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Taxation and its relation to the profit of a business
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[QUOTE="Mellorando, post: 205195, member: 37973"] A study shows that higher tax rates are associated with fewer formal businesses and lower private investment. A percentage point increase in the effective corporate income tax rate reduces the likelihood of establishing a subsidiary in an economy by 2.9%. The concept of taxation is also important to businesses because governments can fund this money back into the economy in the form of loans or other funding forms. Taxes help raise the standard of living in a country. ... Businesses flourish when there is a market for their product and services. Taxation, imposition of compulsory levies on individuals or entities by governments. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well. In modern economies taxes are the most important source of governmental revenue. Here are seven ways Americans pay taxes: 1 Income taxes. Income taxes can be charged at the federal, state and local levels. ... 2 Sales taxes. Sales taxes are taxes on goods and services purchased. ... 3 Excise taxes. ... 4 Payroll taxes. ... 5 Property taxes. ... 6 Estate taxes. ... 7 Gift taxes. [/QUOTE]
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Taxation and its relation to the profit of a business
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