ST Alpha - "It's not that outlandish that companies would layoff staff and then rehire once the Obama credits kick in." (Reading a Post)

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It's not that outlandish that companies would layoff staff and then rehire once the Obama credits kick in.

Posted by Loyola Dec 8 '08, 12:23

How could a company who does that be legally denied the impending tax credit for new workers if the credit makes the marginal productivity of a new worker viable? They can't. Taxation is always a blunt instrument. There will be companies who will try that stunt in the hopes of profiting from it. Whether they will benefit or not is another matter. But some will fire now and hire next year under the belief that they will profit.

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I would think in almost every case, the costs incurred from layoffs (severance pay, lost expertise, reduced productivity, low morale, etc...) - znufrii Dec 8, 12:27 7
- but you're right, the way some of the companies are managed it's not outlandish to think that a CEO might be that stupid. -- nm - znufrii Dec 8, 12:27 4
  - I would see that line of thought (that of fire now, hire next year) getting traction in the small business community, 0 to 30 workers size companies - Loyola Dec 8, 12:33 2
    - I would think the margins would be even slimmer, and the downside risks much higher for such a business. -- nm - znufrii Dec 8, 12:40 1
      - The point that I have yet to see refuted is, while no one is going to lay people off b/c of a chance at tax credits later... - TFox Dec 8, 12:44
  - [deleted]
- [deleted] 1
  - that still doesn't make it any better... -- nm - znufrii Dec 8, 12:28

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It's not that outlandish that companies would layoff staff and then rehire once the Obama credits kick in.

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