Many of us have compared our politicians to stubborn children. That’s just it! Why don’t we look at these negotiations as a bunch of 3rd graders at the cafeteria table trading their lunches? The Republican 3rd graders want to trim down but Democrats want everyone in the class to bring more food from home to share. Here are two trade scenarios that I believe would appease both sides just before lunch time is over.

Trade Scenario 1:

Republicans get:
Spending cuts worth $2.4 trillion
Corporate tax reduction

Democrats get:
Debt ceiling increase by $2.4 trillion
Marginal tax rate increases

So here’s the deal, lets lower the corporate tax rate with modest increases to the tax base to offset revenue loss. This would increase economic activity for businesses and promote prosperity. Republicans have been complaining about our corporate tax rates,highest in the world, for a long time and many Democrats including Obama agree. This works for both sides. Republicans can say overall taxes weren’t raised and jobs will be added because corporations will be relieved. Democrats can say they also support job growth but will show their base that they did get those rich fat cats and jet owners to share in sacrifice.

Trade Scenario 2:

Republicans get:
Spending cuts worth $1.2 trillion
Balanced Budget Amendment

Democrats get:
Debt ceiling increase by $2.4 trillion
Tax loopholes closed

This one is very simple. Democrats get some tax loopholes and get a 2 to 1 dollar debt increase to spending cut ratio. That would make liberals giddy because entitlements would not be touched. The Republicans aren’t crying foul though. They get a new amendment (which most of Americans want) that would otherwise be impossible to get plus NO NEW TAXES!

My 3rd grade self would be proud…

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