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Thursday, June 4, 2009

Obama's Possible Tax Hike Could Chase Microsoft Jobs Overseas

Apparently, Bill Gates, an avid Obama supporter didn't quite expect for this kind of change, or he doesn't feel like shared sacrifice through overtaxation is patriotic:

Microsoft Corp. Chief Executive Officer Steven Ballmer said the world’s largest software company would move some employees offshore if Congress enacts President Barack Obama’s plans to impose higher taxes on U.S. companies’ foreign profits.

“It makes U.S. jobs more expensive,” Ballmer said in an interview. “We’re better off taking lots of people and moving them out of the U.S. as opposed to keeping them inside the U.S.”

This is just one of the huge problems that come with raising taxes. If you raise taxes, people will move away to avoid them. Therefore, whatever extra income that might result from the companies that stay will be negated by those that look for greener pastures.

In addition, the community will also lose jobs. That will lower the taxes received through sales taxes, personal income, and property taxes. Therefore, if you add the extra income from taxes minus lost taxes from lost jobs, sales, personal income, and property taxes, you will have a net loss of tax income not increase.

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