IA-04: Latham goes negative, touts opposition to bailout (updated)

UPDATE: The DCCC  added IA-04 to the Red to Blue list on October 14 and moved IA-05 up from Races to Watch to Emerging Races.

There have been no public polls in the race between Republican incumbent Tom Latham and Becky Greenwald in Iowa’s fourth Congressional district, and neither candidate has released any results from internal polling.

However, Latham may be increasingly concerned about holding this D+0 district amid what looks like a landslide victory for Barack Obama in Iowa.

Until this week, Latham’s campaign messaging touted his record and mostly ignored his challenger. But on Monday he went negative, issuing this statement blasting Greenwald’s support for the recent bailout package. (She came out against the first bailout bill the House considered but supported the version that cleared the Senate before coming up for a House vote.)

Latham voted against both bailout bills, one of very few times he’s ever refused to support something the Bush administration wanted. For months, Greenwald has been hitting him on his lockstep Republican voting record. He is clearly grateful to have this issue to separate him from the White House and Republican leadership in Congress.

Last week Latham and Greenwald held two radio debates, and Latham brought up his no votes on the bailout at every opportunity. I commented at Bleeding Heartland that the bailout was the only thing that kept the second debate from being a rout for Greenwald.

During and after the debates, Greenwald brought up Latham’s consistent Republican voting record on lots of issues, including the deregulation of the banking sector which has contributed to the current economic problems. She also linked Latham to John McCain’s failed approach on health care reform and hammered him for supporting a privatization scheme for Social Security.

Latham denies he has backed privatizing Social Security, but to paraphrase Josh Marshall, he uses classic Republican “bamboozlement” language on this issue. He has supported private investment accounts, which could be devastating to seniors’ income in a bear market.

Greenwald has challenged Latham to televised debates as well. He declined one invitation and is dragging his feet on rescheduling an Iowa Public Television debate that was postponed while Congress was considering the bailout.

The third quarter financial reports for Latham and Greenwald are not available at Open Secrets yet. As of June 30, Latham had a big cash on hand advantage, in part because he sits on the House Appropriations Committee and in part because Greenwald had to get through a four-way Democratic primary (she won with more than 50 percent of the vote).

Greenwald’s summer fundraising must have been reasonably strong, because she went up on tv in September, got the endorsement of EMILY’s List, and was put on the Democratic Congressional Campaign Committee’s “Emerging Races” list.

No doubt Latham still has a money edge, because he has been advertising more extensively on tv and radio throughout the district. His first two television commercials focused on a bill he co-authored to address the nursing shortage and the need to “crack down on Wall Street greed” and help Main Street businesses.

Most House race rankings still put IA-04 in the “likely Republican” category, but this is a district to watch, especially in light of the big Democratic gains in voter registration and Obama’s double-digit statewide lead over McCain, confirmed by at least ten polls.

If Latham does hold on to his seat, I think he should send Nancy Pelosi a thank-you note. Here’s Latham’s voting record on corporate subsidies. Here’s Latham’s voting record that relates to government checks on corporate power. Here’s Latham’s voting record on corporate tax breaks in general (including sub-categories on tax breaks for the oil and gas industry and for the wealthiest individuals).

Yet despite his long record of standing with corporations rather than middle-class taxpayers, the bailout has allowed Latham to position himself this way going into the home stretch of the campaign:

“Reckless Wall Street CEO’s made a mess and they asked Iowans to pay to clean it up,” noted Latham for Congress spokesperson Matt Hinch. “Tom Latham stood up in Congress and protected Iowans by twice voting no on this massive Wall Street bailout. Tom Latham believes that, as a matter of principle, it is wrong to spend hundreds of billions of taxpayer dollars to reward, benefit and bailout those on Wall Street who created this mess.”

Highlights of Becky Greenwald’s endorsed Wall Street bailout plan includes:

* The largest corporate welfare proposal in U.S. history all at taxpayer expense;

* Gives the U.S. Secretary of the Treasury, and Wall Street veteran and former Goldman Sachs CEO, Henry Paulson a no-strings checkbook with $700 billion in taxpayer funds to spend as he sees fit;

* The Washington Post reports that there is a strong possibility of conflicts of interest, since the same companies who created the mess on Wall Street will, “be managing the assets while also selling their own troubled securities to the government.”;

* Taxpayer funded pork in the bill included tax breaks for rum, sports entities, television and the manufacturer of wooden arrows for children;

* And, no guarantee by Secretary Paulson that his plan will actually work.

“Becky Greenwald would reward the same greedy CEO’s who caused this crisis,” continued Hinch. “Becky Greenwald would spend $700 billion of Iowans’ money to fix Wall Street mistakes and greed. No accountability and no guarantee it will even work. It’s clear that Iowans can’t trust Becky Greenwald with our tax dollars.”

I don’t know whether this tactic will work for Latham, but I do know that if he were very confident, he would be sticking to a positive message.