I'm writing this thread because I actually want to hear if any Obama supporter has thought about how he is going to address what I see as one of the fundamental problem with his tax plan. I'm not interested in discussing the merits of a taxing the rich strategy (everyone who has read my posts knows I disagree with the plan). I'm really interested in hearing about what Obama's plan will mean in real terms, and whether it will have unintended consequences, similar to the ones I predict below.
Kruger mentioned in one of his posts that he thought what would happen under Obama is that Wall Street and the private sector will just look for ways to get around his ungodly high taxes. It got me thinking.
This is what I think will happen:
-Anyone making under $300,000 but over $250,000 will ask their employer to lower their salary to $249,000 as after taxes it will probably be around the same number.
-Anyone making significantly more money than $249,000 will probably look into getting a portion of their income in stock options, benefits, and other forms of compensation to skirt around taxes.
-Small businesses will almost uniformly make $249,000 a year, while reinvesting the rest into the business and in tax write offs. Thats just good business.
-I'm sure big business will have similar strategies as well.
What this will cause:
-Obama is counting on using the current situation for his tax plan to succeed, even though I think there will be a significant dip in over 250k income after his plan is implemented.
-This means that there will be further revenue shortages. Debt will increase. We will be in worse shape.
Any comments?
Kruger mentioned in one of his posts that he thought what would happen under Obama is that Wall Street and the private sector will just look for ways to get around his ungodly high taxes. It got me thinking.
This is what I think will happen:
-Anyone making under $300,000 but over $250,000 will ask their employer to lower their salary to $249,000 as after taxes it will probably be around the same number.
-Anyone making significantly more money than $249,000 will probably look into getting a portion of their income in stock options, benefits, and other forms of compensation to skirt around taxes.
-Small businesses will almost uniformly make $249,000 a year, while reinvesting the rest into the business and in tax write offs. Thats just good business.
-I'm sure big business will have similar strategies as well.
What this will cause:
-Obama is counting on using the current situation for his tax plan to succeed, even though I think there will be a significant dip in over 250k income after his plan is implemented.
-This means that there will be further revenue shortages. Debt will increase. We will be in worse shape.
Any comments?