MARIETTA - U.S. Sen. Johnny Isakson (R-Ga.) applauded Greenpeace, denounced investment bankers, said the Iraqi surge worked and called for a declaration of independence from foreign oil.

The east Cobb Republican made these remarks as the keynote speaker at the 30th anniversary celebration of the Marietta Metro Rotary Club at the Marietta Country Club on Friday evening.

Isakson said the U.S. knows how to reduce its dependence on foreign oil and its carbon footprint. Renewable sources of fuel such as cellulose-based ethanol and corn-based ethanol work, as do hybrid automobiles. He said the 19-million acre Arctic National Wildlife Refuge (ANWR), in the northeast corner of Alaska, has a significant reserve of petroleum that can be used, while gas reserves off the Gulf of Mexico are also available, not to mention nuclear energy.

The price of oil is not the only reason to turn to alternative energy sources.

"Most of the producers of most of the oil you and I pay for are not very good actors," he said, citing Iranian President Mahmoud Ahmadinejad, Russian Prime Minister Vladimir Putin and Venezuelan President Hugo Chávez as three prime offenders.

"Every time the United States of America can reduce our dependence on petroleum in those countries, we help ourselves in two ways. One, by reducing their power through using our dollars that we use for petroleum; and second, when we find alternative sources of energy we reduce our dependence on foreign oil, and we reduce our contribution to the carbon footprint," he said.

"It is time for a declaration of independence from foreign oil and time for us to invest in what we already know works and to make up our mind to do what America has always been able to do."

Isakson applauded Patrick Moore, co-founder of the environmental activist group, Greenpeace, for Moore's endorsement of nuclear energy.

"Forget about what your feelings on global warming are. Every time you reduce a carbon isotope in the atmosphere, that is good for the environment. So it is time for all of us who are pro-nuclear, which I happen to be, to welcome Greenpeace, who's now said, 'Yes, we recognize nuclear works.' … You know, our problems are too big for us to get on individual ideologies and have fights over one segment of the problem. The United States of America has the capability to solve this problem."

The surge

While there is no question mistakes have been made in the Iraq War, Isakson said President Bush's move increasing the number of American troops to Iraq, known as the surge, has been a success.

Iraqi troops are now replacing American troops in combat.

"It's time for us to see this through to the finish, and we are close. General Petraeus has done a magnificent job. The surge worked. We're bringing home five groups, battalion fighting groups, this year. We'll be back down to our pre-surge level. The Iraqis are now carrying out most of the combat related effort, not a defensive effort. Fourteen of the 18 provinces of Iraq are free; they are safe and they are not affected by the conflict. It is down to four provinces. And I hope that as a country we don't waste the sacrifice, the good will, and the hard work of a young generation of Americans who have fought to make sure that Iraq could be a free and effective democracy in the Middle East," he said.

Investment bankers

Isakson said the economy is suffering.

"Whether you define it as a recession, a depression or just a soft spot, there is no question we have some significant challenges," he said.

He applauded U.S. Treasury Secretary Henry Paulson for supporting for the sale of investment bank Bear Stearns to JP Morgan after Bears Stearns nearly crashed because of the sub prime mortgage crisis.

"I want to commend Secretary Paulson in what he did in terms of Bear Stearns/JP Morgan. There's been a lot of politicians who have criticized the Treasury for interceding and making that deal happen. They called it a quote unquote bailout. But in fact what I think they did is save us from a significant domino effect in terms of the investment bankers and United States of American."

The problem with the current recession, Isakson said, is not banking-driven.

"We have the best banking system in the world. We have transparency, we have accountability, and we have a system of government measuring liquidity of our banking system. What we do not have is an investment banking system that has any transparency or any accountability," he said.

Isakson said he is the last one to say there needs to be more regulation, but he does think it's time that Wall Street has transparency and accountability.

Tax cuts

Isakson committed to do everything he can to ensure that the tax cuts passed in 2001 and 2003 remain in place, tax cuts the Democrats are out to kill. If the Democrats kill Bush's tax cuts, imposing more taxes, less revenue will be raised, he said.

"Without exception, in every year in which the capital gains tax has been raised, the net revenue from the capital gain stax goes down," he said.

Why?

Because when there is a tax hike, people with mature investments with a substantial gain are not going to sell and expose themselves to the tax.

"The tax went down when Bush passed it in 2001. What people did is they took mature investments, liquidated them, paid a lower tax and then reinvested that money in an investment that went four years down the line, which is exactly what made the United States of America work, year after year, decade after decade, since the founding of this country," he said.

An example is in 2003 when the government allowed people to depreciate 50 percent of the cost of a capital purchase in the first year they made the purchase. Savannah-based jet builder Gulfstream Aerospace laid off 2,200 people and had only one order left at the end of 2003. Yet when bonus depreciation was passed, within six months the company had 48 orders and everybody laid off was hired back a year later, he said.

"Because businesses could write off in the first year half the purchase of the G5 (Gulf Stream V). Now which would you rather have: layoffs, non-productivity and a closing industry or more jobs, productivity and more people at work?" he asked.

Among those in the audience Friday was Cobb District Attorney Pat Head.

"One of the things I like about Johnny is he should have been a lawyer because he can give a wonderful closing argument in any case," Head remarked after the speech.

jgillooly@mdjonline.com

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