A Weekly e-Newsletter from
Senator Johnny Isakson (R-GA)

November 30, 2012

Dear Friends,

This week, the Senate worked on the Department of Defense Authorization bill after tabling the sportsmen’s bill, S.3525, on Monday.

Fiscal Cliff
If Congress and the president fail to address the “fiscal cliff” by Dec. 31, 2012, tax rates will increase to 15 percent on the bottom end and to 39.6 percent on the top end of the spectrum, the capital gains tax rate will rise from 15 percent to 20 percent, the estate tax will increase to 55 percent, the dividend tax rate will increase to the marginal rate of the taxpayer and the child tax and earned income credits will expire.

We are in a very dangerous position if we don’t act now. In Sept. 2008, we faced another kind of fiscal cliff and Congress failed to act quickly. Five years later, we are still recovering from the drop in the markets because of our slow response back then. If we don’t address the current fiscal cliff in this lame-duck session of Congress, we will put the nation in the same precarious position again.

I spoke to multiple news outlets this week, including CNBC’s “Squawk on the Street” on Tuesday, and to Stuart Varney on “Varney and Company” on Fox Business News on Wednesday.

I also contributed a column to the Atlanta Journal-Constitution regarding this issue. I have repeatedly pointed out that we all already agree that we must address this issue by tackling three things: spending, revenue and so-called entitlements.

In terms of spending, we should cut discretionary spending, but that alone will not solve our debt and deficit problem. Congress should return to a responsible budget and appropriations process focused on savings and accountability. As for defense spending, the consensus is that arbitrary cuts would be devastating to our defense. Instead, we should cut spending through a responsible, strategic approach.

When it comes to Medicare and Social Security, I don’t consider these programs to be “entitlements” because Americans have paid into them their entire working lives. That’s why we must take steps to preserve these programs for those who have paid into the system and for future generations as well. I propose extending the age of eligibility for Social Security for our children and grandchildren, just as President Reagan and House Speaker Tip O’Neill did in 1983. Medicare is a tougher issue, but converting from a fee-for-service program to premium support and means-testing is a first step.

As for the tax code, I do not favor raising tax rates. It would not be difficult to come up with a plan that lowers rates and raises revenues. For example, a possible solution could be means-tested deductions. The fiscal cliff could be averted by reducing tax rates and reforming the tax code in a comprehensive manner so that we would have a lower tax rate applied against a larger base, and that would produce revenue.

Jumping off the fiscal cliff is not an option. I’m ready to sit down at the table with anyone who is willing to find solutions. You sent me to Washington expecting no less. We need a game plan for the next decade to reduce our deficits and reduce our debt.

Sept. 11 Attacks in Benghazi, Libya
The administration as a whole has been less than candid about our security situation and exactly what happened surrounding the Sept. 11, 2012, attack on our diplomatic post in Benghazi, Libya, that resulted in the deaths of four Americans, including our Ambassador to Libya, Christopher Stevens.

I have pressed for additional information from the administration since it first became clear that Congress and the American people were not getting straight answers from them. I have sent three letters to Secretary of State Hillary Clinton and the U.S. State Department requesting all communication relevant to the security situation in Benghazi, including cables and e-mails. On Oct. 27, Sen. Corker and I called on President Obama to “come clean” and to order his administration to fully disclose all communications relevant to the security situation in Benghazi. Last week, I attended the Senate Foreign Relations Committee’s classified briefing on the matter.

On Wednesday, I appeared on CNN to discuss the Benghazi investigation and United Nations Ambassador Susan Rice’s involvement in this matter. As you remember, Ambassador Rice delivered the administration’s message when she appeared on the Sunday news talk programs following the attacks, but she never came back out to change the message once we knew she had not delivered the true facts on that day. Specifically, Ambassador Rice said that the Benghazi attacks were incited by a YouTube video, when in fact, we now know that the administration had intelligence at the time that the attack was a pre-meditated act of terror.

I hold President Obama and his administration accountable for Ambassador’s Rice’s statements on the Sunday talk shows. I have called on the president to come forward and tell us the facts: what we knew, when we knew it and why we weren’t prepared to protect our ambassador in a very important and dangerous part of the world. We must get answers because we cannot allow this to happen again. We must restore trust with our diplomats engaged around the world that we are committed to their safety.

In Other News
This week, I had the pleasure of talking to Mr. Jackson’s ninth grade class at Peach County High School via Skype on Thursday, as well as to WDDQ listeners in Valdosta as I joined Scott James’ program on Thursday morning. I also met with Sen. Chambliss and Georgia’s coastal-area leaders in Washington, to discuss the impact of federal legislation on their communities. It is critically important to continue a dialogue with local community leaders in order to best represent the state of Georgia in Washington, D.C.

On Saturday night, I will appear on “Geraldo at Large” on Fox News at 10 p.m. to discuss the Benghazi attacks, as well, so be sure to tune in.

What’s on Tap?        

Next week, the Senate is expected to wrap up the defense authorization bill.

Sincerely,
Johnny Isakson