TRANSCRIPT: 'On the Trail' with Sen. John McCain

STEPHANOPOULOS: Are you sticking by that?

MCCAIN: What I mean by that is that it's cap-and-trade, that there will be incentives for people to reduce greenhouse gas emissions. It's a free-market approach. The Europeans are using it now. We did it in the case of addressing acid rain -- look, if we do that, we stimulate green technologies. I have great faith in the American industry. General Electric, the world's largest corporation, has announced they're dedicated to green technologies. This will be profit-making business.

It won't cost the American taxpayer. It will make profits, because we'll move forward with the innovation and ability of American industry to address this issue.

STEPHANOPOULOS: How about the broader frame of this election?

HILLARY CLINTON: I have the greatest respect for my friend and my colleague Sen. McCain, but I believe that he offers more of the same. More of the same economic policies. More of the same of the same military policies in Iraq.

STEPHANOPOULOS: Both Sen. Clinton and Sen. Obama are basically saying, "Vote for John McCain, you're voting for a third Bush term."

MCCAIN: Well, they can -- you know, they're free to say most anything they want to. We will wage this campaign on profound and significant philosophical difference. They are...

Sen. Obama -- how am I different? Climate change. Climate change is an issue. Spending is another issue. There's a number of issues. But Sen. Obama was judged by the National Journal as the most liberal senator in the United States Senate. I'm proud of being a conservative Republican.

We will have a respectful but spirited debate, and the same thing with Sen. Clinton. We'll argue about earmarks and pork-barrel projects. Why is it that Sen. Clinton got $340 million of pork-barrel projects? Sen. Obama only $92 million.

But more importantly, we'll argue about whether we should increase your taxes or decrease them. Obviously, I'm for decreases in taxes. Maybe Americans want their taxes increased. We'll argue about...

STEPHANOPOULOS: ... for middle-income Americans, only raise them on the wealthy?

MCCAIN: Oh, yes, sure, the wealthy, the wealthy. Always be interested in when people talk about who the, quote, "wealthy" are in America. I find it interesting.

But, also, health care. They want the government to run the health care system in America. I want the families to make the choice. We're going to have a number of very significant...

STEPHANOPOULOS: They say your plan won't reduce the ranks of the uninsured.

MCCAIN: They can say whatever they would like. But the fact is that if we bring health care costs under control, and give families choices, and have medical malpractice reform, and treat the chronic diseases with outcome-based rewards and payments, and a number of other things, which we hold hours-long health care forums on, we can preserve the highest-quality health care in the world in America, but we've got to make it affordable and available.

If you like Sen. Obama's plan and Sen. Clinton's plan, go to Canada or one of the European countries before you make that decision.

STEPHANOPOULOS: But you've said before that we should be open to importing drugs from Canada.

MCCAIN: Sure. Why not? Wherever it's cheaper. Wherever it's cheaper.

STEPHANOPOULOS: So you have no problem with...

MCCAIN: Wherever it is cheaper and we can be assured it's safe.

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