Hopeful prediction on the fiscal cliff

Here's an optimistic prediction

1. Raise Income Tax rates on those making more than $250,000 in taxable income
2. Eliminate or reduce Payroll Tax Holiday
3. Reduce defense spending
4. Reduce discretionary domestic spending (these last two in equal parts)
5. Raise the debt ceiling
6. Eliminate or reduce extended unemployment benefits
7. Agree on a framework for broader, longer term fiscal remedies which would include
• reduction on tax "spending" (special deductions or loopholes),
• further reduction on defense spending
• Medicare and Medicaid program cuts

Points 1-6 would deal with the tactical issues related to the expiration of the Bush era tax cuts and automatic sequestering.

Point 7 would be some loose agreement in principle to deal with the longer term fiscal issue.

If this is accomplished the economy will continue to grow albeit slowly in 2013.  Contrary to Speaker Boehner's ideas raising taxes on the wealthy in order to do lower the debt and fund some critical spending will create jobs.