Nelzen Thrill C.

Garay
BSMA-MA42

1. Based on the article, how does taxation negatively affect business

investment activities in France?
- The tax system is a complex structure with numerous moving elements in any
nation, and France is no exception. I've read the article, and it has a significant
impact on how France's taxes system operates. In the aforementioned nation,
corporate tax affects not only the corporation but also the shareholders
themselves and results in double taxation. The company's productivity and
growth also slowed down because they undervalued the value of wealth that
benefits investors and employees. Just like their capital allowances, they directly
impact business incentives for their new investments. Contrary to most other
nations, businesses typically cannot deduct the cost of capital investments right
away. Instead, businesses must break out the deduction of these expenses
across multiple years, which raises the tax burden associated with new
investments. Overall, a big revision of the French tax code might significantly
increase economic development. In order to lessen complexity and cut statutory
rates, it should work to restore neutrality. Additionally, it should be planned to shift
some of the tax burden from capital and labor taxes to less detrimental taxes on
real estate, inheritance, and the environment.
2. In the Philippine setting, do you agree that taxation positively or negatively
affects business investment activities? Justify.
- Yes, if taxes are properly utilized by the government. The amount of tax
earned by the government could help a lot in the growth and progress of
the country. If the country becomes progressive, the economy would grow
together with businesses. Taxes are advantageous in that they enable the
government to finance economic development initiatives. Additionally, it
sustains exceptional government workers like teachers. The development
of the Philippines as a whole is substantially aided by everyone chipping in
their fair bit. On the other hand, tax schemes have unfair negative
impacts, and the majority of large firms evade paying taxes.The only
feasible way to get money to pay for government expenditure on the
products and services that the majority of us need is through taxes. But
creating a fair and effective tax system is not an easy task. Additionally,
governments must achieve a balance between maintaining a fair and
equitable tax system and accomplishing goals like improved revenue
mobilization, sustainable growth, and lower compliance costs.