The independent accounting firm Ernst and Young says going over part of the fiscal cliff and raising tax rates on the top two brackets will cost our economy more than 700,000 jobs.
Ernst and Young also confirms many of those hit with the rate increase will be small business owners the very people both parties acknowledge are the key to private sector job creation.
There is an alternative to going over the fiscal cliff, in whole or in part.
It involves making real changes to the financial structure of entitlement programs, and reforming our tax code to curb special-interest loopholes and deductions.
For purposes of forging a bipartisan agreement that begins to solve the problem, we’re willing to accept new revenue, under the right conditions.
What matters is where the increased revenue comes from, and what type of reform comes with it.
Does the increased revenue come from government taking a larger share of what the American people earn through higher tax rates?
Or does it come as the byproduct of a growing economy, energized by a simpler, cleaner, fairer tax code, with fewer loopholes, and lower rates for all?
The question we should be asking is not 'which taxes should I raise to get more revenue,' but rather: 'which reforms can we agree on that will get our economy moving again?'
There are two paths we can take to get the revenue the president seeks.
Feeding the growth of government through higher tax rates won’t help us solve the problem.
Feeding the growth of our economy through a better and cleaner tax code will.
The president has signaled a willingness to do tax reform with lower rates.
Republicans have signaled a willingness to accept new revenue if it comes from growth and reform.
Let's start the discussion there.