Posted: 8:19 pm Tuesday, May 13th, 2014

David Perdue and the ‘reality’ of increasing federal revenue 

By Greg Bluestein

An interesting interaction played about between Senate candidate David Perdue and the Macon Telegraph’s editorial board this week where the Republican seemed to do what few GOPers dare: hint at support for a tax increase.

Perdue, in Macon as part of a statewide tour, sat down with the Telegraph’s editorial board for more than an hour. Their wide-ranging discussion included this snippet on the nation’s deficit, which you can find near the 49-minute mark.021914 senate debate kdj09

A Telegraph editorial board member asked Perdue whether it would be better to get out of the economic “ditch” by curbing the growth of spending or increasing revenue.

“Both,” Perdue quickly answered.

The questioner then declared, “And that’s a euphemism for some kind of tax increase, of course.”

Perdue responded with a chuckle, and then answered thusly:

“Well here’s the reality: If you go into a business, and I keep coming back to my background, it’s how I know how to relate is to refer back to it — I was never able to turn around a company just by cutting spending. You had to figure out a way to get revenue growing. And what I just said, there are five people in the U.S. Senate who understand what I just said. You know revenue is not something they think about.”

The campaign of Perdue, a former Fortune 500 executive who is running on his business experience, pointed out that he signed a pledge not to raise taxes. Perdue spokesman Derrick Dickey said he was talking about growing the economy in general. Said Dickey:

“David was stating a simple economic principle: If the economy is growing and more people were working, it generates more revenue. Tax increases hinder economic growth and destroy jobs. David wants to get government off our backs and our economy back on track.”

Interestingly, the man Perdue is seeking to replace has made similar suggestions about raising revenue. Sen. Saxby Chambliss, a member of the bipartisan Gang of Six that tried to broker a comprehensive debt-reducing deal, noted in a policy paper this month that a tax code riddled with lucrative breaks is at the center of the nation’s fiscal ills. Wrote Chambliss:

“Now, no one is suggesting we remove all expenditures, but the point is illustrative: you don’t have to raise rates to raise revenue. Even if we preserve, in some capacity, expenditures like the Earned Income Tax Credit (EITC), child tax credit, and modified deductions for mortgage interest of first homes, charitable giving, and healthcare, we can lower rates and generate more revenue.”

42 comments
FRANKFULLWOOD
FRANKFULLWOOD

Lord" aren't there any honest people left that will run for an office that will do the right thing instead of following the leader's in Congress or the Senate,that will ask God to lead them in the right path to take instead of the path they want to take--God lead and guide if they would just ask--we need God back in America and in Washington

DavidFarrar
DavidFarrar

I don't think Perdue is supported by his fiscal conservative base. 


ex animo

davidfarrar

hamiltonAZ
hamiltonAZ

The decision for pragmatists - and they will all vote in the Republican primary - is whether to hope Perdue is simply campaigning to the primary and will be a thoughtful Senator or to vote for the others back in the clown car so Nunn can win.


It's impossible to handicap this race, but Perdue/Nunn is probably Perdue and Nunn/anybody else is only possibly Nunn.

SamTheSham
SamTheSham

David Perdue.....The Outsourcer.  China thanks you for all of the manufacturing jobs they received from American workers, and American workers appreciate your efforts in lowering their taxes due to their significantly decreased income after losing their jobs.  Shame.

Bill OrvisWhite
Bill OrvisWhite

...and Mr. Perdue will hopefully lose. Dr. Broun WILL lower tax rate$ thus creating job$ which will benefit WE THE PEOPLE (those with common sense/Tea Party Republicans). History shows that if one cut$ taxe$, that money will flow back into the private sector. Folks, we do not need RINOs like Senator Shameless getting into office thus raising our taxe$ and stifling economic growth. Gov't should only be about protecting our freedoms and life. Gov't should never be about providing education, recreation and health care. Dr. Broun knows these facts and that is what makes Him the only viable candidate to produce a landslide against Sam's daughter. Amen, Bill 

Chickencatcher
Chickencatcher

The supporters of the 'tax cuts increase revenues' idiocy have never realized the  logical consequence of their proposal:  

If cutting taxes raises government revenues then cutting the tax rate to zero would generate an infinite amount of government revenue.


The fact that they advocate their position without considering this simple mathematical fact shows just how ignorant they are.*  But why would one expect anything else from a Republican candidate pandering to the base.


*I use the term 'ignorant' in its archaic sense:  one who ignores.

Joeleejohnson
Joeleejohnson

They ain't never been a government yet that had enough money---And there never will be!

Tincup
Tincup

You can stick your head in the sand and think your arse doesn't show, but the economic reality is that tax revenues as a percentage of GDP are at a 60 year low thanks to the Bush tax cuts and the myoptic approach to governance inspired by the Grover Norquist tax pledge.  The enormous Bush tax cuts and the Ten Year unfunded war plus the Prescription Drug Bill and the Great Recession demand a more balanced approach.  Tax cuts along won't feed the dog and those who say otherwise are just blowing Tea Party smoke up the gazoo.

MaryPolleys
MaryPolleys

I listened to this entire 1 hour and 3 minute interview. He did NOT say or imply that he would agree to raise taxes. It was all about increasing revenue by getting the economy going and repatriating the profits that are off-shore because of our too-high taxes, about the opportunities that exist for the USA because of what is going on in India and China, about the stalled economy because of Dodd-Frank and Obamacare and the ridiculous spending on the over 300 redundant agencies. It was about the economy-killing regulations, and he does not speak in platitudes; he discusses them specifically.  This man is no politician. He is a brilliant problem-solver.  It is a total LIE that Perdue agreed to or even hinted or implied that he might agree to raise taxes.  I am SO glad I had time to listen.  This election is important enough for every voter to listen to this entire interview and hear him for yourself. This is the most highly qualified candidate I can even imagine having the opportunity to vote for.  Shame on any blogger, columnist, or partisan politico who tries to twist the meaning of what this candidate said!    I challenge you all to listen to the whole thing! 

Baumer_1
Baumer_1

Despite the repeated mantra of tax increases killing jobs and economic growth, the empirical record tell a different story.

Most of the different types of taxes levied throughout the US are too far removed to effect either employment or economic growth.

In the real world, taxation is a very peripheral concern. Labor costs and private infrastructure improvements are far more costly to businesses than taxes and regulatory compliance. You are mismanaging your company if this does not hold true in your case.

Jke
Jke

If elected it will be interesting to see how being the biggest guy in the room (CEO) translates into being a junior and freshman senator. Particularly in a body of 100 where, by his estimate, there are only 4 other people who are maybe as smart as him and most of them equally egotistic.

The_Centrist
The_Centrist

As usual, this blog purposely makes an improper inference to match its desires.  Perdue was talking about growing the economy resulting in increased revenues, not the Democrats' habitual call for tax increases

NWGAL
NWGAL

Why commit suicide by advocating tax increases when you are ahead in the polls? He must not really want to be elected.

Starik
Starik

What's this foolishness with the Telegraph's editorial board?  You mean they actually still endorse candidates, like a real newspaper?

CherokeeCounty
CherokeeCounty

Bill Clinton raised taxes - a little - and we had several years of economic growth.

George Bush cut taxes, and the result was disastrous.

Maybe putting a businessman in office isn't such a bad idea - he likely has at least a minimal understanding of economics - unlike his Seven Dwarf competitors.

(with props to honested for the 'seven dwarves" moniker...)

DS
DS

"I was never able to turn around a company just by cutting spending. You had to figure out a way to get revenue growing. And what I just said, there are five people in the U.S. Senate who understand what I just said." --- David Perdue

Wow, Perdue acts like he's describing Einstein's theory of relativity or something. Does he really think everyone else is so dumb?

honested
honested

@hamiltonAZ  

Broun in May

Nunn in November

The only way the People of Georgia Win

DontTread
DontTread

@SamTheSham  Maybe China should be thanking Bill Clinton for pushing that "most favored nation" treaty back in the 90s.  I'd love to have the ROI they got for their $6 million.

DS
DS

@Bill, tax cuts favor the wealthy disproportionately. The poor and middle class, whose demand for goods and services drives our economy, don't get a big lift from tax cuts.

If you want to really get the economy growing, you need to find ways to generate more income for the larger part of our population. With more money in their pockets, they will start spending more, and our economy will gain momentum. Everyone would benefit.

Chickencatcher
Chickencatcher

@Bill OrvisWhite  

The supporters of the 'tax cuts increase revenues' idiocy have never realized the  logical consequence of their proposal:  

If cutting taxes raises government revenues then cutting the tax rate to zero would generate an infinite amount of government revenue.

honested
honested

@Bill OrvisWhite  

So genius, what huge benefits will tax cuts provide to you?

The only place where Federal revenues are stifling economic growth is in the Military Industrial Complex.

honested
honested

@Chickencatcher  

Which helps to explain the wrong-wing full court push against Piketty.

I guess they never realized it would eventually be really easy to compare statistics of revenue, budgets and resulting prosperity, only that blind faith in failed ideology would be necessary.

honested
honested

@MaryPolleys  

That he would refuse to raise revenues to adequate levels demonstrates yet another reason this corporate butterfly has no business whatsoever being anywhere near the levers of governance.

Those who refuse to acknowledge the damage wrought by foolish and unwarranted tax cuts coupled with refusal to even notice the additional damage accumulating day by day prove that Public Service is a concept they don't comprehend.

CuriousPrime
CuriousPrime

@MaryPolleys  Please tell us how Perdue explained that a governor could change federal tax laws, stop Wall Street cheaters who wrecked the economy, set a new national healthcare policy, or  eliminate all those redundant federal agencies that have sprung back up since Reagan, Bush I and Bush II got rid of them?

DS
DS

@MaryPolleys  I listened to the whole thing too, and Perdue never challenged or corrected the interviewer's statement that "revenue increase" is a euphemism for tax increases. He just didn't. 

Sorry that's awkward, and that his spokesperson had to come back later to explain what he really meant, but that just tells me that Perdue should make a better effort at communicating clearly.

I thought that was a problem for Perdue throughout this interview. He would be asked a question, and he would go on and on with his answer without really answering the question, ending up talking about how womens' athletic shoes are designed or something. And because they were running out of time, the interviewers would just move on to the next question.

blah blah blah
blah blah blah

@Kamchak  Sure tax cuts work but when Obama and the Dems took it too far it turned into BAD economics.   

CuriousPrime
CuriousPrime

@The_Centrist  If you increase revenues by growing the economy, but cut taxes on the increased revenues, how do you increase revenues?  Ask Brownback in KS and Christy in NJ how that concept is working.

honested
honested

@The_Centrist  

Ok, so howsabout we just return to rates of taxation that we have half a century of proof that WORK for America.

DS
DS

@The_Centrist, no, the interviewer described revenue increases as tax increases, and Perdue did not correct him. Instead, he went on about how revenue increases are necessary (apparently affirming the interviewer's comment) and how only five Senators understand this concept.

It was Perdue's spokesperson who tried to spin Perdue's remarks after the fact.

There were no improper inferences. Perdue said what he said. That's why this is news.

Or are you saying we should ignore anything Perdue says and wait for his handlers to explain what he meant?

Auhderrr
Auhderrr

@The_Centrist  ok this is just me being crazy, but according to the Congressional Budget Office, federal tax revenue will hit $2.7 trillion in 2013, the highest number ever. Maybe we just need a few cuts? We are already collecting so much. 

SamTheSham
SamTheSham

@CherokeeCounty  to equate these tax changes with the subsequent economic conditions is beyond naive.  Clinton's economy could have resulted (more correctly) from the economic policies of the previous 12 years, and the 2008 economic downturn can very easily be explained by the ridiculous home buyers laws (Dodd/Frank omni-ownership) and the outsourcing of American production jobs by corporate masters like Perdue.  

Be careful when assigning cause and effect based on tax changes alone.

Auhderrr
Auhderrr

@CherokeeCounty  Could it be that when Clinton was elected the US was experiencing the huge troop reductions and when Bush was POTUS 9/11 occurred causing a huge increase in defense spending?  

Ohhhh I know Perdue want's to cut US Troop strength!

Mr_B
Mr_B

@DS  You have to remember that at this point, he's campaigning to Republican voters; so yeah, he probably has a very realistic view of his audience.

DewieCheatem_n_Howe
DewieCheatem_n_Howe

@DontTread

It was a lot more than $6 million but a huge ROI nonetheless. China figured out our political system a long time ago. They bought both sides. 

CherokeeCounty
CherokeeCounty

Sure that had an effect, but the 'huge increase in defense spending" - two wars,, as well as the Medicare expansion, wasn't paid for.  For the first time in history we cut taxes while going to war.

Trackbacks

  1. […] As reported by The AJC’s Jim Galloway, a Telegraph board member asked Perdue whether it would be better to get out of the economic “ditch” by cutting spending or increasing revenue. […]

  2. […] Republican Georgia Senate candidate David Perdue called tax increases an unavoidable “reality,” explaining to the table of […]

  3. […] And so it is ironic that the final hours of the GOP race to replace Chambliss should focus on one candidate’s attempt to extend that delicate discussion. From our Tuesday post, here are comments that businessman David Perdue made during a meeting with Macon Telegraph editors: […]

  4. […] Earlier this week, a recording once again surfaced of Perdue making statements that aren’t outrageous on their face, but suggest some openness to enhancing government revenue. […]

  5. […] Perdue’s 2d mistake, dedicated within a final days of a campaign, used to be a principal impiety in as of late’s Republican party: he seemed to warn he would make stronger taxation hikes. […]