I'd give the Grand Debt Ceiling Deal one more shot. And then if this fair compromise for both parties doesn't work out, it should be on with a Clean Debt Ceiling Deal that will take you through 2013, and then moving on to bold job creation, which is what the country is shouting out for.
I would split the difference between the $800 billion and $1.2 trillion in tax revenues. And some of that $200 billion could even be the wise closing of additional tax loopholes, and also could be some other astute creative revenue raising measures that would also spur job creation.....such as raising foreign earnings repatriation tax with a somewhat discounted tax rate, and using only say 80% of these tax proceeds to fund clearly job creating initiatives like a Jobs Tax Credit, Green Commercial Building Retrofits, or US Infrastructure Projects, and the remainder for Deficit Reduction.
And in return, I would up the first-year 50% bonus tax depreciation for 2012 equipment purchases to first-year 100% tax expensing, which substantially increases Big Corp profits in 2012, and thus also increases stock prices. And if you wanted to also include some payroll count increase requirements for the really Big Corps, that would also spur substantial job creation, which also would feed into Big Corp profit increases in 2013 and beyond, with the resultant additional increases in stock prices, down the road.
It would be a huge win for both sides. But more importantly, it's a monumental win for the country.