By Matthew Bechard

Once described by President George W. Bush as a "leader who knows how to raise his sights and lower his voice," Rep. Roy Blunt (R-MO) has been active and ambitious in his relatively short time on Capitol Hill. Blunt was elected to the U.S. House of Representatives in 1997 with a background as a public servant, university president and administrator. He hit the ground running and was selected by his colleagues to serve as majority whip (the third highest job in the House) in only his third term.

As whip, Blunt heads a team of deputy and assistant whips that is charged with lining up the necessary votes to complete his party's agenda. He worked through the night to reach agreement on President Bush's $1.35 trillion tax cut, the largest in a generation. In addition, Blunt worked to pass five economic stimulus packages in 2002 and 2003 and is pressing for permanent repeal of the estate tax and marriage penalty.

Blunt serves on the House Permanent Select Committee on Intelligence, which is responsible for oversight of intelligence resources and activities. He is also on leave from the Committee on Energy and Commerce and the Committee on Financial Services.

Among his political accomplishments, Blunt was the principal sponsor of the Charitable Giving Act, legislation designed to allow Americans who do not itemize their tax returns to deduct a portion of their charitable contributions and provide incentives for individuals to make charitable contributions from their IRAs. Following the September 11 terrorist attacks, Blunt played a lead role on several critical pieces of legislation in reaction to the tragedy—including a financial safety net that kept the airlines flying, as well as measures to boost airline and airport security.

One of the leading Republicans in Congress, Blunt recently spoke with Portfolio about a number of issues including the current climate of American politics, future tax reform needs and the benefits of the recently passed REIT Improvement Act.

On Serving as Whip

When Blunt was selected by his peers to serve as House majority whip in only his third term, he received the honor earlier in his career than any member in the last seven decades. Blunt has a history of leadership roles, both in the political and academic arenas. He served as Missouri's chief election official for two presidential elections and was the first Republican secretary of state in more than 50 years.

However, it was his role as president of his alma matter, Southwest Baptist University, that Blunt says best prepared him for the challenges that come with being whip.

"As a university president I was constantly surrounded by people who cared deeply for the institution and were a lot smarter than I am. The same is true today," Blunt says. "As whip, I get to work with virtually every member of our conference on a daily basis. Each of them is an expert in such a wide range of policy areas, and each cares deeply about this institution. I learn so much from my colleagues and I am able to take what I've learned to the leadership table."

On the Political Climate

Blunt's status as majority whip was secured when the Republicans gained Congressional seats in the November election on the heels of President Bush's re-election. Despite one of the most heated presidential races and an apparent growing divide among the parties, Blunt says he hopes that going forward less attention will be given to partisanship and more focus will be put on those politicians who are working together across the aisle in Washington.

"It is certainly true that much has been written about the partisanship in Washington; what is sad is that very little has been written about the many things we do day-in and day-out on a bipartisan basis," Blunt says. "For example, I have worked across the aisle to author and pass through the House a comprehensive charitable giving bill that makes changes to the tax code to increase charitable giving. This bipartisan Congressional initiative was proposed by President Bush and co-sponsored by Rep. Harold Ford (D-TN)."

In addition, Blunt says Republicans and Democrats worked together on obtaining middle-class tax relief, in creating the Department of Homeland Security and reforming intelligence operations. Blunt meets regularly with Minority Whip Steny Hoyer (D-MD) and the two cosponsored a bill to authorize funding for Special Olympics that passed the House and Senate overwhelmingly.

"While it is important that we do not gloss over the differences between the two parties—because there are significant differences—it is equally important that we put those differences in context and realize that we do work together much more than ever reported by the media," Blunt says.

As for the relationship between the House and Senate, Blunt foresees that the increased margins in the Senate (from 51 to 55 Republican members) should enable Republicans to clear more legislation through the Senate than was possible in the 108th Congress.

"While we are certainly mindful that the Democrats still have the votes to filibuster important legislation, I think the voters have made it clear that they prefer progress over obstructionism, which is an incentive for both parties to work together," Blunt says.

On Key Issues

The areas where Blunt says he hopes to see that progress made during the next four years are tax reform, spending restraint, tort reform, expanding access to health care, pension reform, and energy legislation.

Another crucial challenge will be reforming the social security system. The president's bipartisan Social Security Reform Commission laid out three reform options, all of which included some form of personal accounts.

"Elected officials on both sides of the aisle and economists have agreed for some time now that the current social security system is incapable of meeting its obligations to America's seniors," Blunt says. "The establishment of personal accounts holds the best, and really, only promise to ensure the fiscal solvency of social security and to increase retirement benefits for seniors."

Enacting social security reform will not be an easy political task, but Blunt is no stranger to winning hard-fought battles. He says the work done on Medicare reform has been among his most challenging political accomplishments.

"Anytime you change an entitlement program it is going to be difficult. Medicare had largely been unchanged for 35 years, and we enacted the most significant reform and enhancement of the benefit ever considered by Congress," Blunt says. "As with any major proposal, members have differing opinions of how to deal with the issue. I think the Conference Committee did a good job of advancing market approaches—creating Health Savings Accounts, increasing health plan options for seniors, and bringing Medicare into the 21st century—and still delivering a product we could pass."

On Tax Reform

Taxes have long been a focus of Blunt's political career. As majority whip, he worked 29 hours straight to secure the votes to pass President Bush's tax cut. However, he says there is more work that needs to be done in terms of the fundamental tax reform.

"The president has announced that he is establishing a commission to provide Congress with some recommendations on how to proceed regarding fundamental tax reform," Blunt says. "While there are a number of proposals already on the table, the president has expressed a sentiment that many of us share. Namely, that while we reform and simplify the tax code, it is important to maintain some of the key incentives currently in place, such as the incentives for homeownership and charitable giving."

For 2005, Blunt says it is critical that Congress makes the repeal of the estate tax permanent and that they extend or make permanent the dividends and capital gains tax relief.

"These are specific areas of the code where individuals and businesses need a high degree of certainty as they prepare their estates and business plans," he says.

On REIT Improvements

Blunt was a member of the leadership team that helped pass the REIT Improvement Act provisions included in the American Jobs Creation Act passed in October 2004. These tax law changes enhance the REIT structure and make it a more efficient operating vehicle.

"The REIT provisions included the removal of the discriminatory barriers previously in place for foreign REIT investors. Beyond clearing the way for new investors, this change establishes a more level playing field between REITs and other securities," Blunt says. "In addition, the American Jobs Creation Act included a provision that would allow the imposition of monetary penalties for the violations of a REIT tax test, in lieu of the previous automatic revocation of REIT status. This is a reasonable change that provides increased flexibility for REITs and increased certainty for investors."