Do tax affect business negatively or positively?

[Deleted member 51169]

In managing a business there many factors that possess as threat to their existence. One of such factors is TAX. Tax in most third world countries are used as instrument against perceived government enemies, while waivers are given to allies.

Firstly, according to Investopedia "Taxes are mandatory contributions levied on individuals or corporations by a government entity—whether local, regional or national". It has been argued that it is basically a source of revenue, which governments uses to aid development. Before we delve into how it could mar a business venture, let's take a look at the different types of Taxes we have:
There are two types of taxes namely, direct taxes and indirect taxes. ... You pay some of them directly, like the cringed income tax, corporate tax, and wealth tax etc while you pay some of the taxes indirectly, like sales tax, service tax, and value added tax etc.(policybazar 2019).

As posited in the topic, what is your taken on taxes?

Should tax be discontinued especially for embryo business and low income earners?

With the rate of embezzlement and looting by public officials and its use as weapon, should tax not be abrogated?

PS: Tax should be waived for any business that has not reach minimum threshold of $100,000.00

 

[kayode10]

One thing I can say is that this depend on the government policy in your country or state. For instance in My City most business are paying double tax. they are going to pay one to the state government and the other one to the Federal government. And this make their product or services to be more expensive.

 

[Mika]

Business means you sell products and earn profits. If you are earning profits, why not pay tax. Well, I understand not all businesses might be earning profits, but you pay tax on your profits and not do pay tax on your losses. Well, there are some taxes that need to be paid irrespective of loss or profits.

 

[kayode10]

Most small scale businesses are paying double tax in this part of the world. The beer tax on the things they buy and also pay tax on the business. If they fail to pay the tax to the government due to loss in the business, the task collector will look up their job or business and prevent them from doing their work. The worst part is that they are not receiving any grants from the government to cushion the effect.

 

[Deleted member 51169]

One thing I can say is that this depend on the government policy in your country or state. For instance in My City most business are paying double tax. they are going to pay one to the state government and the other one to the Federal government. And this make their product or services to be more expensive.

So in such scenario what is your submissions. Should this exploitative nature continue to the detriment of a business owner. Most times, when you see these businesses migrates to a better climes. The same government that frustrated them, will be the same shading them by calling the owner unpatriotic.

These unbridled mutli-taxation kills business more than losses, which invariably affects your managerial skills.

 

[Deleted member 51169]

Business means you sell products and earn profits. If you are earning profits, why not pay tax. Well, I understand not all businesses might be earning profits, but you pay tax on your profits and not do pay tax on your losses. Well, there are some taxes that need to be paid irrespective of loss or profits.

Please can you enumerated such taxes. I know government of some first world countries allows tax evasion for some wealthy individuals, once the engage in humanitarian services; this is why you see most western wealthiest owns one foundation or the other. Now Juxtapose them with your submissions "...that there are some taxes that need to be paid irrespective of loss or profits".

These taxes evaded by the wealthy are waived off for them, why won't government do so for small scale businesses too?

 

[btaliat]

In as much as I won't want government to stop tax because of its numerous usefulnesses, it is expedient of government to regulate the ways the tax is being administered. In some countries, they have what is called retrogressive, progressive and proportional that will make it easier for tax to be administered.

 

[kayode10]

It seems everything is designed to work in opposite direction in my own country. Only a tiny fraction of the taxes we pay as a business owner comes back to us in terms of the things government are doing to the citizens. The sad part is that a civil servant can sit on all the tax being paid by the citizens and embezzle everything.

 

[Chibson]

I think tax is necessary for a lot of things, in developed economies then use the taxes people pay to provide enabling environment for businesses and upcoming businesses but the reverse may be the case in some countries. Taxes doesn't really do much harm to businesses because there are some small businesses that are exempted from paying taxes. 100000 dollar business is not really a small business and can comfortably pay tax.

 

[kayode10]

Your business is going to benefit a lot if you are paying corporate staff regularly. At first you are not going to be in the category of the people who the government are going to close down their business when they are doing searching on tax evasion. it will also give you the opportunity to have access to government grant and forgivable loans in the future.

 

[Jasmine]

You should never examine the taxation in relation to the effect on your business (positively or negatively). Paying tax is your responsibility. How can you imagine to make money from your business and yet not pay to the government. As long as you are making money, you should always pay tax.