The Fiscal Cliff:What We Need Now

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."

Big Projects,Long Lead Times

Exxon Mobil's(XOM) investment levels have grown from year to year,CEO Rex Tillerson noted,but when resources are ready to be developed,new technologies are often required.In consequence,a very large and complex project may be delayed for 10 years before Exxon invests in it.Exxon's shareholders have been paid ever-growing dividends,and have benefited from over 118 billion dollars U.S. in share repurchases over the past several years.Exxon's income taxes have increased at a faster rate than its profits.It paid an effective tax rate of 44% in 2007.Shareholders will be hurt by new taxes,and ultimately the consumers will have less energy resources because of them.Taxes are part of the economic analysis of whether you can take a risk and invest.Much of the technology lets Exxon manage the risk of the resource and the care of the environment.Exxon is a huge consumer of commodities itself,but it is built to be the most efficient,regardless of the economic conditions that swirl around Exxon,Mr.Tillerson observed.