Obama's tax hike on $250,000 could create job losses
March 2, 5:59 AM ? 1 comment ShareThis Feed
BlendStockPhotos/FotosearchPresident Barack Obama's announcement on taxing incomes over $250,000 has sent high income achievers looking for ways to reduce their incomes to avoid it. The result may be a loss in jobs or the hiring new employees, further adding to the unemployment figures.
Accountants and financial advisors are already working with their clients in way to circumvent the addition taxes on their income. One way will be to work fewer days. Professionals such as dentists, doctors and lawyers can adjust their incomes by seeing fewer clients and reducing the days in their offices. The results would be the to layoff people who are normally employed on those days or the elimination of their jobs as practices are consolidated.
Newton's law says, "For every action, there is an equal and opposite reaction." This may be true in a way the Obama administration never anticipated when deciding to hike taxes on those making $250,000 or more a year. If it results in more layoffs of workers, it may boomerang and in the end, result in less taxes being paid and fewer jobs being created.
