letter to the President via LinkedIn

Looks like LinkedIn will be hosting a town hall meeting where users are invited to ask President Obama about his job creation program. It's a long shot, but here's mine. I'd be glad to hear any comments you have about this proposal. I think I read something like this in a NYT Op-Ed recently, though I can't remember who to attribute it to:

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Mr President

Rahm Emmanuel is famous for saying "you never want a serious crisis to go to waste." Yet in this dire economic climate, where America's need for bold and innovative policy leadership is as acute as it's ever been, we seem to be doing exactly that.

Please evaluate the following proposal for overhauling America's income tax code: (1) eliminate all corporate taxes, (2) eliminate the investment income exemption, and (3) increase the marginal tax rate for millionaires and up with a simplified, effective rate.

Corporations do one of three things with their profits: (i) pay their board, (ii) pay dividends to their investors, or (iii) reinvest in the company through acquiring labor and capital. The above proposal shifts incentives in favor of option (iii), which leads to greater demand for workers, goods, and services. It also reduces the incentive for companies to seek friendlier business climates abroad, while preserving the individual financial motive necessary for a dynamic business environment.

Very respectfully,

Aaron Polhamus