Business

Editor: Sharon Li
3 Sep 2008 03:12:22 GMT

DENVER –Ushering in a new era for American politics, Barack Obama accepted the Democratic presidential nomination with a pledge to dramatically remake U.S. tax and energy policy after eight years of Republican control.

“Let me spell out exactly what that change would mean if I am President,” Obama, the first African-American presidential candidate of a major U.S. party, told nearly 80,000 pulsing supporters at Denver’s Invesco Field. “Change means a tax code that doesn’t reward the lobbyists who wrote it, but the American workers and small businesses who deserve it.”

In a speech that ran nearly three-quarters of an hour and was frequently interrupted by cheering supporters, Obama sought to define the election as a stark choice for voters worried about the economy. The choice, he said, is between a Republican candidate who will mimic the unpopular policies of President George W. Bush and a Democratic agenda devoted to bread-and-butter issues and energy security.

“Tonight, more Americans are out of work and more are working harder for less. More of you have lost your homes and even more are watching your home values plummet. More of you have cars you can’t afford to drive, credit card bills you can’t afford to pay, and tuition that’s beyond your reach,” Obama said. “These challenges are not all of government’s making. But the failure to respond is a direct result of a broken politics in Washington and the failed policies of George W. Bush.”

They are policies McCain voted with more than 90% of the time, Obama alleged. “I don’t know about you but I am not ready to take a 10% chance on change.”

The Illinois senator’s broad economic package includes a $50 billion stimulus plan to provide relief from the current economic slump and mortgage crisis. Obama also promises to lower taxes for people making less that $250,000 a year, provide affordable health care for all Americans and overhaul bankruptcy laws.

With the presidential contest now deadlocked, Democrats are hoping their attention to kitchen table issues helps them gain ground in critical battleground states. An hour before Obama was scheduled to hit the stage, Vice Presidential nominee Joe Biden introduced representatives of some of those battleground states to address the stadium.

“We need a president who puts Barney Smith before Smith Barney,” said Barney Smith of Marion, Indiana, who called himself a lifelong Republican.

Obama said he would do just that. Reflecting what voters say is their biggest election-year worry, his speech focused heavily on the economy, accusing McCain of backing reckless fiscal and trade policies.

“Unlike John McCain, I will stop giving tax breaks to corporations that ship jobs overseas, and I will start giving them to companies that create good jobs right here in America,” Obama said.

Obama vowed to eliminate capital gains taxes for small businesses and start-ups, and cut taxes for 95% of working families.

“Because in an economy like this, the last thing we should do is raise taxes on the middle-class,” Obama said.

The McCain camp says Obama’s plans would actually trigger a massive tax increase and stifle economic growth. Obama countered critics by saying his plans could be paid for by closing corporate loopholes and tax havens, and combing the federal budget to weed out unnecessary spending.

Even before Obama brought his speech to an end, McCain’s campaign issued a statement calling it misleading.

“When the temple comes down, the fireworks end, and the words are over, the facts remain: Senator Obama still has no record of bipartisanship, still opposes offshore drilling, still voted to raise taxes on those making just $42,000 per year, and still voted against funds for American troops in harm’s way. The fact remains: Barack Obama is still not ready to be President,” McCain spokesman Tucker Bounds said in a statement.

On energy, Obama pledged to end the U.S.’s dependence on oil from the Middle East in 10 years, and called the Bush administration’s push for increased drilling a “stop-gap measure.”

“As President, I will tap our natural gas reserves, invest in clean coal technology, and find ways to safely harness nuclear power,” Obama said.

“I’ll help our auto companies re-tool, so that the fuel-efficient cars of the future are built right here in America. I’ll make it easier for the American people to afford these new cars,” he said, adding that he would invest $150 billion over the next decade in wind and solar power and biofuels.

He accused McCain of doing nothing to bring about energy security during his 26 years in the Senate, saying the Republican has voted against higher-fuel efficiency standards for cars and increased investment in renewable energy.

Obama spoke for nearly 25 minutes before addressing the war in Iraq, an issue that has been eclipsed by the economy as voters’ top concern. He hammered McCain’s endorsement of the war, and said Democrats are forcefully devoted to national security.

“John McCain likes to say that he’ll follow bin Laden to the Gates of Hell – but he won’t even go to the cave where he lives,” Obama said.

With polls suggesting many Americans aren’t yet comfortable with Obama, the candidate confronted head-on the questions about his unconventional life story. He described a childhood shaped by his mother and grandmother. He ridiculed McCain’s attempt to tar him as a celebrity, saying McCain himself is out of touch with the middle class.

“It’s not because John McCain doesn’t care. It’s because John McCain doesn’t get it,” Obama said.

The speech brings the Democrats’ four-day convention here to a close in a dramatic open-air setting. The crowd at Invesco Field injected a party feel to the festivities hours before Obama’s arrival.

Delegates and Coloradans lucky enough to their hands on tickets for the event began trekking toward the stadium in the morning, enduring lines that stretched for miles. Once inside, there spirits didn’t appear to have dimmed. The atmosphere was electric, with performances by John Legend and Sheryl Crow sprinkled into a stream of high-octane political speeches by top Democrats.

The focus now turns to the Twin Cities, where the Republicans hold their convention next week. While the GOP makes the case for McCain, Obama and Biden will continue to hammer home their economic message in a tour of four battleground states.

-By Henry J. Pulizzi, Dow Jones Newswires; 202-862-9256; henry.pulizzi@dowjones.com

Provided by Dow Jones