ST. PAUL, Minn. - Anti-tax activist Grover Norquist waved off a report today that Republican vice presidential candidate Sarah Palin had secured a large federal grant for town of 6,700 people.

Norquist used his speech before the Nevada delegation this morning to rail against Democratic presidential nominee Barack Obama, saying the Illinois lawmaker's tax policies would cost Americans of their hard-earned money.

"He doesn't understand the damage he would do to the economy," Norquist told the gathering.

And Norquist praised Palin for her policies on earmarks and documenting where Alaska had obtained its funding.

Outside the meeting, PolitickerNV.com asked Norquist about the report in Tuesday's Washington Post that detailed Palin's hiring a lobbying firm to obtain $27 million in earmarks for the small town of Wasilla, which she served as mayor of from 1996 to 2002.

"I am in favor of getting rid of earmarks, of reducing earmarks," said Norquist. "I'm for any rule that diminishes it."

But Norquist, who is president of the Americans for Tax Reform, acknowledged that politicians were often under pressure to obtain earmarks.

"I'd prefer the ‘heck no' position, but not everyone can get elected with that," he said.

Norquist said he was "much more interested" in where Palin stood on the issue "going forward," but that the ultimately responsibility for earmarks lay in the federal government.

"You can't stop the states from asking," he said. "You have to stop the feds from giving."