Imagine you own a company that produces cars: What taxes do you have to pay duri

Question

Imagine you own a company that produces cars: What taxes do you have to pay during the course of your business cycle? Think about the process from start to finish. How do these taxes affect your budget? What impact do you believe taxes have on the state of employment and the workforce? Are they beneficial or a hindrance to growth in employment? If taxes were lower, how could you run your business differently? What do you think would happen if there were no taxes and you could spend all your money on capital and employee wages?

Explanation / Answer

If the company produces cars then it has to initially pay an annual registeration fees . Then the Excise duty is paid on the manufacture of the car. Personal property tax will also be paid. These taxes vary from state to state. Then some taxes are to be paid which are based on the weight of the vehicle.

So these taxes are to be paid. When so many taxes are levied it leads to increase in the value of the car. Therefore it increases the budgeted cost but gain it varies from place to place.

Major overseas automaker such as BMW, MITSUBISHI , PORSCHE sell a form of stock investment in US that allows investors to share in Coporate profits.

It is definitely beneficial for th employees working because the more amount of tax deposited will be used by the country for the welfare of people. The business can be run differently if less amount of taxes are paid . The extra amount spend for taxes can be used by the companies for other purposes. No if there were no taxes the all the money cannot be spent on capital and employees wages.

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