GOP Senate candidate David Perdue's talk of the "reality" of federal revenue increase earned swift criticism from his Republican rivals. One of them, Karen Handel, also faced a tricky question on the topic with the same audience.
Speaking to the Macon Telegraph editorial board (you can find the audio near the 49 minute mark) she parlayed a question about reining in entitlements a broader talk about the nation's deficit. Here's the exchange:
Questioner: "So if you had more people paying taxes at all, then you would have more to spend."
Handel: "I don't think it's quote the issue of quote more spending. You've got to go at it from both sides. The more people who are working, the more you can pull them off the rolls."
Questioner: "You're arguing you can even things up somewhat by getting a revenue increase ..."
Handel: "I think you have to do both. ... I'm not saying that. I'm saying you have to do both. You've got to come at it from both sides. You're not going to be able to just cut our way. I mean, think about it, we are deficit spending year-on-year-on year with a $17 trillion debt. If all we do is just cut over here, without also doing this on the economic side, and the growth side, you're not going to be able to get there."
Handel's campaign said her statements show a starkly different take on how to increase federal revenue than Perdue, considered the front-runner in Tuesday's GOP primary. Handel campaign manager Corry Bliss said her answers reflected her support of the Fair Tax, which she believes would grow the economy.
Said Bliss:
"Karen's comments regarding growth were obviously about growing the economy by rewriting the tax code and lessening the burden of regulations ... David Perdue had an opportunity to make his position clear. He did not, and instead laughed. Most conservatives do not view the idea of raising taxes as a laughing matter."
Handel and other GOP contenders for the open Senate seat quickly criticized Perdue's remarks after the AJC posted them earlier this week. In his question-and-answer session, the former Fortune 500 executive said lawmakers can reduce the deficit by curbing spending and increasing revenue.
When asked whether that was a "euphemism for some kind of tax increase," Perdue chuckled before saying: "I was never able to turn around a company just by cutting spending. You had to figure out a way to get revenue growing."
He later said that one way to do so was reducing regulations and lowering taxes.
All this talk of slashing the deficit by doing more than cutting expenses, is not so controversial on the national stage. It goes back to a commonly held theory among conservatives that increasing federal revenue by growing the economy and scaling back tax breaks could pave the way to a broader reduction in tax rates.
Sen. Saxby Chambliss, the man whose retirement is sparking this wide-open race, published a detailed policy paper this month arguing just that. He said the only way to cut the deficit is through a mixture of entitlement cuts and revenue increases. He would achieve the latter by closing tax loopholes, which would increase revenues and decrease tax rates.
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