In our society, we can find a group of individuals who are proponents of the idea of imposing substantial taxes on large enterprises, while the rest find this decision incorrect due to the negative impacts on the corporations’ passion about upcoming economic developments. The essay will present adequate responses from both sides and a personal perspective on this topic.
On the one hand, it seems fair to legally enforce business giants to have high tax burdens due to several arguments. The primary reason for this is that they utilize public infrastructure such as educated human resources, utilities, and legal systems, which are produced with the funds of the entire country. Similarly, these entrepreneurs’ welfare and financial stability rely on education and healthcare systems that create a competitive elite workforce. Although most of those giant companies are technologically armed, they need intellectually mature personnel and new inventions for better productivity, which are being highly provided by the governmental sectors. These can be seen in the fiscal policy of America, where they arrange diverse tax rates for different businesses.
Conversely, harsh tax policies for corporate giants can lead to an economic slowdown and an increase in unemployment rates. High taxes can reduce the incentive for companies to expand their operations, innovate, and create jobs. In a globalized economy, corporations may relocate to countries with lower tax rates, which could lead to job losses in the local economy. Subsequently, the cost of taxes might be passed down to the consumers either through higher prices or result in lower wages for employees, which negatively affects ordinary people.
After observing every aspect of both sides, despite the benefits to the government after implementing exacerbated tax amounts, potential economic meltdown and derailed unemployment situations might drag the general prosperity down in the long run. Therefore, I support a government with a business-friendly atmosphere, where businesses can thrive and wholeheartedly contribute to the country’s budget.