Graham: Look for Deals on Energy, Tax Reform

CHARLESTON - Speaking to the Charleston Rotary Club, Sen. Lindsay Graham (R-S.C.) struck an optimistic note on several issues, most notably the possibility of congressional and White House deals on a new energy policy and on tax code reform.

"With the Bowles Simpson plan we have a way forward," Graham said. "It's a hybrid of the Fair Tax."

Graham said he thinks President Barack Obama and congressional Democrats could strike a deal on tax reform based around the plan that shrinks the tax code from six brackets to three and eliminates all deductions and subsidies except primary home mortgage interest and charitable giving.

He said the stalemate over the debt ceiling, the eventual compromise and subsequent credit downgrade has been a wake-up call for Washington.

"I'll give the president some advice, I don't know if he'll take it," Graham said. "Come to the middle, you might find a crowd there."

On energy Graham said new nuclear, offshore drilling, "clean coal", tidal, solar and wind power should all be included in a deal that would create American jobs by using American resources.

Graham said he was willing to work with the president and Democrats on issues.

He also spoke about the unfolding events in Libya and the wider Middle East. He said foreign aid to and military support of the Libyan rebels are investments that will pay dividends in the future. He said he also supported Obama sending more troops to Afghanistan, though he worries we are pulling out too soon.

Taking the long view, Graham said in 15 years our investments in the region, especially our support of the Egyptian revolution and helping the people of Afghanistan secure their own safety will result in a level of safety for America in the world that "is beyond our wildest dreams."

Graham also took pains to stress the importance of dredging Charleston's port to a depth of 50 feet in order to accommodate the larger ships that will be able to traverse the Panama Canal once upgrades to it are finished in 2014.

"If we don't Charleston will become a backwater port," he said.

However in a era where earmark has become a dirty word, Graham admits it is difficult to get the $175 million in federal funding needed to match the State Ports Authority's half of the cost.

Without an earmark, he said it will take congressional direction to make the project happen.

Graham linked the port project back to jobs and the economy, pointing out that one out of every six jobs in South Carolina is directly linked to the port.

"It is the economic engine of this state," Graham said.

Graham spread his criticism of the way Washington has worked, or failed to work to both parties and extended several olive branches to Democrats, noting several issues on which he agreed with Obama.

He also said explicitly that he does not consider Democrats as enemies.

"We have different philosophical views about some issues," he said. "My enemies are Al Queda and the Taliban."