The Daily Hatch

An open letter to President Obama (Part 48 of my response to State of Union Speech 1-24-12)

Rep Michael Burgess response

Uploaded by MichaelCBurgessMD on Jan 25, 2012

President Obama’s state of the union speech Jan 24, 2012

President Obama c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Dear Mr. President,

I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here.

The Heritage Foundation website (www.heritage.org ) has lots of good articles and one that caught my attention was concerning your State of Union Speech on January 24, 2012 and here is a short portion of that article:

Insourcing Agenda Displays Misunderstanding of Global Economy – Curtis Dubay

President Obama is right that U.S. businesses face the highest tax rate in the world, but the policies he proposes won’t give relief to U.S. businesses. Instead, his “insourcing” agenda would only make things worse for U.S. businesses competing in growing markets abroad.

Rather than fix the well-known problems with the corporate tax system, President Obama’s would force U.S. businesses to pay tax on their foreign income when they earn it rather than when they return the money to the U.S. That way, these businesses are subject to the highest-in-the-world U.S. corporate tax rate before they would be under the current deferral system.

The wrongheaded thinking that led to this proposal holds that as long as businesses pay the U.S. tax rate on all their income, foreign and domestic, they have less reason to locate jobs overseas. However, this is just another form of protectionism, because it purports to protect U.S. jobs from the foreign competition.

President Obama is wrong when he assumes that a U.S. company expands overseas it does so at the expense of our economy. When a U.S. company moves into a foreign market to meet new demand, it creates jobs not only in the new market but in the United States, as well.

President Obama’s insourcing policies would make it more difficult for U.S. businesses to chase promising opportunities around the globe and slow job growth here at home in the process. Instead of wrapping protectionist policies in the tax code, the President should propose to reform the entire tax code to make it more competitive internationally. That would mean a lower rate for all businesses and taxing them only on the income they earn here at home.

_______________________

Got to keep the taxes down in order for our businesses to flourish.

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your committment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com