversation, which we're now continuing. It has been a difficult conversation. There have been a lot of efforts.
And I'm proud that one of the efforts I was involved in 10 years ago resulted in the Children's Health Insurance Program. We now have a million children in California...
(APPLAUSE)
... who every month get health insurance because of that bipartisan effort. We obviously are running into the presidential veto and not being able to expand it.
But this issue is so important, and I just want to underscore three really critical points.
First of all, I have said in my plan that we have to regulate the health insurance industry differently. We have to say to them that they can no longer deny coverage to anyone and they have to cover everyone, including every pre-existing condition.
(APPLAUSE)
And they have to compete on cost and quality, instead of the way they compete now, which is to try to cherry-pick people, and only insure the healthy, and make it so costly for people with diabetes or cancer or some other chronic condition.
Secondly, we've got to make it clear to the drug companies that they do deserve to be part of the solution, because we all benefit from the life-saving remedies they come up with, but we pay for it many times over.
It is American taxpayers who pay for the research. It is American taxpayers who pay for a lot of the clinical studies. That's why, while we're looking at getting to universal health care, we also have to give Medicare the right to negotiate with drug companies to get the price down, to begin to rein in those costs across the board.
(APPLAUSE)
And, finally, it is so important that, as Democrats, we carry the banner of universal health care. The health insurance industry is very clever and extremely well-funded.
I know this. I had $300 million of incoming advertising and attacks during our efforts back in '93 and '94. And one of the reasons why I've designed the plan that I have put forward now is because I learned a lot about what people want, what people are willing to accept, and how we get the political process to work.
CLINTON: And, certainly, it is important that the president come up with the plan, but we'll have to persuade Congress to put all of those deliberations on C-SPAN. Now, I think we might be able to do that, but that's a little heavier lift than what the president is going to propose, because what happens is we have to have a coalition.
And I think the plan that I have proposed is if you take business, which pays the costs and wants to get those costs down, take labor that has to negotiate over health care instead of wages, take doctors, nurses, hospitals who want to get back into the business of taking care of people instead of working for insurance companies, I think we will have a coalition that can withstand the health insurance...
BLITZER: Thank you.
CLINTON: ... and the drug companies.
BLITZER: Thank you, Senator.
CLINTON: And that's what I intend to do.
(APPLAUSE)
BLITZER: All right. The next question, a related question, from Doyle.
MCMANUS: Senator Obama, one other thing both of your health insurance proposals have in common is they would cost billions of dollars in new spending and both of you have proposed raising taxes on a lot on Americans to pay for that and for other proposals.
Well, now, you know what's going to happen this fall in the general election campaign. The Republicans are going to call you "tax-and-spend" liberal Democrats, and that's a charge that's been effective in the past.
How are you going to counter that charge?
OBAMA: Well, first of all, I don't think the Republicans are going to be in a real strong position to argue fiscal responsibility, when they have added $4 trillion or $5 trillion...
(APPLAUSE)
... worth of national debt. I am happy to have that argument.
If John McCain, for example, is the nominee, I respect that John McCain, in the first two rounds of Bush tax cuts, said it is irresponsible that we have never before cut taxes at the same time as we're going into war.
And somewhere along the line, the straight talk express lost some wheels and now he is in favor of extending Bush tax cuts that went to some of the wealthiest Americans who don't need them and we're not even asking for them.
So I've already said a sizeable portion of my health care plan will be paid for because we emphasize savings. We invest in prevention.
So that as I said before, the chronically ill that account for 20 percent -- or the 20 percent of chronically ill patients that account for 80 percent of the costs, that they're getting better treatment. We are actually paying for a dietitian for people to lose weight as opposed to paying for the $30,000 foot amputation. That will save us money.
We can conservatively save...
(APPLAUSE)
... $100 billion to $150 billion a year under my plan. That pays for part of it.
Part of it is paid for by rolling back the Bush tax cuts on the top one percent.
Now...
(APPLAUSE)
So my plan is paid for. But one thing that I think we're going to have to do as Democrats when we go after the Republicans is -- the question is not tax cuts, tax hikes. The question is who are the tax cuts for, who are the tax hikes imposed upon.
What we have had right now is a situation where we've cut taxes for people who don't need them. Warren Buffett has said, "You know, I made $46 million last year. It was a bad year for me. But I can still afford to pay more than my secretary, who has a higher tax rate than I do."
That is not fair and I want to change that.
We've got $1 trillion worth of corporate tax loopholes and tax havens and I've said I will close those and I will give tax cuts to people making $75,000 or less by offsetting their payroll tax. Senior citizens making less than $50,000 a year, we want to eliminate taxes for them.
So the question is can we restore a sense of balance to our economy and make sure that those of us who are blessed and fortunate and have thrived in this economy, in this global economy, that we can afford to pay a little bit more so that that child in east Los Angeles who is in a crumbling school, with teachers that are having to dig into their own pockets for school supplies, that they are having a chance at the American dream, as well.
(APPLAUSE)
I'm happy to have that argument.
BLITZER: Senator Clinton, your health care plan, it is estimated, will cost $110 billion annually. You want to tax the rich to pay for that, is that what you're saying?
CLINTON: Well, let me say that the way I would pay for this is to take the Bush tax cuts that are set to expire on people making more than $250,000 a year. That would raise about $55 billion and I would put that into the subsidies for the health care tax credit, so that people would be able to afford the health care that we are offering.
The other $55 billion would come from the modernization and the efficiencies that I believe we can obtain. We spend more money than anybody in the world on health care and there is no end in sight.
CLINTON: Yet, we don't get the best results. We don't have the longest life span. We don't have the best infant mortality rates.
We could do so much better. And here are some of the ideas that I have put on the table.
Number one, the Bush administration has given enormous tax giveaways to HMOs and drug companies under the Medicare prescription Part D program, under the HMO program in Medicare. I would rein those in. They are not being earned. They do not produce the results that are supposedly being touted by the Bush administration.
I would also move for electronic medical records, something that I have worked on for nearly five years on a bipartisan basis. Started with Newt Gingrich and Bill Frist. We passed my legislation through the Senate a year ago. Didn't get it through the Republican House. Now we're going to try again in the Democratic Congress.
If we had electronic medical records, according to RAND Corporation -- hardly a bastion of liberal thinking...
(LAUGHTER)
... they have said we would save $77 billion a year. That money can be put into prevention. It could be put into chronic care management. It can be put into making sure that our health care system has enough access so that if you are in a rural community somewhere in California or somewhere in Tennessee or somewhere in Georgia, you'll have access to health care. If you are in an inner- city area and you see your hospital, like the Drew Medical Center, closed on you, then you are going to have a place once again where you can get health care in the immediate area.
So we can begin to be more effective and more sensible about how we cover everybody, and use the money from the top-end tax cults and from modernizing the system.
BLITZER: Jeanne has a question on a different subject...
(APPLAUSE)
... but I just want to be precise. When you let -- if you become president, either one of you -- let the Bush tax cuts lapse, there will be effectively tax increases on millions of Americans.
OBAMA: On wealthy Americans.
CLINTON: That's right.
OBAMA: And look...
BLITZER: And you are willing to go into...
(CROSSTALK)
OBAMA: I'm not bashful about it.
CLINTON: Absolutely. Absolutely.
OBAMA: I suspect a lot of this crowd -- it looks like a pretty well-dressed crowd -- potentially will pay a little bit more. I will pay a little bit more.
But as I said, you know, we have, I believe, a moral obligation to make sure that everybody has the opportunity to get health care in this country.
And one last point I want to make. We will have to make some upfront costs. That's why in either of our plans, you know, if we want to invest in electronic medical records, then we have got to go to rural hospitals who might not be able to afford it and say, we're going to help you buy the computer software and the machinery to make sure that this works.
But that investment will pay huge dividends over the long term, and the place where it will pay the biggest dividends is in Medicare and Medicaid. Because if we can get a healthier population, that is the only way over the long term that we can actually control that spending that is going to break the federal budget.
CLINTON: But Wolf, it's just really important to underscore here that we will go back to the tax rates we had before George Bush became president. And my memory is, people did really well during that time period.
(APPLAUSE)
And they will keep doing really well.