The perspective of higher taxation for huge companies has ignited significant discourse, with a spectrum of opinions regarding whether they serve as a way of contributing to society or pose a threat to business investments and economic growth. This essay will elucidate both perspectives before articulating my own stance.
On the one side of the debate, imposing more taxes on big corporations will lead to a tremendous extra income to the budget of the country where they are situated. The country might use this money and increase funding to vital industries like education and medicine. One good illustration of it is Germany, where the percentage of taxation depends on your company’s income, this approach helps them to compensate expenses in medicine and provide governmental hospitals with the late technological devices and equipment. That is why medicine in Germany is accounted to be one of the best in the world.
On the other hand, It may not be lucrative for the economy, as mostly huge taxes frustrate big companies. This idea can jeopardize the economy of the country itself, as it scares investors and businesses from investing or opening headquarters there. For example, the vast majority of American companies like Apple, Microsoft or Google build their headquarters in Ireland due to low taxes for businesses there. This undeniably draws potential investors to Ireland and boosts its economy. But for the US economy, it leads to stagnation.
To sum up, In my opinion, the most effective approach is to keep taxes at a moderate level in order to attract investors and encourage local companies not to open their businesses abroad.