Letter to the President – THE AMERICAN PROSPERITY ACT of 2011
October 25, 2011
President of the United States
1600 Pennsylvania Avenue NW
Washington, DC 20500
Dear Mr. President:
I am writing you today to identify the root cause of our economic problems and to present a simple solution to get America back on the right track. I have found over my young career that often times the simplest solutions are best, but they are often overlooked.
I will get right to the point and then provide supporting evidence. The root cause of our stagnant economy is lack of business confidence in your administration. Confidence is intangible and hard to measure, but we all know this is a major factor in economies, the value of our currencies, etc. I like to think of your approval rating and Congress’ approval rating as a measure of the people’s confidence in the American government and currently both are at all-time lows. Your American Jobs Act is not going to restore confidence because you want to spend another $447 billion dollars and I know you claim that it will pay for itself, but when confidence is low another stimulus package is tough for the American people and the world to accept right now.
To solve this difficult problem we all face, bold action is required instead of the status quo. I am proposing a non-partisan solution that can restore confidence in you, congress, and our economy almost overnight. Corporations all over the world are conserving capital in record numbers, especially American companies. The Federal Reserve’s second quarter 2011 Flow of Funds Accounts of the United States suggests that there is roughly $2 trillion on the sidelines because confidence is weak. Far more than $447 billion dollars has the potential to be deployed if you simply restore business confidence.
To restore confidence in the American dream and small to large companies all over the U.S., I propose a simple solution. Create a two page bill called the American Prosperity Act. On page one remove corporate loopholes that allow companies like G.E. to pay no taxes. The second page should reduce the tax burden of all companies, large or small, by 25% until unemployment reduces below 5% at which time there can be an option to slowly bring taxes back to normal levels over a five year period.
A two page bill would “wow” the world instead of your current plan, which isn’t gaining traction from congress or the American people. Anyone could easily read a two page bill, including congress, and know exactly what they are getting. Two pages also does not leave room for earmarks. Keeping it simple, non-partisan, and short will send a message to the world like never before. Let us attack the root of the problem and get back on track immediately.
According to the U.S. Small Business Administration, small companies employ half of all private sector employees, generate 65% of net new jobs, and create more than half of the nonfarm private GDP. Since small firms represent 99.7% of all employer firms, according to the SBA, this is not a bill for Wall Street, but for Main Street small businesses. Give the small companies a break and make the large corporations pay their fair share.
I am a small business owner and a future U.S. president. In your Seventh Quarterly Report for the American Recovery and Reinvestment Act Of 2009 one can conclude that the cost per job created is as high as $278,000 per job. As a small business owner, for half of that amount I could have hired several people to help grow my business so I could continue to create more jobs. Government spending is slow and inefficient so let companies’ keep more of the profits so they can create jobs and innovate. There is no economy or jobs without small businesses.
As a small business owner one could potentially be paying a 35% corporate tax rate, 15% on dividends, plus any state and local taxes. Paying 50+% in taxes makes America unattractive to investors abroad and even to the companies made in America. Make America competitive again and lower tax rates for companies so we can hire and grow. When companies grow, the economy grows.
Many will argue that lowering tax rates for companies will do little for the economy directly. Debating that issue is not important because what we are really trying to do is restore confidence for businesses so they start investing their cash. Lowering taxes sends a message direct to each and every company that the government believes in and supports every organization, big or small, because without American companies there is no recovery.
Thank you for your time and consideration. I look forward to hearing from you!
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