The following compromise on taxes, spending and revenues if agreed to by Republicans and the White House would prevent the country from going over the 'fiscal cliff' and give both sides a "win."
Adjust the present Bush tax cut rates as follows:
35 percent rate to 36.5 percent
33 percent rate to 34.5 percent
28 percent rate to 29 percent
Keep all other rates at present level.
Lower the tax rate on businesses with fewer than 100 employees to zero for 10 years on profits generated from operations in the U.S. Lower the rate to 5 percent for businesses with more than 100 employees on profits generated from operations in the U.S. This would create jobs, boost the economy and provide additional revenues.
Agree to the reform of Social Security/Medicare to ensure viability of programs for the next 50 years. Agree to limit the increase of the debt limit to $1.5 trillion. Agree to increase revenues to at least 19 percent of GDP and reduce spending to no more than 21 percent of GDP.
Increase the new debt limit by no more than $1.5 trillion.
To extend the Bush tax cuts intact, without agreements on reform of Social Security/Medicare and revenue enhancement would be worse than going over the fiscal cliff. Spending a trillion-plus more than existing revenues is simply fiscal insanity.