Mark R. Warner

WASHINGTON - While Congress attempts to stave off the devastating across-the-board spending cuts known as sequestration, Republican Sen. Rand Paul says it wouldn't be such a bad idea if the sequester goes through.

"I think the sequester has to go through," Paul, R-Ky., told WTOP Thursday morning. "People need to realize the sequester is not really a cut in spending. It's a cut in the rate of growth of spending."

He adds that a new proposal by Senate Democrats to avoid sequestration with a mix of spending cuts and new tax revenue is a bad idea.

"Another dumb idea," said Paul, who on Tuesday delivered the tea party response to President Barack Obama's State of the Union address. "They just raised taxes three months ago. Did they not get enough of a fix then? We've got to cut spending."

In response, Virginia Sen. Mark Warner, D-Va., says allowing sequestration to take effect March 1 would be "a stupid way to cut."

"Sequestration was set up to be the stupidest way possible to cut," he told WTOP Thursday. "It cuts every component of government, regardless of whether the progam works or doesn't work."

As a result, the government will be breaking multiple contracts, he says.

"We're going to furlough government contractors one day a week. That's going to have a ripple effect across the whole capital region's economy," Warner said.

Paul maintains that any tax hike is a bad idea.

"The only real stimulus that ever works is leaving more money in the economy, which means lowering taxes," he said.

"Cutting the rate of growth of spending is absolutely a good idea. I don't think it will hurt the economy one bit," Paul added.

The sequester would drain $85 billion from the Pentagon and domestic programs, with the D.C. region feeling the pinch the hardest.

"The idea of 'plague every house,' it may be a good political soundbyte but it doesn't have any connection to anybody who's ever done a budget, run a business or knows how to operate an enterprise," Warner said.

He said he hopes the Democratic plan is successful, but if not, then cuts should be done in a less devastating manner.

"There is blame enough to go around for both parties. Democrats (have) got to be more willing to do entitlement reform. Republicans (have) got to be willing to do more revenues," said Warner.

"Even areas like defense need to be cut, but there's a smart way and a stupid way to cut them. We set up the most stupid way."

Last night Senator Warner joined more than 150 students and faculty from James Madison University via videoconference to take questions on issues ranging from the federal debt and looming sequestration crisis, to opportunities for tech entrepreneurs and young Americans.

On the budget crisis, Senator Warner continued to express his frustration with Congress’ intransigence.  He noted that even small progress towards reaching a bipartisan solution would signal to businesses that federal finances were on solid enough ground for them to continue hiring and investing.

“We don’t have to fix the debt issue overnight.  We just have to show that politicians are willing to take a significant first step,” said Senator Warner, “Lurching from one budget crisis to another, the way we have over the last few months, is devastating to the economy.”

“I really believe that our economy is poised to take off,” he continued. “What’s holding it back is whether government is going to continue having these crises, or whether we’re going to bite the bullet and put out a real plan.”

Senator Warner, a former entrepreneur and venture capitalist, also reflected on his own initially rocky start in business, and gave advice to those students in the audience poised to enter the workforce.

Senator Warner concluded by reminding his listeners to keep their heads up, despite all the negative talk surrounding the economy.

“If you turn on the news, you can get bummed out pretty quick – but I wouldn’t trade [America’s] hand with anyone.”

WASHINGTON, D.C. – U.S. Sen. Mark R. Warner (D-VA) today introduced Startup Act 3.0, an updated version of a bipartisan jobs and high-skilled immigration plan to strengthen the economic recovery through the creation and growth of new businesses. Co-sponsors of Startup Act 3.0 include Sens. Jerry Moran (R-KS), Chris Coons (D-DE) and Roy Blunt (R-MO). Startup 3.0 builds upon Startup 2.0, which was introduced in the last Congress.

Startup Act 3.0 creates both Entrepreneur Visas and STEM Visas for highly-educated and entrepreneurial immigrants to stay in the United States, where their talents and new ideas will fuel economic growth and create American jobs. The legislation also modifies the tax code to encourage investment in new businesses, helps to accelerate the commercialization of university research that can lead to new ventures, and seeks to improve the regulatory process by requiring a rigorous cost-benefit analysis of new proposed regulations.

“With a renewed focus on comprehensive immigration reform, it is imperative that we take commonsense steps to help Virginia and America compete and win in the global competition for talented innovators and entrepreneurs,” Sen. Warner said “Our bipartisan legislation also proposes reasonable steps to reform our tax and regulatory policies to help promote investment and job creation. In addition, Startup 3.0 looks to accelerate the transfer of university R&D into the marketplace.”

Research shows that for close to three decades, companies less than five years old have created almost all of the net new jobs in America – averaging about 3 million jobs each year.  Additionally, immigrants to the United States have a long history of creating businesses in America. Of the current Fortune 500 companies – including Apple, Google and eBay – more than 40 percent were founded by a first- or second-generation American. These American companies employ more than 10 million people. Both American and foreign-born entrepreneurs are needed to jumpstart the economy through the creation and growth of new businesses.

“I'm encouraged to see continued enthusiasm and momentum in Washington to support entrepreneurs,” said Steve Case, a cofounder and former CEO of Virginia-based AOL and a member of President Obama’s Council on Jobs and Competitiveness, said. “With the reintroduction of the bipartisan Startup Act, Senator Warner is demonstrating a real commitment to help the United States win the global battle for talent. By creating a new visa for foreign students with advanced STEM degrees and immigrant entrepreneurs, and by eliminating the per-country cap on employment-based visas, we will make it easier for the best and the brightest from across the globe to start businesses, innovate, and create jobs right here in the United States.”

“America has long been seen as the land of opportunity for innovators and entrepreneurs. I fear those days are coming to an end,” Sen. Moran said. “At a time when our economy needs jobs first and foremost, America’s archaic government policies have us falling behind. We are losing talent and jobs by the day to countries like Canada, Chile, and the United Kingdom that are aggressively courting the world’s best and brightest. We must pass Startup Act 3.0, or we risk losing the next generation of great entrepreneurs and the jobs they create to countries that have taken action to attract and better support these innovators.”

The provisions in Startup Act 3.0 have been endorsed by CEA, TechAmerica, Financial Services Forum, the National Small Business Association, Google, CONNECT, CTIA, Engine Advocacy, Computer and Communications Industry Association, the Greater Kansas City Chamber of Commerce, the Austin Chamber of Commerce, Angel Capital Association?, ITI, Northern Virginia Technology Council, Perceptive Software, Shenandoah Valley Technology Council, Silicon Valley Leadership Group?, Tampa Bay Technology Forum, TechNet, Virginia Chamber of Commerce and Wichita Chamber of Commerce.

Startup Act 3.0 includes the following provisions:

• Creates an Entrepreneur’s Visa for legal immigrants, so they can remain in the United States, launch businesses and create jobs;
• Creates a new STEM visa so that U.S.-educated foreign students, who graduate with a master’s or Ph.D. in science, technology, engineering or mathematics, can receive a green card and stay in this country where their talent and ideas can fuel growth and create American jobs;
• Eliminates the per-country caps for employment-based immigrant visas – which hinder U.S. employers from recruiting the top-tier talent they need to grow;
• Makes permanent the exemption of capital gains taxes on the sale of startup stock held for at least five years – so investors can provide financial stability at a critical juncture of firm growth;
• Creates a limited research and development tax credit for young startups less than five years old and with less than $5 million in annual receipts. This R&D credit is designed to allow startups to offset employee taxes – freeing up resources to help these young companies expand and create jobs;
• Uses existing federal R&D funding to support university initiatives designed to bring cutting-edge research to the marketplace more quickly where it can propel economic growth;
• Requires all government agencies to conduct a cost-benefit analysis of all proposed “significant rules” with an economic impact of $100 million or more. This new requirement will help determine the efficacy of regulations and their potential impact on the formation and growth of new businesses; and
• Directs the U.S. Department of Commerce to assess state and local policies that aid in the development of new businesses. Through the publication of reports on new business formation and the entrepreneurial environment, lawmakers will be better equipped to encourage entrepreneurship with the most successful policies.

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Ambar Pinto is a 19-year-old Fairfax resident, a student at Northern Virginia Community College, and an undocumented immigrant who was brought to America by her parents when she was 12. She was also Senator Warner's guest at last night's State of the Union speech.

Ambar – and Senator Warner – are advocates for the Dream Act and for comprehensive immigration reform. Senator Warner invited Ambar after reading about her struggles as an undocumented student in the Richmond Times-Dispatch. 

In the video below, Senator Warner and Ambar talk in Spanish about the need for immigration reform.

"Esta es la nueva cara de Virginia,” Senator Warner said. “Por lo tanto es importante que tengan nuestro apoyo y esperanza para un mejor mañana.”

WASHINGTON -- U.S. Sen. Mark R. Warner (D-VA) released the following statement tonight:

"I was pleased the President began his speech with a strong call for a bipartisan grand bargain to continue to address our deficits and debt.

A balanced plan that includes additional revenue, smarter spending cuts and responsible entitlement reform -- and avoids the self-inflcted wounds from sequester -- is a key component of any economic growth agenda.

The President also endorsed a proposal I unveiled last week to work to double our nation's energy productivity by 2030, and I look forward to helping to lead the effort to make smart investments to rebuild our nation's infrastructure.

We will have many opportunities in the weeks and months ahead to work together to strengthen the economic recovery and move our country forward."

“I’m proud to have cosponsored the Violence Against Women Act, which passed the Senate today on a strongly bipartisan vote of 78-22. In Virginia, this Act has doubled the resources available for prevention and intervention of sexual violence in communities and on campus. The funding provides vitally important crisis services in nearly every locality in Virginia, and I urge the House to act quickly in passing this bill so we can get it to the President’s desk for his signature.”

Senator Warner celebrated the beginning of "the year of the snake" on Sunday at the Eden Center in Falls Church.

The Senator watched the lion dance and an impressive fireworks display and participated in the flag ceremony. After the ceremony, he ducked into businesses in the Eden Center to greet business owners and shoppers, and handed out envelopes of "lucky money" to kids.

To see more of Senator Warner's Tet Celebration, watch the short video below.

Senator Warner stopped by the University of Virginia yesterday to speak to the "Up to Us" campaign about the deficit and debt. Up to Us is a student-led campaign to educate young people about the nation's fiscal issues.

"We have to stop seeing this as kind of the red-shirt Republicans and the blue-shirt Democrats and actually put the country first," Senator Warner said. "If not you should fire us all."

The Daily Progress's Ted Strong covered the event and recounted some of Senator Warner's more colorful anecdotes in his article:

U.S. Sen. Mark Warner, D-Virginia, asked the audience if they remembered the scene in the 1974 Mel Brooks spoof “Blazing Saddles,” in which the town’s new, black sheriff escapes a mob of unruly townspeople by taking himself hostage.

“That’s kind of what Congress does with sequestration,” he said.

Senator Warner spoke this morning with Rick Rumble of FM 99/WNOR Norfolk’s Rumble in the Morning about the looming sequestration cuts, which have already impacted thousands of Virginians in the Hampton Roads area and across the commonwealth.  Sen. Warner began by giving an example of just what makes the cuts both so devastating and so inefficient.

“Unlike a normal business, with the Navy… instead of buying one airplane you buy five airplanes, and you get the five airplane discount.  If we have to buy them one by one because we can’t honor these multi-purchase contracts, then in the name of cutting, we actually cost the taxpayer money.”

Sen. Warner emphasized that these across-the-board cuts would have a wide-ranging negative impact in many areas vital to American strength at home and abroad.

“It’s not just defense.  The National Institute of Health has funding for disease research, [including] times where you’ve got a five-year study.  Now you’ve done four years of the study, but you can’t issue the contracts for the fifth year because of the sequester cut… so you’ve got to flush the results of the first four years – that costs the taxpayer money.”

Of course the biggest and most immediate negative impact is for those whose jobs are directly connected to the industries facing cuts, many of which are defense-related.  Rick and Sen. Warner discussed how the uncertainty surrounding sequester cuts is already harming Hampton Roads residents, including those who had expected to deploy with the U.S.S. Truman before the sudden announcement last week that the carrier would remain in port.

“You’ve got people that go ahead and sell their car, or sublet their apartment [before finding out that they won’t deploy]… this has a dramatic, dramatic effect.”

Sen. Warner detailed his dogged efforts to blunt the harmful effects of sequester, including by presenting an alternative to across-the-board cuts by giving agencies more flexibility to decide where and when to cut.

“Plan A is still hoping for a rational approach that says, Republicans you have to put in more revenue, Democrats you’ve got to kick in some reforms to entitlement programs…let’s go back to a big bipartisan deal.”

“Plan B is, if we’re going to go through these cuts, let’s at least allow the Secretary of the Navy, or the Secretary of Health, to move money from one account to another so they can make some level of business judgment about which things need to be cut… [still keeping] the top-line number, but giving them some flexibility.”

Finally Sen. Warner expressed his frustration with the inability of Congress to find the common ground necessary to halt the sequester cuts. 

“This was set up to be so stupid that nobody in their right mind would allow it to happen.  I know people in Hampton Roads are scratching their heads, but I’m also up there scratching my head… Those of us who are trying to say’ ‘time out – let’s both sides give a little bit,’ we keep getting squeezed out because screamers on both sides tend to get more attention.”

“I’m hoping, I’m pushing, I’ve got an alternative plan out there… I know people are saying ‘Warner, you’re up there – why can’t you do more?” Well I keep working these bipartisan groups trying to get people to fall outside their team colors.  It’s harder than I thought it was going to be.”

Senator Warner ended on a note of cautious optimism.

“The economy is ready to come back – we just need to get rid of this uncertainty.”  

"The across-the-board sequestration cuts," Senator Warner said this morning to a group of Northern Virginia defense contractors and technology executives, "will be even worse than you imagine."

Senator Warner and Senator Tim Kaine outlined the impact of mandatory budget cuts scheduled to take effect on March 1st during a morning conversation with several hundred members of the Northern Virginia Technology Council in Reston. 

"Ensuring our country is safe should drive the budget," Senator Kaine said. "The budget shouldn't drive our national security."

Senator Warner continued on to Palio's Restaurant in Leesburg, where he took questions from about 100 women business leaders and entrepreneurs.

"I know this'll come as a huge shock to you all, but although its hard to get access to capital for anyone right now, it's especially difficult for women and minority-owned businesses," he said. The Senator also discussed his ongoing efforts on deficits and debt, and advocated for a big, broad and bipartisan solution.

"Our economy is poised to take-off and grow and create jobs and promote new investments, but this lingering challenge over fixing the debt is holding us back," he said.