There's this thing we learn in economics 201. Essentially, every firm will produce the maximum amount of product it can while still making money on each item. Each item to produce takes more money then the previous one, since they have already used their most efficient production resources. So they keep going until it becomes more expensive to produce then the profit from that item redeems. Now when you increase the cost of production (via obamacare/taxes or other methods), you have now crossed the line, and now are producing things at a cost that is more expensive then the profit you get from them. Thus, its time to scale down to stay in line again. Obviously this is simply generalized, but that's how economics works. If you increase the cost of production you WILL get layoffs, everytime, no matter what. And its not simply political.