550 N Highland Ave.

#344
Tucson, AZ 85719
April 15th, 2016

Senator Hillary Clinton

Presidential Candidate
Post Office Box # 5256
New York, NY 10185

Dear Senator Clinton:

I am writing to you because you are currently the Democratic presidential front runner and have a chance to reform the future
economic fiscal policy on corporations ability to outsource. I believe that you can help bring these businesses back into the U.S. from
overseas. Currently, I am a freshman at the University of Arizona in Tucson, AZ; I am a Business Economics major with possible
additional major(s) in Entrepreneurship and/or Finance, this sort of financial policy applies to me because I wish to go into the realm
of business.

Given the current U.S. Fiscal Policy, that advocates a corporate income tax rate of 35%, corporations are incentivized to outsource
their business to countries with lower tax rates, such as Qatarin Asiawith a corporate income tax rate of 10%. This sort of
disparity can be beneficial for a corporation like Apple, who made $74.6 billion in their first quarter of their 2015 fiscal year. Instead
of losing $2.6 billion in generated income tax revenue on this particular quarter, they can now only pay $746 million in tax revenue
with the ability to use these saved profits in such areas as developing technology and investing capital of business.

However, corporations will argue that the U.S. fails to be affected financially due to outsourcing given that the U.S. has the fourth
highest GDP in the world with an average of approximately $54,597 per capita and $16.8 trillion overall. Corporations have the ability
to save money by outsourcing their business to foreign countries. Given that the U.S. currently holds an unemployment rate of around
5% as of March 2016, corporations claim that the work force is not affected by outsourcing.

On the other hand, the work force contains 40 million jobs that are susceptible to outsourcing by corporations and which can be lost to
foreign countries. We have a tremendous amount of possible economic growth that can be used to help expand the current GDP into
more than what it already is, but first we have to focus on aiding the U.S. workforce. At one point the unemployment rate was
incredibly high, nearly 10% in October of 2009. This was partly due to the byproduct of corporations outsourcing available jobs
overseas to countries with lower tax rates than the U.S. If corporations continue to outsource then the unemployment rate could
increase again.

I believe that you, and other future policy makers, need to help create incentives for these corporations to keep their business in the
United States. This can be done by creating a reform to the current foreign policy. Businesses are looking for countries with lower tax
rates, and the U.S. has to lower its current rate to incentivize corporations. In order to keep these corporations domestic, you have to
be willing to compromise with their demands. This means lowering the tax rate to reasonable amounts, or possibly using an
alternativementioned by University of California, Berkeley Economics Professor Alan Auerbachin which the U.S. would use a
destination basis tax rate that determines how much to tax on the GDP of these corporations based on the amount of transactions that
take place in the given country as opposed to its worldwide sales. This policy would still allow businesses to offshore their business,
but they would be more incentivized to keep their corporation in the U.S. This would mean that the U.S. only taxes a percentage of the
corporations GDP, as opposed to its entire revenue.

If indeed you decided to use this new proposed policy, you could help bring corporations back to the U.S., and help mend the current
GDP of the U.S. This could earn you more support from those within the government due to increase in U.S. imbursements. Also, if
corporations import their businesses back into the U.S., other countries will want to open up free trade with the U.S. which helps bring
in more revenue for our country.

I would love to talk more about this and be able to receive your input on the matter. My email address is,
jonathanquinn@email.arizona.edu and you can also find my information through the campus directory. Thank you for your time and I
look forward to hearing from you in the near future.

With Regards,

Jonathan Michael Quinn

550 N Highland Ave. #344
Tucson, AZ 85719
April 15th, 2016

References
Auerbach, A. (2013, August). Capital Income Taxation, Corporate Taxation, Wealth Transfer Taxes, and Consumption Tax Reforms.
Berkeley, California, United States of America. Retrieved April 16, 2016, from
http://eml.berkeley.edu/~auerbach/Capital%20Income%20Taxation.pdf

Bureau of Labor Statistics. (2016, January 1). Databases, Tables, & Calculators by Subject. Washington D.C., District of Columbia,
United States of America. Retrieved April 16, 2016, from http://data.bls.gov/timeseries/LNS14000000

Lowensohn, J. (2015, January 27). Apple posts $18 billion profit, the largest in its history. New York City, New York, United States
of America. Retrieved April 20, 2016, from http://www.theverge.com/2015/1/27/7923461/apple-q1-2015-earnings

Pomerleau, K. (2015, October 01). Corporate Income Tax Rates around the World, 2015. Retrieved April 16, 2016, from
http://taxfoundation.org/article/corporate-income-tax-rates-around-world-2015

U.S. News & World Report L.P. (n.d.). Best Countries. Washington D.C., Distric of Columbia, United States of America. Retrieved
April 16, 2016, from http://www.usnews.com/news/best-countries/united-states#ranking-details