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Chambliss talks about need to tackle deficit

Staff Photo: John Bohn U.S. Sen. Saxby Chambliss. left,  greets Gwinnett Chamber President Jim Maran, right, during the Gwinnett Chamber policy luncheon in Duluth Wednesday.

Staff Photo: John Bohn U.S. Sen. Saxby Chambliss. left, greets Gwinnett Chamber President Jim Maran, right, during the Gwinnett Chamber policy luncheon in Duluth Wednesday.

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Staff Photo: John Bohn U.S. Sen. Saxby Chambliss addresses the Gwinnett Chamber policy luncheon in Duluth on Wednesday.

DULUTH -- Even on the day he received another Spirit of Enterprise award from the U.S. Chamber of Commerce, U.S. Sen. Saxby Chambliss admitted he has been blasted by conservative radio hosts for "wanting to raise taxes."

But the Republican told business leaders Wednesday his Gang of Six sees a balance in government spending and increasing revenues as the best way to solve the nation's fiscal issues.

"I never want to raise taxes," he said at a Gwinnett Chamber of Commerce luncheon. "What I want to do is invigorate the economy."

Taking lessons from the Bowles-Simpson commission, the Gang of Six leadership group has proposed cutting out exemptions to the corporate tax rate, while at the same time lowering the rate. The additional revenue, estimated at $1.2 trillion, should be divided between lowering the federal debt and lowering the rate, he said.

"The consequences of doing nothing are we are going to be the first generation of Americans to leave this country worse than when we got here," Chambliss said, after listing a number of government issues set to expire or come on line by the end of the year, including the expiration of the Bush tax cuts and a trigger that could gut government spending across the board, leading to deep cuts to the Department of Defense. "I promise Sen. Isakson and I aren't going to let that happen on our watch."

Jim Maran, president and CEO of the business group, said Chambliss's ideas about changing the tax rate are OK with him.

"If we don't address the deficit, our ability to be a great leader is gone," Maran said. "He's approaching it from a common-sense viewpoint. We've got to pay it down, so there is going to have to be some give and take on both sides, a deficit reducation and a slight revenue increase."

Chambliss said the debt ceiling issue will be the first question for the president inaugurated in January.

"The situation is very dire, and if we don't get our financial house in order, we are going to be the next Greece," he said.

Comments

CD 2 years, 1 month ago

Here's the truth about EFFECTIVE tax rates for corporations: average effective rate as of 2010 is 12%. Average EFFECTIVE rate at the end of Reagan's term: 26%.

But yet during the time since Reagan left office, offshoring has increased exponentially despite a drastic reduction in effective tax rates achieved through excessive, lobbied loopholes and deductions. It seems to me that the driving factor in offshoring is merely additional, outsize profits. As a shareholder, I do appreciate a dividend, but I also appreciate employers that hire Americans, pay a decent wage, and thus allow employees to be healthy, productive TAXPAYERS (personal, social security, etc.) that spend their earnings with other AMERICAN corporations buying their products and services thus avoiding the welfare dole which other TAXPAYERS pay for.

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teelee 2 years, 1 month ago

The US tax rate is 35%, highest in the world. You can't blame a corporation for taking advantage of tax breaks, it is smart business. Businesses leave not only because of tax rates but because of absurd EPA regulations, ADA, FMLA, unions, fuel costs and so on. The Liberals are destroying the entire country the way they have the state of California.

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Cleanupguy 2 years, 1 month ago

I can blame them for paying zero by having a mailbox offshore. Did you catch the recent proposal to reduce the tax burden of companies relocating back to the US by 20% while imposing a tax on those leaving? Proposed by Obama, shot down by the GOP. Yup, lousy liberals, keeping the economy alive and cleaning up after Dubyah.

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dentaldawg83 2 years, 1 month ago

blame them all you want...this is how business is done worldwide and our "leadership" knows this already. by the way..the subprime debacle was Clinton...

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SuxBeanU 2 years, 1 month ago

saxby, don't think for a minute that you are part of the solution because you aren't, you are part of the PROBLEM!! saxby,, when this "recess' is over please don't go back to Washington, just go back home. as the old saying goes" don't go away mad, just go away". you and those of your ilk aren't needed in Washington stay home and get a job as a greater at your local walmart, because you are no legitimate lawmaker,

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NorcrossDot 2 years, 1 month ago

Agree, he's one of the "Good Ole Boys" in the Republican party that we need to get rid of quickly.

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dentaldawg83 2 years, 1 month ago

Saxby is one worthless senator...part of the disease, not the cure.

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teelee 2 years, 1 month ago

His voting record isn't bad, Johnny Isakson is the traitor that voted along with Obama's plan to reduce our nuclear arsenal back on December 22nd 2010. Can you tell me what kind of missile defense Russia has? Numbers win wars!

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Cleanupguy 2 years, 1 month ago

Exactly who wins a nuke war? Nobody - everyone loses. That sort of stupidity is beneath contempt. Anyway, "Gang of Six" budget cutting Saxby insisted upon keeping Lockheed cranking out aircraft that the DOD refused and zero branches of the military wanted. By your definition he's a liberal - lying while spending on useless projects to buy himself votes. Not bad you say?

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JHogan 2 years, 1 month ago

"Chambliss said the debt ceiling issue will be the first question for the president inaugurated in January.

"The situation is very dire, and if we don't get our financial house in order, we are going to be the next Greece," he said."

The reason Greece is in financial straits is because they gave up their own monetary sovereignty when they joined the European Union (EU). What that means is that someone besides themselves is going to decide what currency the Greeks repay their debts in.

The United States is still a "monetarily sovereign" country. Nothing like Greece is going to happen here, ever! We can create our own money; Greece can't. It's really pretty simple: Greece is a "user" of currency, while the US is an "Issuer" of currency.

We have already seen how "strong" the Greek government is against the financial powers that rule Europe. People are jumping out of windows, 200' above ground because the situation is hopeless.

The United States is nowhere near that sitution, and to suggest otherwise is sheer fear-mongering.

If the media in the US would do its job and faithfully report how various schools of economic thought have fared in both the prognostication, diagnosis and proposed remedy for the present economic situation, the country would be much better off.

We have seen the predctions and remedies proposed by the "Chicage School" of economics (the "real business cycle"). Fell flat on their faces.

We have seen the predictions and remedies of the ""new Keynesians" proffered, but never taken very seriously.

We have seen the "Austrians" put forth their recommendations, most of which coincided with the RBC group. None of these schools of thought have worked,which include the DSGE (dynamic stochastic general equilibrium) model and "neo-classicism.". That is because not a single one of them actually understand how the economic system actually works.

It is the advcates of "Modern Monetary Theory" and "Monetary Sovereignty" who correctly called every move in the markets. They were right about interest rates--they said they would go lower, when everyone else said they'd go higher; they said that there would be no "crowding ou", and there was none, among other issues.

This could go on for quite a while, but then that's why we have journalists. Please do you job.

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