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What an Obama Win Means for Jobs and Small Businesses

It's the day after the election and Texans are no doubt asking what President Barack Obama's second term could mean for jobs and unemployment.

Let's talk about that, shall we?

On Tuesday, President Obama was elected to a second term in office. This was no Bush v. Gore election, where the results were kinda-sorta-iffy. No, this was the real deal, where the outcome was clear and clean.

Despite his re-election, many Americans have been wary of Obama’s policies and the effects of these policies on the creation of jobs. There are many who say that he hasn’t done enough to help small businesses expand to create jobs, writes The Associated Press.

Ray Keating, chief economist for the Small Business & Entrepreneurship Council, says that President Obama’s win means more of the same, reports Fox News. As you may know, small business growth is essential to job creation. So are these fears well founded?

Obama’s small business policies are rooted in tax policy.

One hot issue will be Obama’s desire to raise the top tax rate to 39.6 percent. The reason this affects small businesses is that many small business owners run sole proprietorships or other forms of business where they are the sole owners of the company. This means that they often report the income from the business on their personal tax returns.

Note that this is different from the corporate tax rate, which he plans to lower. So the difference here for small businesses is that they may need to engage in more sophisticated tax planning, to benefit from tax loopholes.

Other Obama policies that might affect small business growth include the infamous Obamacare. Under this law, businesses employing 50 or more employees will be mandated to provide affordable health insurance to their employees. This could serve as a deterrent for smaller businesses to hire new employees.

Over the coming months, we’ll get a better picture on what Obama brings to the table in his second term. He inherited an economic crisis and now, he has a final shot at digging the nation out of the unemployment hole.

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