Philadelphia Debate : Full Transcript with Video
Tuesday, April 19th, 2008
Constitution Hall, Philadelphia, Pennsylvania

Philadelphia Debate : Full Transcript with Video (Part 1)

GIBSON: So we're going to begin with opening statements, and we had a flip of the coin, and the brief opening statement first from Senator Obama.

OBAMA: Thank you very much, Charlie and George, and thanks to all in the audience and who are out there.

You know, Senator Clinton and I have been running for 15 months now. We've been traveling across Pennsylvania for at least the last five weeks. And everywhere I go, what I've been struck by is the core decency and generosity of people of Pennsylvania and the American people.

But what I've also been struck by is the frustration. You know, I met a gentleman in Latrobe who had lost his job and was trying to figure out how he could find the gas money to travel to find a job. And that story, I think, is typical of what we're seeing all across the country. People are frustrated not only with jobs moving and incomes being flat, health care being too expensive, but also that special interests have come to dominate Washington, and they don't feel like they're being listened to.

I think this election offers us an opportunity to change that, to transform that frustration into something more hopeful, to bring about real change. And I'm running for president to ensure that the American people are heard in the White House. That's my commitment, if the people of Pennsylvania vote for me and the people of America vote for me.

GIBSON: Senator Clinton?

CLINTON: Well, we meet tonight here in Philadelphia where our founders determined that the promise of America would be available for future generations if we were willing and able to make it happen.

You know, I am here, as is Senator Obama. Neither of us were included in those original documents. But in a very real sense, we demonstrate that that promise of America is alive and well. But it is at risk.

There is a lot of concern across Pennsylvania and America. People do feel as though their government is not solving problems, that it is not standing up for them, that we've got to do more to actually provide the good jobs that will support families, deal once and for all with health care for every American, make our education system the true passport to opportunity, restore our standing in the world.

I am running for president because I know we can meet the challenges of today, that we can continue to fulfill that promise that was offered to successive generations of Americans starting here so long ago.

And I hope that this evening, voters in Pennsylvania and others across the country will listen carefully to what we have to say, will look at our records, will look at the plans we have.

And I offer those on my website, hillaryclinton.com, for more detail. Because I believe with all my heart that we the people can have the kind of future that our children and grandchildren so richly deserve.

GIBSON: Thank you both.

And with that as preamble, we will take a very short commercial break. And we will come back and begin 90 minutes of debate. The Pennsylvania Democratic Debate continues after just one minute.

Clinton, Obama Debate Dream Ticket

GIBSON: We'll begin each of the segments of this debate with short quotes from the Constitution that are apropos to what we're going to talk about. And it is good to be back here at the National Constitution Center.

So let's start. And I'm going to give a general question, before we get to the issues, to both of you on politics.

There have already been many votes in many states, and you have each, as you analyze the vote, appealed disproportionately to different constituencies in the party, and that dismays many in the party. Governor Cuomo, an elder statesman in your party, has come forward with a suggestion. He has said, look, fight it to the end.

Let every vote be counted. You contest every delegate. Go at each other to the -- right till the end. Don't give an inch to one another. But pledge now that whichever one of you wins this contest, you'll take the other as your running mate, and that the other will agree if they lose, to take second place on the ticket.

So I put the question to both of you: Why not?

(Pause, laughter.)

Don't all speak at once. (Laughter.)

OBAMA: Well, I'm happy to start with a response. Look, this has been an extraordinary journey that both Senator Clinton and I have been on and a number of other able candidates. And I think very highly of Senator Clinton's record. But as I've said before, I think it's premature at this point for us to talk about who vice presidential candidates will be because we're still trying to determine who the nominee will be.

But one thing I'm absolutely certain of is that come August, when we're in Denver, the Democratic Party will come together, because we have no choice if we want to deliver on the promises that not only we've made but the founders made. We are seeing peoples' economic status slipping further and further behind. We've seen people who have not only lost their jobs but now are at risk of losing their homes.

We have a sharp contrast in terms of economic policies. John McCain wants to continue four more years of George Bush policies and, on the foreign policy front, wants to continue George Bush's foreign policy.

So I'm confident that both Senator Clinton's supporters and Senator Obama's supporters will be supporting the Democratic nominee when we start engaging in that general election.

GIBSON: But Senator Clinton, Governor Cuomo made that suggestion because he's not so sure. And other Democrats are not so sure.

Just to quote from the Constitution again, "In every case," Article Two, Section One, "after the choice of the president, the person having the greatest number of votes of the electors shall be the vice president."

If it was good enough in colonial times, why not in these times.

CLINTON: Well, Charlie, I'm going to do everything I possibly can to make sure that one of us takes the oath of office next January. I think that has to be the overriding goal, whatever we have to do.

Obviously we are still contesting to determine who will be the nominee. But once that is resolved, I think it is absolutely imperative that our entire party close ranks, that we become unified.

I will do everything to make sure that the people who supported me support our nominee.

I will go anywhere in the country to make the case. And I know that Barack feels the same way, because both of us have spent 15 months traveling our country. I have seen the damage of the Bush years. I've seen the extraordinary pain that people have suffered from because of the failed policies; you know, those who have held my hands who have lost sons or daughters in Iraq, and those who have lost sons or daughters because they didn't have health insurance.

And so, regardless of the differences there may be between us, and they are differences, they pale in comparison to the differences between us and Senator McCain.

So we will certainly do whatever is necessary to make sure that a Democrat is in the White House next January.

GIBSON: All right. I will let this go. I don't think Governor Cuomo has any takers yet.

Obama, Clinton on 'Bitter' Pa....

GIBSON: Let me start with a question to you, Senator Obama.

OBAMA: Yes.

GIBSON: Talking to a closed-door fundraiser in San Francisco 10 days ago, you got talking in California about small-town Pennsylvanians who have had tough economic times in recent years. And you said they get bitter, and they cling to guns or they cling to their religion or they cling to antipathy toward people who are not like them.

Now, you've said you misspoke; you said you mangled what it was you wanted to say. But we've talked to a lot of voters. Do you understand that some people in this state find that patronizing and think that you said actually what you meant?

OBAMA: Well, I think there's no doubt that I can see how people were offended. It's not the first time that I've made, you know, a statement that was mangled up. It's not going to be the last.

But let me be very clear about what I meant, because it's something that I've said in public, it's something that I've said in television, which is that people are going through very difficult times right now and we are seeing it all across the country. And that was true even before the current economic hardships that are stemming from the housing crisis. This is the first economic expansion that we just completed in which ordinary people's incomes actually went down, when adjusted for inflation, at the same time as their costs of everything from health care to gas at the pump have skyrocketed.

And so the point I was making was that when people feel like Washington's not listening to them, when they're promised year after year, decade after decade, that their economic situation is going to change, and it doesn't, then politically they end up focusing on those things that are constant, like religion.

They end up feeling "This is a place where I can find some refugee. This is something that I can count on." They end up being much more concerned about votes around things like guns, where traditions have been passed on from generation to generation. And those are incredibly important to them.

And yes, what is also true is that wedge issues, hot-button issues, end up taking prominence in our -- in our politics. And part of the problem is that when those issues are exploited, we never get to solve the issues that people really have to get some relief on, whether it's health care or education or jobs.

So this i something that I've said before. It is something that I will repeat again. And yes, people are frustrated and angry about it, but what we're seeing in this election is the opportunity to break through that frustration. And that's what our campaign has been about, saying that if the American people get involved and engaged, then we are going to start seeing change. And that's what makes this election unique.

GIBSON: Senator Clinton?

CLINTON: Well, I am the granddaughter of a factory worker from Scranton who went to work in the Scranton lace mills when he was 11 years old, worked his entire life there, mostly six-day weeks.

He was also very active in the Court Street Methodist Church. And he raised three sons and was very proud that he sent all of them to college.

I don't believe that my grandfather or my father, or the many people whom I have had the privilege of knowing and meeting across Pennsylvania over many years, cling to religion when Washington is not listening to them. I think that is a fundamental, sort of, misunderstanding of the role of religion and faith in times that are good and times that are bad.

And I similarly don't think that people cling to their traditions, like hunting and guns, either when they are frustrated with the government. I just don't believe that's how people live their lives.

Now, that doesn't mean that people are not frustrated with the government. We have every reason to be frustrated, particularly with this administration.

But I can see why people would be taken aback and offended by the remarks. And I think what's important is that we all listen to one another and we respect one another and we understand the different decisions that people make in life, because we're a stronger country because of that.

And certainly the weeks that I have spent criss-crossing Pennsylvania, from Erie to Lancaster County, and meeting a lot of wonderful people, says to me that despite whatever frustration anyone has with our government, people are resilient, they are positive, and they're ready for leadership again that will summon them to something greater than themselves, and that we will deliver on that if given a chance.

GIBSON: We're going to have some other questions on the same theme, so you'll be able to get back that.

Clinton, Obama on Obama's...

STEPHANOPOULOS: Let me pick up on this. When these comments from Senator Obama broke on Friday, Senator McCain's campaign immediately said that it was going to be a killer issue in November.

Senator Clinton, when Bill Richardson called you to say he was endorsing Barack Obama, you told him that Senator Obama can't win. I'm not going to ask you about that conversation. I know you don't want to talk about it. But a simple yes-or-no question: Do you think Senator Obama can beat John McCain or not?

CLINTON: Well, I think we have to beat John McCain, and I have every reason to believe we're going to have a Democratic president and it's going to be either Barack or me. And we're going to make that happen.

And what is important is that we understand exactly the challenges facing us in order to defeat Senator McCain.

He will be a formidable candidate. There isn't any doubt about that. He has a great American story to tell. He's a man who has served our country with distinction over many years, but he has the wrong ideas about America. And those ideas will be tested in the cauldron of this campaign.

But I also know, having now gone through 16 years of being on the receiving end of what the Republican Party dishes out, how important it is that we try to go after every single vote everywhere we possibly can to get to those electoral votes that we're going to need to have the next president elected.

STEPHANOPOULOS: But the question is, do you think Senator Obama can do that? Can he win?

CLINTON: Yes. Yes. Yes.

Now, I think that I can do a better job. (Laughter.) I mean, obviously, that's why I'm here. I think I am better able and better prepared in large measure because of what I've been through and the work that I've done and the results that I've produced for people and the coalition that I have put together in this campaign, that Charlie referred to earlier.

Obviously, I believe I would be the best president, or I would not still be here, standing on this stage, and I believe I'm the better and stronger candidate against Senator McCain, to go toe to toe with him on national security and on how we turn the economy around.

STEPHANOPOULOS: Senator Obama, do yo think Senator Clinton can win?

OBAMA: Absolutely, and I've said so before. But I too think that I'm the better candidate. (Laughter.) And I don't think that surprises anybody.

Let me just pick up on a couple of things that Senator Clinton said, though, because during the course of the last few days, you know, she's said I'm elitist, out of touch, condescending. Let me be absolutely clear. It would be pretty hard for me to be condescending towards people of faith, since I'm a person of faith and have done more than most other campaigns in reaching out specifically to people of faith, and have written about how Democrats make an error when they don't show up and speak directly to people's faith, because I think we can get those votes, and I have in the past.

The same is true with respect to gun owners. I have large numbers of sportsmen and gun owners in my home state, and they have supported me precisely because I have listened to them, and I know them well.

So the problem that we have in our politics, which is fairly typical, is that you take one person's statement, if it's not properly phrased, and you just beat it to death. And that's what Senator Clinton's been doing over the last four days. And I understand that.

That's politics, and I expect to have to go through this -- this process.

But I do think it's important to recognize that it's not helping that person who's sitting at the kitchen table who is trying to figure out how to pay the bills at the end of the month.

And Senator Clinton's right. She has gone through this. You know, I recall when back in 1992, when she made a statement about how, what do you expect, should I be at home baking cookies?

And people attacked her for being elitist and this and that. And I remember watching that on TV and saying, well, that's not who she is; that's not what she believes; that's not what she meant. And I'm sure that that's how she felt as well.

But the problem is that that's the kind of politics that we've been accustomed to. And I think Senator Clinton learned the wrong lesson from it, because she's adopting the same tactics.

What the American people want are not distractions. They want to figure out, how are we actually going to deliver on health care; how are we going to deliver better jobs for people; how are we going to improve their incomes; how are we going to send them to college?

That's what we have to focus on. And yes, they are in part frustrated and angry, because this is what passes for our politics in terms -- instead of figuring out, how do we build coalitions to actually move things forward?

CLINTON: Well, could I --

GIBSON: Senator Clinton, before I move on, do you want to do a brief response?

CLINTON: Oh, I do.

Well, first of all, I want to be very clear. My comments were about your remarks.

And I think that's important, because it wasn't just me responding to them, it was people who heard them, people who felt as though they were aimed at their values, their quality of life, the decisions that they have made.

Now, obviously, what we have to do as Democrats is make sure we get enough votes to win in November. And as George just said, you know, the Republicans, who are pretty shrewd about what it takes to win, certainly did jump on the comments.

But what's important here is what we each stand for and what our records are and what we have done over the course of our lives to try to improve the circumstances of those who deserve to live up to their own potential, to make the decisions that are right for them and their families. And I think year after year for now 35 years, I have a proven record of results.

And what I'm taking into this campaign is my passion for empowering people, for giving people the feeling that they can make a better future for themselves. And I think it's important that that starts from a base of respect and connection in order to be able to get people to follow you and believe that you will lead them in the better direction.

Clinton, Obama on Rev. Wright Remarks

GIBSON: Senator Obama, since you last debated, you made a significant speech in this building on the subject of race and your former pastor, the Reverend Jeremiah Wright. And you said subsequent to giving that speech that you never heard him say from the pulpit the kinds of things that so have offended people.

But more than a year ago, you rescinded the invitation to him to attend the event when you announced your candidacy. He was to give the invocation. And according to the reverend, I'm quoting him, you said to him, "You can get kind of rough in sermons. So what we've decided is that it's best for you not to be out there in public." I'm quoting the reverend. But what did you know about his statements that caused you to rescind that invitation?

OBAMA: Well --

GIBSON: And if you knew he got rough in sermons, why did it take you more than a year to publicly disassociate yourself from his remarks?

OBAMA: Well, understand that I hadn't seen the remarks that ended up playing on youTube repeatedly. This was a set of remarks that had been quoted in Rolling Stone Magazine and we looked at them and I thought that they would be a distraction since he had just put them forward.

But, Charlie, I've discussed this extensively. Reverend Wright is somebody who made controversial statements but they were not of the sort that we saw that offended so many Americans. And that's why I specifically said that these comments were objectionable; they're not comments that I believe in.

And I disassociated myself with them.

What I also said was, the church and the body of Reverend Wright's work, over the course of 30 years, were not represented in those snippets that were shown on television, and that the church has done outstanding work in ministries on HIV/AIDS, prison ministries, providing people with the kind of comfort that we expect in our churches.

And so what I think I tried to do in the speech here at the Constitution Center was speak to a broader context, which is that there is anger in the African American community that sometimes gets expressed, whether in the barbershop or in the church.

That's true not just in the African American community. That's true in other communities as well. But what we have the opportunity to do is to move beyond it. And that's what I think my candidacy represents.

And Senator Clinton mentioned earlier that we have to connect with people. That's exactly what we've done throughout this campaign.

The reason we've attracted new people into the process, the reason we've generated so much excitement, the reason that we have been so successful in so many states across the country, bridging racial lines, bridging some of the old divisions, is because people recognize that unless we do, then we're not going to be able to deliver on the promises that people hear every 4 years, every 8 years, every 12 years.

And it's my job in this campaign to try to move beyond some of those divisions, because when we are unified, there is nothing that we cannot tackle.

GIBSON: Senator Clinton, let me -- I'm sorry, go ahead. Senator Clinton, let me follow up, and let me add to that. You have said that he would not have been my pastor, and you said that you have to speak out against those kinds of remarks, and implicitly by getting up and moving, and I presume you mean out of the church.

There are 8,000 members of Senator Obama's church. And we have heard the inflammatory remarks of Reverend Wright, but so too have we heard testament to many great things that he did. Do you honestly believe that 8,000 people should have gotten up and walked out of that church?

CLINTON: I was asked a personal question, Charlie, and I gave a personal answer. Obviously, one's choice of church and pastor is rooted in what one believes is what you're seeking in church and what kind of, you know, fellowship you find in church. But I have to say that, you know, for Pastor Wright to have given his first sermon after 9/11 and to have blamed the United States for the attack, which happened in my city of New York, would have been intolerable for me. And therefore I would have not been able to stay in the church, and maybe it's, you know, just, again, a personal reflection that regardless of whatever good is going on -- and I have no reason to doubt that a lot of good things were happening in that church -- you get to choose your pastor. You don't choose your family, but you get to choose your pastor. And when asked a direct question, I said I would not have stayed in the church.

OBAMA: Well, let me just respond to -- to two things. Absolutely many of these remarks were objectionable. I've already said that I didn't hear them, because I wasn't in church that day. I didn't learn about those statements until much later.

But --

GIBSON: But you did rescind the invitation to him --

OBAMA: But that was on -- that was on something entirely different, Charlie. That -- that was on a different statement. And I think that what Senator Clinton referred to was extremely offensive, to me and a lot of people.

But what I should also point out is that Senator Clinton's former pastor, I think, publicly talked about how Reverend Wright was being caricatured and that in fact this is somebody who had maintained an extraordinary ministry for many years.

And so there are two important points: Number one, I wasn't aware of all these statements, and I can understand how people would take offense; but number two, the church is a community that extends beyond the pastor and that church has done outstanding work for many, many years.

The third point I guess I would make is once again that unless we can bridge some of these divides we're not going to solve problems in this country. And what my entire body of work over the last 20 years has been devoted to is getting blacks, whites, Hispanics, Asians, Native Americans, young, old to work together, starting when I was a community organizer. And my own life embodies that diversity. That's what America's about and that's what this campaign has been about.

STEPHANOPOULOS: Senator, two questions. Number one, do you think Reverend Wright loves America as much as you do? And number two, if you get the nomination, what will you do when those sermons are played on television again and again and again?

OBAMA: You know, George, look, if it's not this, then it would be something else. I promise you, if Senator Clinton got the nomination, there will be a whole bunch of video clips about other things. In a general election, we know that there are going to be all kinds of attacks launched and leveled. There have been quite a few leveled in this primary campaign.

And I have confidence in the American people that when you talk to the American people honestly and directly about what I believe in, what my plans are on health care, on energy, when they see my track record of the work that I've done on behalf of people who really need help, I have absolute confidence that they can rally behind my campaign.

And, you know, the notion that somehow that the American people are going to be distracted once again by comments not made by me but by somebody who is associated with me, that I have disowned, I think doesn't give the American people enough credit.

STEPHANOPOULOS: You've disowned him?

OBAMA: The comments, comments that I've disowned. Then that is not something that I think --

STEPHANOPOULOS: But you do believe he's as patriotic as you are?

OBAMA: This is somebody who's a former Marine. And so I have -- I believe that he loves this country, but I also believe that he's somebody who, because of the experiences he's had over the course of a lifetime, is also angry about the injustices that he's seen.

GIBSON: I'm getting a little out of balance here. Do you want to take a few seconds, or do you want to go to the next question?

CLINTON: Well, I think, in addition to the questions about Reverend Wright and what he said and when he said it, and for whatever reason he might have said these things, there were so many different variations on the explanations that we heard. And it is something that I think deserves further exploration, because clearly what we've got to figure out is how we're going to bring people together in a way that overcomes the anger, overcomes the divisiveness and whatever bitterness there may be out there.

It is clear that, as leaders, we have a choice who we associate with and who we apparently give some kind of seal of approval to. And I think that it wasn't only the specific remarks, but some of the relationships with Reverend Farrakhan, with giving the church bulletin over to the leader of Hamas to put a message in. You know, these are problems, and they raise questions in people's minds.

And so this is a legitimate area, as everything is when we run for office, for people to be exploring and trying to find answers.

Clinton, Obama on Clinton's Bosnia...

STEPHANOPOULOS: Senator Clinton, we also did a poll today, and there are also questions about you raised in this poll. About six in 10 voters that we talked to say they don't believe you're honest and trustworthy. And we also asked a lot of Pennsylvania voters for questions they had. A lot of them raised this honesty issue and your comments about being under sniper fire in Bosnia.

Here's Tom Rooney from Pittsburgh.

Q Senator, I was in your court until a couple of weeks ago. How do you reconcile the campaign of credibility that you have when you've made those comments about what happened getting off the plane in Bosnia, which totally misrepresented what really happened on that day? You really lost my vote. And what can you tell me to get that vote back?

CLINTON: Well, Tom, I can tell you that I may be a lot of things, but I'm not dumb. And I wrote about going to Bosnia in my book in 2004. I laid it all out there. And you're right. On a couple of occasions in the last weeks I just said some things that weren't in keeping with what I knew to be the case and what I had written about in my book. And, you know, I'm embarrassed by it. I have apologized for it. I've said it was a mistake. And it is, I hope, something that you can look over, because clearly I am proud that I went to Bosnia. It was a war zone.

General Wesley Clark is here in the audience with me as one of my major supporters. He and I were talking about it before I came out. You know, our soldiers were there to try to police and keep the peace in a very dangerous area. They were totally in battle gear. There were concerns about the potential dangers. The former president of Bosnia has said that he was worried about the safety of the situation.

So I know that it is something that some people have said, "Wait a minute. What happened here?" But I have talked about this and written about it. And then, unfortunately, on a few occasions I was not as accurate as I have been in the past.

But I know too that, you know, being able to rely on my experience of having gone to Bosnia, gone to more than 80 countries, having represented the United States in so many different settings gives me a tremendous advantage going into this campaign, particularly against Senator McCain.

So I will either try to get more sleep, Tom, or, you know, have somebody who, you know, is there as a reminder to me. You know, you can go back for the past 15 months. We both have said things that, you know, turned out not to be accurate. You know, that happens when you're talking as much as we have talked.

But you know, I'm very sorry that I said it. And I have said that, you know, it just didn't jibe with what I had written about and knew to be the truth.

STEPHANOPOULOS: Senator Obama, your campaign has sent out a cascade of e-mails, just about every day, questioning Senator Clinton's credibility. And you yourself have said she hasn't been fully truthful about what she would do as president.

Do you believe that Senator Clinton has been fully truthful about her past?

OBAMA: Well, look, I think that Senator Clinton has a strong record to run on. She wouldn't be here if she didn't. And you know, I haven't commented on the issue of Bosnia. You know, I --

STEPHANOPOULOS: Your campaign has.

OBAMA: Of course, but --

CLINTON: (Laughs.)

OBAMA: Because we're asked about it.

But look, the fact of the matter is, is that both of us are working as hard as we can to make sure that we're delivering a message to the American people about what we would do as president.

Sometimes that message is going to be imperfectly delivered, because we are recorded every minute of every day. And I think Senator Clinton deserves, you know, the right to make some errors once in a while. I'm -- obviously, I make some as well.

I think what's important is to make sure that we don't get so obsessed with gaffes that we lose sight of the fact that this is a defining moment in our history. We are going to be tackling some of the biggest issues that any president has dealt with in the last 40 years. Our economy is teetering not just on the edge of recession, but potentially worse. Our foreign policy is in a shambles. We are involved in two wars. People's incomes have not gone up, and their costs have. And we're seeing greater income inequality now than any time since the 1920s.

In those circumstances, for us to be obsessed with this -- these kinds of errors I think is a mistake. And that's not what our campaign has been about.

What our campaign has been about is offering some specific solutions to how we move these issues forward and identifying the need to change the culture in Washington, which we haven't talked at all about, but that has blocked real reform decade after decade after decade. That, I think, is the job of the next president of the United States.

That's what I intend to do. That's why I'm running.

Clinton, Obama Debate Patriotism

GIBSON: And Senator Obama, I want to do one more question, which goes to the basic issue of electability. And it is a question raised by a voter in Latrobe, Pennsylvania, a woman by the name of Nash McCabe. Take a look.

NASH MCCABE (Latrobe, Pennsylvania): (From videotape.) Senator Obama, I have a question, and I want to know if you believe in the American flag. I am not questioning your patriotism, but all our servicemen, policemen and EMS wear the flag. I want to know why you don't.

GIBSON: Just to add to that, I noticed you put one on yesterday. But -- you've talked about this before, but it comes up again and again when we talk to voters. And as you may know, it is all over the Internet. And it's something of a theme that Senators Clinton and McCain's advisers agree could give you a major vulnerability if you're the candidate in November. How do you convince Democrats that this would not be a vulnerability?

OBAMA: Well, look, I revere the American flag, and I would not be running for president if I did not revere this country. This is -- I would not be standing here if it wasn't for this country.

And I've said this -- again, there's no other country in which my story is even possible; somebody who was born to a teenage mom, raised by a single mother and grandparents from small towns in Kansas, you know, who was able to get an education and rise to the point where I can run for the highest office in the land. I could not help but love this country for all that it's given me.

And so what I've tried to do is to show my patriotism by how I treat veterans when I'm working in the Senate Veterans Affairs Committee; by making sure that I'm speaking forcefully about how we need to bring this war in Iraq to a close, because I think it is not serving our national security well and it's not serving our military families and our troops well; talking about how we need to restore a sense of economic fairness to this country because that's what this country has always been about, is providing upward mobility and ladders to opportunity for all Americans. That's what I love about this country. And so I will continue to fight for those issues.

And I am absolutely confident that during the general election that when I'm in a debate with John McCain, people are not going to be questioning my patriotism, they are going to be questioning how can you make people's lives a little bit better.

And let me just make one last point on this issue of the flag pin. As you noted, I wore one yesterday when a veteran handed it to me, who himself was disabled and works on behalf of disabled veterans. I have never said that I don't wear flag pins or refuse to wear flag pins. This is the kind of manufactured issue that our politics has become obsessed with and, once again, distracts us from what should be my job when I'm commander in chief, which is going to be figuring out how we get our troops out of Iraq and how we actually make our economy better for the American people.

STEPHANOPOULOS: Senator, if you get the nomination, you'll have to -- (applause) -- (inaudible).

I want to give Senator Clinton a chance to respond, but first a follow-up on this issue, the general theme of patriotism in your relationships. A gentleman named William Ayers, he was part of the Weather Underground in the 1970s. They bombed the Pentagon, the Capitol and other buildings. He's never apologized for that. And in fact, on 9/11 he was quoted in The New York Times saying, "I don't regret setting bombs; I feel we didn't do enough."

An early organizing meeting for your state senate campaign was held at his house, and your campaign has said you are friendly. Can you explain that relationship for the voters, and explain to Democrats why it won't be a problem?

SEN. OBAMA: George, but this is an example of what I'm talking about.

This is a guy who lives in my neighborhood, who's a professor of English in Chicago, who I know and who I have not received some official endorsement from. He's not somebody who I exchange ideas from on a regular basis.

And the notion that somehow as a consequence of me knowing somebody who engaged in detestable acts 40 years ago when I was 8 years old, somehow reflects on me and my values, doesn't make much sense, George.

The fact is, is that I'm also friendly with Tom Coburn, one of the most conservative Republicans in the United States Senate, who during his campaign once said that it might be appropriate to apply the death penalty to those who carried out abortions.

Do I need to apologize for Mr. Coburn's statements? Because I certainly don't agree with those either.

So this kind of game, in which anybody who I know, regardless of how flimsy the relationship is, is somehow -- somehow their ideas could be attributed to me -- I think the American people are smarter than that. They're not going to suggest somehow that that is reflective of my views, because it obviously isn't.

SEN. CLINTON: Well, I think that is a fair general statement, but I also believe that Senator Obama served on a board with Mr. Ayers for a period of time, the Woods Foundation, which was a paid directorship position.

And if I'm not mistaken, that relationship with Mr. Ayers on this board continued after 9/11 and after his reported comments, which were deeply hurtful to people in New York, and I would hope to every American, because they were published on 9/11 and he said that he was just sorry they hadn't done more. And what they did was set bombs and in some instances people died. So it is -- you know, I think it is, again, an issue that people will be asking about. And I have no doubt -- I know Senator Obama's a good man and I respect him greatly but I think that this is an issue that certainly the Republicans will be raising.

And it goes to this larger set of concerns about, you know, how we are going to run against John McCain. You know, I wish the Republicans would apologize for the disaster of the Bush-Cheney years and not run anybody, just say that it's time for the Democrats to go back into the White House. (Laughter, applause.)

Unfortunately, they don't seem to be willing to do that. So we know that they're going to be out there, full force. And you know, I've been in this arena for a long time. I have a lot of baggage, and everybody has rummaged through it for years. (Laughter.) And so therefore, I have, you know, an opportunity to come to this campaign with a very strong conviction and feeling that I will be able to withstand whatever the Republican sends our way.

OBAMA: I'm going to have to respond to this just really quickly, but by Senator Clinton's own vetting standards, I don't think she would make it, since President Clinton pardoned or commuted the sentences of two members of the Weather Underground, which I think is a slightly more significant act than me --

AUDIENCE MEMBER: (Applauds.)

GIBSON: Please.

OBAMA: -- than me serving on a board with somebody for actions that he did 40 years ago.

Look, there is no doubt that the Republicans will attack either of us. What I've been able to display during the course of this primary is that I can take a punch. I've taken some pretty good ones from Senator Clinton. And I don't begrudge her that. That's part of what the political contest is about.

I am looking forward to having a debate with John McCain, and I think every poll indicates that I am doing just as well, if not better, in pulling together the coalition that will defeat John McCain.

And when it comes to November, and people are going into the polling place, they're going to be asking, are we going to go through four more years of George Bush economic policies; are we going to go through four more years of George Bush foreign policy?

And if we as Democrats and if I as the nominee have put forward a clear vision for how we're going to move the country forward, deal with issues like energy dependence, lower gas prices, provide health care, get our troops out of Iraq, that is a debate that I'm happy to have and a debate that I'm confident I can win.

GIBSON: And Senator Clinton, I'm getting out of balance in terms of time.

CLINTON: I've noticed. (Laughs.)

GIBSON: And you're getting shortchanged here. And so if you want to reply here, fine. If you want to wait, we'll do it in the next half hour.

CLINTON: We can wait.

GIBSON: All right.

We will take a commercial break. We will come back. And the Democratic debate, from the city of Philadelphia before the Pennsylvania primary, will continue. Stay with us. (Applause.)

Clinton, Obama Argue Iraq War Policy

GIBSON: Another quote from the Constitution, apropos because we are here, as you heard just a moment ago, at the Constitution Center.

Senator Clinton, a question for you. We talked about the military applications from the Constitution and this is a question that involves the war in Iraq. It comes from Mandy Garber of Pittsburgh. Take a look.

MANDY GARBER (Pittsburgh, Pennsylvania): So, the real question is, I mean, do the candidates have a real plan to get us out of Iraq or is it just real campaign propaganda? And you know, it's really unclear. They keep saying we want to bring the troops back, but considering what's happening on the ground, how is that going to happen?

GIBSON: Let me just add a little bit to that question, because your communications director in your campaign, Howard Wolfson on a conference call recently was asked, "Is Senator Clinton going to stick to her announced plan of bringing one or two brigades out of Iraq every month whatever the realities on the ground?" And Wolfson said, "I'm giving you a one-word answer so we can be clear about it, the answer is yes."

So if the military commanders in Iraq came to you on day one and said this kind of withdrawal would destabilize Iraq, it would set back all of the gains that we have made, no matter what, you're going to order those troops to come home?

CLINTON: Yes, I am, Charlie. And here's why: You know, thankfully we have a system in our country of civilian control of the military. And our professional military are the best in the world. They give their best advice and then they execute the policies of the president. I have watched this president as he has continued to change the rationale and move the goalposts when it comes to Iraq.

And I am convinced that it is in America's best interest, it is in the best interest of our military, and I even believe it is in the best interest of Iraq, that upon taking office, I will ask the secretary of Defense and the Joint Chiefs of Staff and my security advisers to immediately put together for me a plan so that I can begin to withdraw within 60 days. I will make it very clear that we will do so in a responsible and careful manner, because obviously, withdrawing troops and equipment is dangerous.

I will also make it clear to the Iraqis that they no longer have a blank check from the president of the United States, because I believe that it will be only through our commitment to withdraw that the Iraqis will begin to do what they have failed to do for all of these years.

I will also begin an intensive diplomatic effort, both within the region and internationally, to begin to try to get other countries to understand the stakes that we all face when it comes to the future of Iraq.

But I have been convinced and very clear that I will begin to withdraw troops within 60 days. And we've had other instances in our history where some military commanders have been very publicly opposed to what a president was proposing to do.

But I think it's important that this decision be made, and I intend to make it.

GIBSON: But Senator Clinton, aren't you saying -- I mean, General Petraeus was in Washington. You both were there when he testified, saying that the gains in Iraq are fragile and are reversible. Are you essentially saying, "I know better than the military commanders here"?

CLINTON: No, what I'm saying, Charlie, is that no one can predict what will happen. There are many different scenarios. But one thing I am sure of is that our staying in Iraq, our continuing to lose our men and women in uniform, having many injured, the Iraqi casualties that we are seeing as well, is -- is no way for us to maintain a strong position in the world.

It's not only about Iraq. It is about ending the war in Iraq, so that we can begin paying attention to all of the other problems we have. There isn't any doubt that Afghanistan has been neglected. It has not gotten the resources that it needs. We hear that from our military commanders responsible for that region of the world. And there are other problems that we have failed to address.

So the bottom line for me is, we don't know what will happen as we withdraw. We do know what will happen if we stay mired in Iraq. The Iraqi government will not accept responsibility for its own future.

Our military will continue to be stretched thin, and our soldiers will be on their second, third, even their fourth deployment. And we will not be able to reassert our leadership and our moral authority in the world.

And I think those are the kind of broad issues that a president has to take into account.

GIBSON: And Senator Obama, your campaign manager, David Plouffe, said, when he is -- this is talking about you -- when he is elected president, we will be out of Iraq in 16 months at the most; there should be no confusion about that.

So you'd give the same rock-hard pledge, that no matter what the military commanders said, you would give the order: Bring them home.

OBAMA: Because the commander in chief sets the mission, Charlie. That's not the role of the generals. And one of the things that's been interesting about the president's approach lately has been to say, well, I'm just taking cues from General Petraeus.

Well, the president sets the mission. The general and our troops carry out that mission. And unfortunately we have had a bad mission, set by our civilian leadership, which our military has performed brilliantly. But it is time for us to set a strategy that is going to make the American people safer.

Now, I will always listen to our commanders on the ground with respect to tactics. Once I've given them a new mission, that we are going to proceed deliberately in an orderly fashion out of Iraq and we are going to have our combat troops out, we will not have permanent bases there, once I've provided that mission, if they come to me and want to adjust tactics, then I will certainly take their recommendations into consideration; but ultimately the buck stops with me as the commander in chief.

And what I have to look at is not just the situation in Iraq, but the fact that we continue to see al Qaeda getting stronger in Afghanistan and in Pakistan, we continue to see anti-American sentiment fanned all cross the Middle East, we are overstretched in a way -- we do not have a strategic reserve at this point. If there was another crisis that was taking place, we would not have a brigade that we could send to deal with that crisis that isn't already scheduled to be deployed in Iraq. That is not sustainable. That's not smart national security policy, and it's going to change when I'm president.

STEPHANOPOULOS: Senator Obama, let's stay in the region. Iran continues to pursue a nuclear option. Those weapons, if they got them, would probably pose the greatest threat to Israel. During the Cold War, it was the United States policy to extend deterrence to our NATO allies. An attack on Great Britain would be treated as if it were an attack on the United States. Should it be U.S. policy now to treat an Iranian attack on Israel as if it were an attack on the United States?

SEN. OBAMA: Well, our first step should be to keep nuclear weapons out of the hands of the Iranians, and that has to be one of our top priorities. And I will make it one of our top priorities when I'm president of the United States.

I have said I will do whatever is required to prevent the Iranians from obtaining nuclear weapons. I believe that that includes direct talks with the Iranians where we are laying out very clearly for them, here are the issues that we find unacceptable, not only development of nuclear weapons but also funding terrorist organizations like Hamas and Hezbollah, as well as their anti-Israel rhetoric and threats towards Israel. I believe that we can offer them carrots and sticks, but we've got to directly engage and make absolutely clear to them what our posture is.

Now, my belief is that they should also know that I will take no options off the table when it comes to preventing them from using nuclear weapons or obtaining nuclear weapons, and that would include any threats directed at Israel or any of our allies in the region.

STEPHANOPOULOS: So you would extend our deterrent to Israel?

OBAMA: As I've said before, I think it is very important that Iran understands that an attack on Israel is an attack on our strongest ally in the region, one that we -- one whose security we consider paramount, and that -- that would be an act of aggression that we -- that I would -- that I would consider an attack that is unacceptable, and the United States would take appropriate action.

STEPHANOPOULOS: Senator Clinton, would you?

CLINTON: Well, in fact, George, I think that we should be looking to create an umbrella of deterrence that goes much further than just Israel. Of course I would make it clear to the Iranians that an attack on Israel would incur massive retaliation from the United States, but I would do the same with other countries in the region.

You know, we are at a very dangerous point with Iran. The Bush policy has failed. Iran has not been deterred. They continue to try to not only obtain the fissile material for nuclear weapons but they are intent upon and using their efforts to intimidate the region and to have their way when it comes to the support of terrorism in Lebanon and elsewhere.

And I think that this is an opportunity, with skillful diplomacy, for the United States to go to the region and enlist the region in a security agreement vis-a-vis Iran. It would give us three tools we don't now have.

Number one, we've got to begin diplomatic engagement with Iran, and we want the region and the world to understand how serious we are about it. And I would begin those discussions at a low level. I certainly would not meet with Ahmadinejad, because even again today he made light of 9/11 and said he's not even sure it happened and that people actually died. He's not someone who would have an opportunity to meet with me in the White House. But I would have a diplomatic process that would engage him.

And secondly, we've got to deter other countries from feeling that they have to acquire nuclear weapons. You can't go to the Saudis or the Kuwaitis or UAE and others who have a legitimate concern about Iran and say: Well, don't acquire these weapons to defend yourself unless you're also willing to say we will provide a deterrent backup and we will let the Iranians know that, yes, an attack on Israel would trigger massive retaliation, but so would an attack on those countries that are willing to go under this security umbrella and forswear their own nuclear ambitions.

And finally we cannot permit Iran to become a nuclear weapons power. And this administration has failed in our efforts to convince the rest of the world that that is a danger, not only to us and not just to Israel but to the region and beyond.

Therefore we have got to have this process that reaches out, beyond even who we would put under the security umbrella, to get the rest of the world on our side to try to impose the kind of sanctions and diplomatic efforts that might prevent this from occurring.

Clinton, Obama Debate Tax Reform

STEPHANOPOULOS: Let me turn to the economy. That is the number one issue on Americans' minds right now.

Yesterday, Senator McCain singled that the number one issue, in the general election campaign on the economy, is going to be taxes. And he says that both of you are going to raise taxes, not just on the wealthy but on everyone. Here's what he said in his speech yesterday.

JOHN MCCAIN (R-AZ): (Pre-recorded remarks.) All these tax increases are under the fine print of the slogan: hope. They're going to raise your taxes by thousands of dollars a year. And they have the audacity to hope you don't mind.

(Laughter.)

STEPHANOPOULOS: Senator Clinton, two-part question.

Two-part question: Can you make an absolute, read-my-lips pledge that there will be no tax increases of any kind for anyone earning under $200,000 a year?

And if the economy is as weak a year from now as it is today, will you -- will you persist in your plans to roll back President Bush's tax cuts for wealthier Americans?

CLINTON: Well, George, I have made a commitment that I will let the taxes on people making more than $250,000 a year go back to the rates that they were paying in the 1990s.

STEPHANOPOULOS: Even if the economy is weak?

CLINTON: Yes. And here's why: Number one, I do not believe that it will detrimentally affect the economy by doing that. As I recall, you know, we used that tool during the 1990s to very good effect and I think we can do so again.

I am absolutely committed to not raising a single tax on middle class Americans, people making less than $250,000 a year. In fact, I have a very specific plan of $100 billion in tax cuts that would go to help people afford health care, security retirement plans, you know, make it possible for people to get long-term care insurance and care for their parents and grandparents who they are trying to support, making college affordable and so much else.

Well, if you look at how we'd have to sequence that, we might not be able to do all of that at once. But if you go to my website, HillaryClinton.com, it is laid out there how I will pay for everything, because everything I have proposed, I have put in how I would pay for it.

STEPHANOPOULOS: An absolute commitment, no middle-class tax increases of any kind.

CLINTON: No, that's right. That is my commitment.

GIBSON: Senator Obama?

STEPHANOPOULOS: Would you take the same pledge?

OBAMA: Well, I not only have pledged not to raise their taxes, I've been the first candidate in this race to specifically say I would cut their taxes.

And one of the centerpieces of my economic plan would be to say that we are going to offset the payroll tax, the most regressive of our taxes, so that families who are earning -- who are middle-income individuals making $75,000 a year or less, that they would get a tax break so that families would see up to a thousand dollars worth of relief.

Senior citizens who have earnings of less than $50,000 wouldn't have to pay income tax on their Social Security. And middle-class homeowners who currently don't itemize on their tax filings, they would be able to get a deduction the same way that wealthy individuals do.

Now, here's the reason why that's important. We have seen wages and incomes flat or declining at a time when costs have gone up. And one of the things that we've learned from George Bush's economic policies, which John McCain now wants to follow, is that pain trickles up. And so, partly because people have been strapped and have had a tough time making ends meet, we're now seeing a deteriorating housing market.

That's also as a consequence of the lack of oversight and regulation of these banks and financial institutions that gave loans that they shouldn't have. And part of it has to do with the fact that you had $185 million by mortgage lenders spent on lobbyists and special interests who were writing these laws.

So the rules in Washington -- the tax code has been written on behalf of the well connected. Our trade laws have -- same thing has happened. And part of how we're going to be able to deliver on middle-class tax relief is to change how business is done in Washington. And that's been a central focus of our campaign.

GIBSON: Senator Obama, you both have now just taken this pledge on people under $250,000 and 200-and-what, 250,000.

OBAMA: Well, it depends on how you calculate it. But it would be between 200 and 250,000.

GIBSON: All right.

You have however said you would favor an increase in the capital gains tax. As a matter of fact, you said on CNBC, and I quote, "I certainly would not go above what existed under Bill Clinton, which was 28 percent."

It's now 15 percent. That's almost a doubling if you went to 28 percent. But actually Bill Clinton in 1997 signed legislation that dropped the capital gains tax to 20 percent.

OBAMA: Right.

GIBSON: And George Bush has taken it down to 15 percent.

OBAMA: Right.

GIBSON: And in each instance, when the rate dropped, revenues from the tax increased. The government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down. So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?

OBAMA: Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness. We saw an article today which showed that the top 50 hedge fund managers made $29 billion last year -- $29 billion for 50 individuals. And part of what has happened is that those who are able to work the stock market and amass huge fortunes on capital gains are paying a lower tax rate than their secretaries. That's not fair.

And what I want is not oppressive taxation. I want businesses to thrive and I want people to be rewarded for their success. But what I also want to make sure is that our tax system is fair and that we are able to finance health care for Americans who currently don't have it and that we're able to invest in our infrastructure and invest in our schools.

And you can't do that for free, and you can't take out a credit card from the Bank of China in the name of our children and our grandchildren and then say that you're cutting taxes, which is essentially what John McCain has been talking about. And that is irresponsible.

You know, I believe in the principle that you pay as you go, and you don't propose tax cuts unless you are closing other tax breaks for individuals. And you don't increase spending unless you're eliminating some spending or you're finding some new revenue. That's how we got an additional $4 trillion worth of debt under George Bush. That is helping to undermine our economy, and it's going to change when I'm president of the United States.

GIBSON: But history shows that when you drop the capital gains tax, the revenues go up.

OBAMA: Well, that might happen or it might not. It depends on what's happening on Wall Street and how business is going. I think the biggest problem that we've got on Wall Street right now is the fact that we've got a housing crisis that this president has not been attentive to and that it took John McCain three tries before he got it right.

And if we can stabilize that market and we can get credit flowing again, then I think we'll see stocks do well, and once again I think we can generate the revenue that we need to run this government and hopefully to pay down some of this debt.

GIBSON: Senator Clinton.

CLINTON: Well, let me start by saying that I think we know that we've got to get back to an economy that works for everyone. The president has been very good for people who are doing well, and that's great. But it was better for our country when we had an economy that lifted everyone up at the same time, and we had that during the 1990s; you know, 22.7 million new jobs, more people lifted out of poverty than any time in our recent history. A typical family saw a $7,000 increase in income.

And we have lost that. You know, now the typical family has lost at least $1,000. And the fact is that, you know, I don't want to take one more penny of tax money from anybody. But what I want to do is make some smart investments. And I was the first to come out with a strategic energy fund, where we need to be investing in clean renewable energy. And I think we could put 5 million Americans to work.

I think we have to invest in our infrastructure. That also will get the economy moving again, and I believe we could put about 3 million people to work in good union jobs where people get a good wage with a good set of benefits that can support a middle-class family with a rising standard of living.

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