Higher Taxes are Coming

Gross, D. (2010). Higher taxes are coming, but it’s not the end of the world. Retrieve March 23, 2010 from: http://finance.yahoo.com/tech-ticker/higher-taxes-are-coming-but-it's-not-the-end-of-the-world-dan-gross-says-447086.html?tickers=HRB,INTU,JTX,%5EGSPC,%5EDJI,TBT,XRT&sec=topStories&pos=9&asset=&ccode

This article, written by financial journalist and author Dan Gross, tells how and why taxes will be going up soon for some on America’s wealthiest citizens. In order to pay for the expanded health-care bill just passed, President Obama is looking to increase taxes on individuals that make more than $200,000 and couples that make more than $250,000. Also, many believe that there will be higher taxes on unearned income, such as capital gains and other investment income. Gross believes that these higher taxes will not have a large effect on the economy or the stock market; that the people affected will find ways to cut cost and become more efficient. This subject is important to managers because many small businesses are the “wealthy that can pay more in taxes”. Many believe these new taxes do affect the economy and ultimately the stock market because there is less investments in financial markets and in the labor market because of the additional costs of the new taxes. In many cases, taxing the wealthy is the same thing as taxing the employers that create jobs and managers need to be aware of these pending tax changes as they make business decisions regarding expansion and/or contraction.