Democrats Talk Taxes and Trade in Iowa Debate

SEN. BARACK OBAMA (D), Illinois: Every proposal I've put forward during this campaign we have paid for, and we have specified where that money is going to come from.

But let's just look at our tax code, because it's a great example of how we could provide some relief to ordinary citizens who are struggling to get by. Right now, we've got a whole host of corporate loopholes and tax savings.

There's a building in the Cayman Islands that houses, supposedly, 12,000 U.S.-based corporations. Now, that's either the biggest building in the world or the biggest tax scam in the world. And I think we know which one it is.

If we close some of those loopholes, that helps me to pay for an offset on the payroll tax that affects all Americans.

KWAME HOLMAN: Governor Bill Richardson said some spending is required now.

GOV. BILL RICHARDSON (D), New Mexico: Well, I detailed $57 billion in military reductions, which involve missile systems, procurement reform. But we've got to recognize that the Iraq war has drained our military. And what we need to do is we need a couple of more divisions in the Army, in the Marines.

We've got to take care of our veterans. The VA system needs guaranteed funding. Our veterans coming back with mental health problems, with trauma are not properly being taken care of. And we need to recruit and retain to keep the volunteer Army going. We need to improve our readiness.

SEN. CHRIS DODD (D), Connecticut: I don't mind competing with someone, but as long as we're all operating by the same rules. We don't have the same access to their shelves, to our services that we'd like to sell in their country. They're very, very restrictive here.

We need to get a lot tougher on this -- fair, not loud, but fair -- if we're going to have a better relationship, or before long this will no longer be the most desirous market for them and we will have disadvantaged our country substantially.

This is a major, major issue that needs to be addressed with a lot more thoughtfulness than it's getting today.

KWAME HOLMAN: For her part, Hillary Clinton said she was in favor of revamping the North American Free Trade Agreement championed by her husband.

SEN. HILLARY CLINTON: I want to be a president who focuses on smart, pro-American trade. I will review every trade agreement. I'm going to ask for revisions that I think will actually benefit our country, particularly our workers, our exporters.

And I'm going to go to the international community and get the kind of enforceable agreements and standards on labor and environment that we have been seeking as Democrats, because we need to make it clear to the rest of the world that we are an open society, we believe in trade, but we don't want to be the trade patsies of the world. We want to have an equivocal, balanced relationship.

CAROLYN WASHBURN: With relatively little foreign policy experience of your own, how will you rely on so many Clinton advisers and still deliver the kind of break from the past that you're promising voters?

SEN. BARACK OBAMA: Well, the -- you know, I am...

SEN. HILLARY CLINTON: I want to hear that.

SEN. BARACK OBAMA: Well, Hillary, I'm looking forward to you advising me, as well.

I want to gather up talent from everywhere.

KWAME HOLMAN: Each of the candidates was given 30 seconds of free time. And, like Senator Biden, they all made one last appeal to the statewide television audience.

SEN. JOE BIDEN: Well, you know, folks talk about this election being about experience or change. It's really about action and pragmatic solutions. And that's what I've done my whole career, with the Violence Against Women Act, the crime bill, the Balkans, helping stop the genocide there.

And, ladies and gentlemen, you know, leadership is also about knowing who you are, what you believe, and what your priorities are, and what you'll do. In my case, I'll start by ending that war in Iraq and also trust the American people. They're ready; they're ready to get up.

KWAME HOLMAN: This final debate signaled that Iowans who plan to participate in the caucuses now have three weeks for holiday shopping before coming together to vote on January 3rd.