Since January 2015, the gross domestic product annual growth rate was at 3.3 percent, currently it is at 1.3%.The payroll tax currently set at 12.4%, 6.2% for employees and for employers, it may seem reasonable rate to charge the tax out of the working class salary but, in reality there has to be an increase of spending to increase the flow of money in the economy. This will stop the increasing inflation rate that seems to be building up since 2014. I propose a total payroll tax rate around 6%, around 3% for the employee and the employer. It’s an estimated rate, it may be set between 6% to 11% depending on how your economic advisers would put it(they might increase it to control deflation also). This may be done temperley until the GDP or the gross domestic production is at a stable and positive constant rate.
The trend that lead to the 2008 recession, was the high the corporate tax. At the time before and during of the recession, the corporate tax rate was around 39.3%. This lead to less jobs available for workers, the employers are paying tax at a high rate and must cut workers in order to make profit or to break even. Currently the corporate tax rate is at 38.9%, I propose to lower to 20% the lowest or to around there to where it seems appropriate. Corporations may provide jobs,but lower the tax might lower the amount of outsourcing and relieve pressure to these companies. Anything above 20% is necessary to control the companies.
Now the short and long term capital gain tax might be a problem, at this point the rate is some what high, reducing the long term tax rate for the top bracket from 20% to around 10% would a great help the real estate companies who had the biggest blow at the time, the top bracket is one of the biggest buyers and contributions to the real state and from there increase the flow into the local economy.
Mr. or Ms. President, with you coming into office I hope you take this letter into consideration.
Sincerely , George Pacheco