A conversation with Rep. Scott Rigell

Excerpts from The Daily Press Editorial Board meeting with Rep. Rigell

Daily Press: What is your level of confidence in the new congressional super committee?

Rigell: I have a reasonable expectation that this group will come forward with something at least seven of its 12 members can agree upon and bring to a floor vote…I’ll reserve judgment until I see the final legislation.

Daily Press: If their solution is a 90 percent ratio of spending cuts to a 10 percent ratio of increased tax revenue, could you support that?

Rigell: I won’t vote for an increase in the marginal tax rate without a simplification of the tax code, and without elimination of subsidies or special treatments. If 10 percent of the revenue increases comes from eliminating subsidies or unfair treatments where industries are picked as winners, and it had [corresponding] tax simplification- I’d come down in favor of that.

I believe government should not favor one industry over another. I’ve had both sides of the issue in my office – oil industry executives and groups formed to call for elimination of oil subsidies. There are seven different ways oil companies are taxed. Three represent subsidies. I’m in favor of eliminating those.

Daily Press: Should Congress come back to work to fix the economy?

Rigell: Yes. I have spoken to the Speaker about this early this morning. Our being in recess at this time is in conflict with the American work ethic. Perception among Americans is that Congress isn’t working. In fairness, I’ve worked as hard this week as any week in my life. It’s Important to hear the wisdom of those in my district. But our calendar needs to reflect the challenges and priorities of the nation and I think we should be in session right now.

Daily Press: We were told if the compromise debt ceiling bill passed, we’d avoid a ratings downgrade. What went wrong?

Rigell: My background is I’m a businessman. The same financial business principles apply to the U.S. I never said voting for the compromise legislation would ensure our triple AAA credit rating….I always knew we did not cut enough spending to completely ward off a downgrade.

It was a sad day when S&P downgraded us — but it could be a blessing in disguise that it will wake people up. No longer can we live in the bubble that says the U.S. is immune from this… It shows a deep misunderstanding of economics. Although it resulted in market turbulence, it’s a warning to the greatest nation on earth that we are not immune to the laws of finance that apply to every nation and every business. This was a warning we are approaching the limits of lenders.

Daily Press: So do you favor increasing revenue, controlling entitlements, or reducing defense spending?

Rigell: Historically, the tax code has produced 18 percent of the 19 percent of GDP we spend. Now we spend 24 percent of GDP, and we are only collecting 15 percent of it in tax revenue. We’re challenged on both sides of the ledger- revenue and expenses. My record is clear – I voted for the path to prosperity: cut, cap and balance, and my votes represent reform of entitlements (Medicare).

On the tax side – our current tax code will produce 18 percent in revenue only when the economy is humming. We are in a deep recession. Even my own company (car dealerships in greater Virginia Beach) doesn’t pay the taxes we used to. The best way to get taxes up is to grow the economy: with pro growth, pro entrepreneurial and pro energy independence plans.

Regulatory bodies are trying to choke the life out of entrepreneurs. We need to grow our way out of this.

Daily Press: Are military benefits, like TRICARE, on the table?

Rigell: I was raised by an Iwo Jima veteran, Ike Rigell. He taught me one very clear principle: If I pledged something, I’ll honor it…we made this commitment and we need to honor it. So for current retirees – the answer is no. Veteran benefits are not on the table.

Daily Press: What about other entitlements?

Rigell: Those who are on Medicare now rely on that and we should honor that. Whether you agree with Republican plans or not, we have forwarded two plans for entitlement reform. That’s bold leadership.

Where is the president’s plan? Where is the Democrat plan? Nothing happens in the senate. This is unprecedented. The senate hasn’t passed a budget in over 800 days. This allows the president to take a condescending tone without having to veto or sign legislation. He just says we need to eat our vegetables and then goes on vacation.