Rigell discusses debt with billionaire Buffett in Omaha

Scott Rigell found himself in unusual company for a freshman congressman Monday: breakfasting in Omaha with billionaire investor Warren Buffett and discussing how to fix the country's debt crisis.

But perhaps even more unexpected was Rigell's announcement later that day that in his re-election campaign, he'll no longer stand by a pledge never to vote for a tax increase.

Rigell, a Republican from Virginia Beach, said after careful analysis he's come to the realization that some sort of revenue increase will be needed as part of federal budget reform, as well as cuts in spending, lowering of the national debt and reducing regulation to expand business and energy production.

"Everything should be on the table," he said.

Rigell made the comments not long after meeting with Buffett, who praised the congressman's gesture of returning a portion of his federal salary to help pay down the national debt. The two had corresponded recently after Buffett told Time magazine he would match any money Republican members of Congress personally paid to reduce the debt. Rigell, who is independently wealthy, already was donating 15 percent of his approximately $174,000 federal salary and contacted Buffett.

Buffett said Monday that elected leaders, Democrats and Republicans, have to compromise on the spending and revenue issues if they ever hope to solve the debt crisis.

"There has to be substantial give in both areas," he said. "The hard part is getting someone to give in first."

The no-tax pledge, promoted by Grover Norquist of the group Americans for Tax Reform, has been adopted by scores of state and national politicians.

Rigell said the root of his change of position is the assumption that the federal spending has historically amounted to about 19 percent of the country's gross domestic product. Today, it's more than 24 percent.

Compounding the problem, Rigell has said, is that the government is taking in only about 15 percent of GDP as revenue - the rest is added to the national debt.

Rigell said he's come to believe that even if the federal government's spending as a share of GDP is cut to 19 or 20 percent, new economic growth alone won't generate enough money to pay for necessary government services. Some kind of new revenue is needed.

"I'm finding it increasingly more difficult to reconcile with the ATR pledge," he said.

Rigell also acknowledged that he's finding more in common with U.S. Sen. Mark Warner of Virginia, a Democrat who has been spearheading an effort to adopt a broad budget plan that includes deep spending cuts, revamping entitlement programs and increasing revenues.

Warner came to Virginia Beach on Monday to stump for Rigell's opponent, Democrat Paul Hirschbiel.

Bill Bartel, 757-446-2398, bill.bartel@pilotonline.com