Kleeb says move past old politics

By DON WALTON / Lincoln Journal Star

It's time to toss out the old-style political tactics of crafting talking points and exploiting wedge issues, Scott Kleeb says.

"I believe people recognize we've got to move past not just the policies, but the debates that have kept us handcuffed," the Democratic Senate nominee says.

"All that partisan division has gotten us nowhere," he says. "We're not dealing with any of this stuff.

"I hear both sides. And I want to work on these things."

This stuff, Kleeb says, is energy reform, health care reform, economic recovery, working family needs, education improvements and more.

Kleeb is sitting over a cup of late afternoon coffee at Starbucks in downtown Lincoln answering questions designed to pin down his differences with Republican nominee Mike Johanns on issues like tax policy.

Johanns supports permanent extension of the Bush administration's 2001 and 2003 tax cuts.

Kleeb appears prepared to be more selective in choosing which should be extended when nearly all of those tax reductions automatically expire in 2010.

"I want to retain elements that do benefit the middle class and small businesses," he said.

That includes retaining the income tax rate cuts for middle-income taxpayers, continuing the increased child tax credit benefits, and retaining repeal of the so-called "marriage penalty."

Kleeb says he supports legislation that would extend child tax credits to more families and apply "a one-year patch" to shield more than 20 million middle-class taxpayers from sliding into higher tax obligations mandated by the alternative minimum tax.

The AMT was designed to apply to higher-income taxpayers who had sheltered their wealth from tax obligations.

A one-year shield would provide more time to craft a long-term fix for the AMT challenge, Kleeb says.

Kleeb says he supports tax breaks that provide incentives for Nebraska businesses to invest in research and development.

"Tax cuts do spur investment," he says. "Tax cuts can be great engines of economic growth."

But, he says, he would deny tax incentives to businesses that shift U.S. jobs overseas.

As for retention of capital gains tax cuts, Kleeb says: "I believe anything that increases investment is good."

Kleeb appears inclined to support reform of the federal estate tax rather than its repeal.

Reforms generally call for increased exemptions and reduced tax rates that shield all but the wealthiest from the tax.

"I believe it needs to be reformed," Kleeb says. "I'm not sure at what level. I want to know the full impact.

"I support tax cuts that benefit 99 percent of Americans," Kleeb says. "I think we need to be more equitable."

In addition to supporting permanent enactment of the 2001 and 2003 tax cuts, Johanns has called for a permanent tax credit for research and development activities and "a permanent fix" for the AMT.

Kleeb says he wants to reinstate an internal curb on congressional spending.

"Congress has been irresponsible in its spending. I want to go back to 'paygo' requiring Congress to provide a way to pay for new spending."

The paygo rule requires any new spending or tax changes be shaped, or offset, in a manner that would not result in additional deficit spending.

Reach Don Walton at 473-7248 or at dwalton@journalstar.com.