Essays on How Policies in the United States Affect Businesses Coursework

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The paper "How Policies in the United States Affect Businesses" is a perfect example of business coursework.   Business in the modern world has been changing rapidly due to increased globalization which has brought about new opportunities and challenges as well. This has seen many policies being put in place to regulate business. Among these policies is the policy on taxation which plays a significant role in the day to day operations and profitability of many businesses. According to Hungerford (2012), the tax affects businesses from two perspectives. First, it is considered an expense for a business every time it is paid.

Increase in the amount of tax paid by a business would have the same impact as an increase in the cost of sales or any other expense such as an electricity bill would. The tax also affects businesses due to its complexity in that, the business does not only incur the tax expense but it also needs to incur the cost of hiring an individual to compute and determine what the amount of tax to Be paid is, and also to keep records as evidence of payment. The main top agenda for most businesses is increasing profitability which is vital for the continuity of any business.

A business can be in a position to absorb a rise in an expense such as tax in the short run but in the long-run, the business would require to cover these raised costs by raising their charges as well (Viard, 2007). How tax policies in Australia affect business The business and tax outlook has changed drastically in the recent past and the pace and complexity of the change continue to increase.

Due to this, tax authorities are forced to re-strategize their tax enforcement by changing their policies and attention so as to adapt to the changing business environment and remain competitive (Hungerford & Jane, 2010). Businesses, on the other hand, are balancing between competing priorities, maintaining compliance with the set rules while also adding value. Attracting investments in Australia will improve the revenue from working as well as saving which is of much significance in bolstering the national income of the country. To attain an internationally competitive business environment, a country should well be able to balance the bases of tax and rates and put in place policies that motivate and seek to bolster this development.

However, Hufbauer, (2002) notes that reduction in the amounts of taxes paid by businesses to bolster economic development with no corresponding change in the quality of public services offered transfers the tax burden to households. Australians living standards are attributed to the county’ s economic performance. This is in a greater extent influenced by the level of productivity of investment in Australia which affects the level of economic output.

Tax on these investments affects many of the drivers of economic growth. This effect could be on fixed capital, innovation, entrepreneurship, labour productivity and the exposure to trade and foreign direct investments hence supporting the argument that over-relying on capital income taxes mostly corporate income taxes is not enough to maintain a stable and vigorous revenue base. However, in Australia individual businesses or companies are required to pay taxes to all levels of government; that is local, state and federal governments which is a major source of their revenue, which is in turn used to enhance the business and economic environment of these states and the country at large (Grubert & John, 1995).

References

Clausing, K., A.(2004), The American Jobs Creation Act of 2004: Creating Jobs for Accountants and Lawyers, Tax Policy Issues and Options Brief 8 Washington: Tax Policy Center.

Desai, M., A. and James, R., H. (2003), Value Added Taxes and International Trade: The Evidence, working paper, Harvard Business School.

Grubert, H. (2001), Enacting Dividend Exemption and Tax Revenue," National Tax Journal 54, no. 4 (2001): 811-27.

Grubert, H., & John, M. (1995), Taxing Multinationals in a World with Portfolio Flows and R&D: Is Capital Export Neutrality Obsolete? International Tax and Public Finance Journal 2, no. 3 : 439-57.

Hufbauer, G., C. The Foreign Sales Corporation Drama: Reaching the Last Act?" International Economic Policy Briefs PB02-1. Washington: Institute for International Economics, November 2002).

Gittins, R. (2009), A light on the hill for our future tax reformers. The Age.

Hungerford, T., L. (2012), Taxes and the Economy: An Economic Analysis of the Top Tax Rates Since 1945. Congressional Research Service http://graphics8.nytimes.com/news/business/0915taxesandeconomy.pdf

Hungerford, T., L. and Jane, G. 2010, Business Investment and Employment Tax Incentives to Stimulate the Economy. Congressional Research Service. http://assets.opencrs.com/rpts/R41034_20100122.pdf

Viard, A., D. (2007) Border Adjustments Won’t Promote Competitiveness," Tax Notes (December 4, 2004): 122-24.Author: Kimberly Clausing Last Updated: October 17, 2007

Zandi, M. (2011). An Analysis of the Obama Jobs Plan. Moody’s Analytics. http://www.economy.com/dismal/article_free.asp?cid=224641

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