Can’t Wait for Your Rich Boss to Pay More Taxes?
Some early looks at the new tax changes appear clear that the wealthiest of Americans will be paying significantly more taxes very soon. I’m not wealthy and this doesn’t impact me at all. However, I’ve known and worked for many wealthy people. In the time that I’ve known those people, one fact was always true…
Wealthy People Don’t Get Pay Cuts.
Wealthy people sometimes lose (a lot) of money in investments and may mismanage even more… but they don’t take pay cuts. Each year, the amount of money that they bring home with each paycheck continues to get larger. Business may be up, business may be down… but they always seem to pull out an extra bonus or an extra few (thousand) bucks.
So… when the US Government decides to increase taxes on wealthy people, it scares the heck out of me. It should scare the heck out of you as well. If the government increases taxes by 20% on a $500,000 income… that $100,000 is going to be made up somewhere else. It won’t be out of the pockets of the wealthy.
The nice thing about being wealthy is that you can shuffle expenses around, work with some great accountants, and negotiate some new terms in the boardroom. They have options when faced with these challenges that you and I don’t have.
Cutting two $50,000 employees makes up $100,000 pretty easily. Cut two employees and the other employees can make up the work. Problem solved. The wealthy don’t get a pay cut and a couple of folks are out of work.
You think 7% unemployment is bad? You ain’t seen nuthin yet!
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