Follow The Money

I think we're finally starting to see some traction on John McCain's ties to Big Oil. It takes a candidate ad to put these things into the media bloodstream, and now they're more encouraged to run with it. Campaign Money Watch has done some good work with this too. The fact that McCain got over a million dollars in oil executive contributions almost immediately after relinquishing on his stance on offshore drilling is too juicy to pass up, and the Hess Corporation donations add to the intrigue.

Senator John McCain received a burst of donations in June from oil company employees after he came out in favor of offshore drilling, according to a report released last week by Campaign Money Watch, a watchdog organization.

But the largest collective response from a single company, the report noted, came from the Hess Corporation. Together, Hess employees or their relatives poured out more than $300,000 to Mr. McCain’s joint fund-raising committee with the Republican National Committee in June, according to campaign finance records.

On Monday, after the web site, Talking Points Memo, listed the names of the Hess contributors, scrutiny fell on a couple, Alice Rocchio, who is identified in campaign finance records as an office manager at Hess, and her husband, Pasquale, who is listed as a foreman at Amtrak.

They each gave a whopping $28,500 to Mr. McCain and the Republican National Committee [...]

Mr. McCain’s joint fund-raising committee took in more than $1.2 million in contributions in Texas alone from oil and gas-related donors in June, according to Campaign Money Watch. More than 70 percent of that money came after June 15, the day before Mr. McCain came out in favor of offshore drilling.

Further digging from the WaPo has found that a driver for Hess maxed out to McCain as well.

It's entirely possible these contributions are legitimate and that Hess staffers just love McCain ever since he flipped on drilling. That's the charitable explanation. The bad one is illegal straw contributions from oil companies, and McCain's track record on campaign finance in this election (he's actually breaking the law as we speak) is not good.

I sense that Obama will continue on the offense here. Here is just some of the research they've cited in today's email:

McCain Has Raised More Than $2.1 Million From The Oil And Gas Industry. According to the Center for Responsive Politics, John McCain received $1,039,768 in contributions from the oil and gas industry between January 2007 and May 2008 – a figure which dwarfs any other presidential candidates' oil industry money. In addition, the Washington Post reported that "campaign contributions from oil industry executives to Sen. John McCain rose dramatically in the last half of June, after the senator from Arizona made a high-profile split with environmentalists and reversed his opposition to the federal ban on offshore drilling." According to the Post's analysis, oil and gas industry executives and employees contributed $1.1 million to McCain and the Republican National Committee's Victory Fund in June – three-quarters of which were donated after McCain's June 16th announcement that he supported ending the moratorium on offshore drilling. These contributions, when combined with the $1.03 million raised by McCain prior to the month of June, indicated that he has raised more than $2.1 million from the oil and gas industry. [Center for Responsive Politics website, "Selected Industry Totals to Candidates," accessed 7/31/08; Washington Post, 7/27/08; "Oil Flow," WashingtonPost.com graphic, accessed 8/3/08]

· McCain Voted Against Closing Loopholes On Foreign Oil Incomes And Tax Havens. McCain voted against an amendment to the 2006 Tax Reconciliation bill extending expiring tax provisions. The amendment was offset by closing loopholes on foreign oil income, tax havens and withholding on government contractors. Obama: Y, McCain: N [2006 Senate Vote #3, 2/2/2006]

· McCain Voted Against A One-Year Tax On Oil Companies To Fund Low Income Energy Assistance. McCain voted against considering an amendment to the 2005 Tax Relief legislation that provided $2.92 billion in FY 2006 for the Low-Income Energy Assistance Act. The legislation was offset by imposing one year levy on excess profits of U.S. oil companies and foreign companies that do substantial U.S. business. Obama: Y, McCain: N [2005 Senate Vote #339, 11/17/2005]

· McCain Voted Against Imposing A 50 Percent Excise Tax On Oil Company Windfall Profits. John McCain voted against an amendment to the 2005 Energy Policy Act to impose a 50 percent excise tax on windfall profits earned by major integrated U.S. oil companies on sale or constructive sale of taxable crude oil derived from existing wells during tax year. The amendment defined "windfall profits" as amount that a barrel of taxable crude oil sold or constructively sold exceeds $40 per barrel, adjusted annually for inflation and also provided for a reduction in the tax for exploration and development costs, investments in certain renewable facilities, and increases in domestic refinery capacity. Funds collected from the tax would have been returned to taxpayers in the form of rebates. [2005 Senate Vote #331, 11/17/05; Houston Chronicle, 11/17/05; Las Vegas Review-Journal, 11/18/05; Environment and Energy Daily¸ 11/18/05]

· McCain Voted To Continue Tax Deductions For Oil And Gas Development. McCain voted against an amendment to the 1995 Budget Reconciliation bill that proposed to eliminate three existing law tax preferences: the deduction for intangible oil and gas drilling and development costs, the foreign-earned income exclusion and the Puerto Rico and possessions tax credit. It also would have struck a provision repealing the corporate alternative minimum tax. (CQ) McCain: N [1995 Senate Vote #521, 10/27/1995]

· McCain Voted Against A 40 Percent Windfall Profit Tax On "Old" Oil. McCain voted against an amendment to the 1990 Omnibus Budget Reconciliation bill to reinstate the 40 percent windfall profit tax on "old" (tier 1) oil sold by major integrated oil companies in excess of $25 per barrel; and reduces gasoline and diesel taxes by amount equivalent to revenue raised. McCain: N [1990 Senate Vote #288, 10/18/1990]

· McCain Voted Against Creating A Wetland Protection Fund By Taxing Oil From OCS. McCain voted against an amendment to the Oil Pollution Liability and Compensation Act that would have created a Wetland Protection, Restoration, and Enhancement Fund, funded by existing three cents per barrel fee on OCS oil, with fund availability subject to authorizing legislation. McCain: Y [1989 Senate Vote #165, 8/3/1989]

· McCain Voted To Repeal The Windfall Profits Tax On Domestic Crude Oil. McCain voted for an amendment to the 1987 Trade and Competitiveness Act to repeal the windfall profits tax on domestic crude oil. (CQ) McCain: Y [1987 Senate Vote #200, 7/16/1987]