Chambliss On Fiscal Issues

Today’s Courier Herald Column:

Most of us rang in the New Year at some sort of festive gathering.  Senator Saxby Chambliss rang in the new year preparing to vote on the latest solution to avert fiscal crisis in Washington.  It was a bit less than festive.  The votes were cast in the first hours of 2013.

Now one week later, the Senator is back in Georgia during a scheduled Senate break.  He’s meeting with constituents and press talking about the vote as well as the upcoming additional deadlines Washington must meet in order to keep things moving.  I was granted some time with him to talk on Tuesday morning.

Regarding the vote on tax rates January 1st, Chambliss is generally pleased with the positive points of the bill while still conceding it is an “ugly product”.  He, like most Republicans that voted for it, emphasizes that this bill has ended the discussion on taxes and claims a victory on the matter.  The temporary “Bush Tax Cuts” are now permanent with income tax rates the same for 99.1% of all tax payers.  He notes that this is something Republicans were unable to do when they held majorities in both the House and Senate as well as the White House.

The challenge now moves to a set of deadlines over a six week period.  The debt ceiling must be raised by mid-February.  Sequestration cuts which will affect the military the hardest are scheduled for March 1st if not re-negotiated, and Congress has only appropriated a Continuing Resolution to fund the government’s activities through the end of March.

These deadlines change the subject to spending when looking at deficit reduction, especially in the eyes of Chambliss.  “We are through with taxes” he said emphatically while noting that Congress’ attention now must be on making the hard choices on what and how to cut.

The choices of what to cut will not come easy, with Chambliss being quite direct that most of us will feel some sort of “pain”.  There will, of course, be political resistance – even from Republicans.  “People don’t like to feel it” he conceded, noting that many of the areas that will be cut serve people across political and ideological lines.

Asked how we get there, Chambliss spoke mostly in frameworks, as he and his Senate colleges have been doing for some time with an approach to a grand bargain.  Baselines must be something that become a discarded concept if real cuts are to be made.  He detailed how Congress traditionally looks at spending on a projected year over year increase – the baseline.  Thus, if Congress had projected spending in one area was going to increase 5%, and they only appropriated an increase of 2%, it is currently considered a cut.  Chambliss believes Congress and the American people have to learn to accept that this is not a cut, but start understanding that programs and departments will see something like 98 cents for every dollar spent the previous year, rather than just trying to make the increase smaller.

Because the process has been stalled and delayed for the last two years, Chambliss now says the target for savings over 10 years must be increased to $5 Trillion, up from the previous target of $4 Trillion.  Key to long term deficit reduction is to get more people working and adding them back to tax rolls.  Tax reform will be integral to longer term discussions on the subject.  He expects to see bipartisan agreement on some measures from the corporate side, with a goal to incentivize companies to repatriate foreign cash holdings and reinvest back here at home.

Despite acknowledging that Congress and even the Senate have grown bitterly partisan making it tougher to work across the aisle, Chambliss does believe that he and his Senate colleagues can come together on a spending plan that will achieve their goals.  He remains circumspect about finding an agreement in the house, where Democrats are more averse to entitlement reform than their Senate counterparts and several Republicans are likely to withhold their votes favoring more and deeper cuts to whatever will be agreed upon.

All in all, Chambliss’ tone is serious but not negative.  “I came here to solve problems” he said without hesitation or hint of regret, even looking forward to the waiting list of issues that must be tackled after a resolution to immediate fiscal issues.  He notes that immigration reform, long term tax reform, and national security issues will all likely have to be dealt with in this Congress.

The new year started with Chambliss working on the floor of the Senate.  It looks like he’ll have plenty to keep him busy for some time to come.


  1. IndyInjun says:

    History will record that, when the time came to reign in the Derivatives Reign of Error before his committee, Saxby ran away, plaintively explaining that a Derivative “can be a phone call ” on C-Span.

    When I worked in government and certainly in business since then, I could not get payment of a travel expense report without receipts, yet Saxby defended and preserved the opportunity for banking criminals to make claims for $10’s of millions in US government funds for derivatives that were unrecorded phone calls.

    I will be voting Democrat or Libertarian, should the “fiscal conservatives” in this state not find a primary challenger.


  2. Dave Bearse says:

    Chambliss in stating 10 year savings “must” be increased to $5T from the previous $4T exemplifies the new futililty in seeking compromise with the GOP. When there’s movement toward the GOP position, the GOP moves farther right.

    • Charlie says:

      That’s not a GOP position. That’s the numbers Simpson & Bowles were working under for a minimum amount of deficit reduction to avoid a downgrade in US credit rating. Because we’ve continued to pile up debt in the interim, the number has grown.

  3. elfiii says:

    @ Dave Bearse – “When there’s movement toward the GOP position, the GOP moves farther right.”

    Not far enough right to suit me.

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