If nothing is done by the President and Congress,big tax increases and spending cuts will take effect January 1-the fiscal cliff.It would be a crash course in fiscal reform that could cause another US recession and disrupt the global economy.
We need to do a down payment and make a bridge to the Grand Bargain,according to David Walker,former Comptroller General of the United States during the Clinton and Bush administrations.We do need to broaden the tax rate and lower the top marginal rate to 25%.
The Grand Bargain would include comprehensive tax reform and entitlements reform.
Here's what we need:to avoid the fiscal cliff with a down payment for credibility.Think about limiting deductions for the wealthy to charitable contributions alone if you really need to.The administration and Republicans are not gonna agree on a Grand Bargain.That cannot be done in a lame duck,hurried fashion.
I'm concerned that the wings are starting to mobilise,the far left and far right.Ultimately,we've got to get debt to GDP down to reasonable levels and keep it there.
David M. Walker,61, is a CPA and was US Comptroller General from 1998-2008.From 2008-10,he was head of the Peter G. Peterson Foundation.In 2010,he founded the Comeback America Initiative to promote fiscal responsibility.
A frequent chat show guest,Mr.Walker is author of the bestselling book "Comeback America:Turning the Country Around and Restoring Fiscal Responsibility."
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