IMPORTANCE OF

TAXES IN DECISION
MAKING
MEET OUR
TEAM

ALCANTARA, BUID, KENIDEL FABREGAS, IVY

HAZEL JOYCE MARRIENNE
MEMBER MEMBER MEMBER
MEET OUR
TEAM

LOJO, MEJICO, PASAHOL, SILVA,

ANGELYN QUIESLER JAROLD ANGELO
MEMBER MEMBER MEMBER MEMBER
 MANDATORY PAYMET COLLECTED
BY LOCAL, STATE, AND NATIONAL
GOVERNMENTS FROM INDIVIDUALS
OR BUSINESS.
CAN BE USED AS A POWERFUL TOOL
TO EITHER HINDER OR HELP
ECONOMIC GROWTH

2 EXTREMES IN TAXATION:
0% TAX RATE
100% TAX RATE
 CORPORATE TAX RATE
A corporate tax is a tax on the profits of a
corporation.

TAX RATE
Taxes are based on taxable income
after expenses have been deducted.

There are both federal and state

corporation tax rates. The federal corporate
tax rate is a flat rate that applies to all
businesses. On the other hand, state tax
rates vary by state.
CORPORATE TAX RATE
CORPORATE TAX RATE
 CORPORATE TAX RATE
However, under the new Trump tax cuts, these companies
have now made business decisions to bring those funds into
the U.S., to invest and grow. These corporate funds are
estimated to be about $664.9 billion, just in 2018 alone. This,
in some cases, led many employees from these firms to
receive bonuses from $1,000 to $2,000 resulting directly
from the new tax reform.
 CORPORATE TAX RATE
Furthermore, when the corporate tax rate is high. Many
managerial decisions will be affected by this high tax rate.
For instance, these corporations will pass the tax onto their
consumers, i.e. in the form of higher prices.
 TRADE & TARIFFS
improves each trading partners value

achieve low costs through mass

TRADE productions

“often lead to substantially lower per-unit

costs and enormous increases in output per
worker”

EXAMPLE:
 TRADE & TARIFFS
imposed on goods when they leave or enter
the country hinders trade
TARIFF
drive up prices on everything that consumers
purchase that is imported from other countries

Make decisions and sometimes critical

decisions in the result of trade and tariff
policies.

EXAMPLE:

APPLE, INC.
 For Additional Information....
Taxation in financial decision-making, top
managements of every organizations make a
wide variety of decisions.
Furthermore, top management must take
into consideration both the tax and non-tax
costs of a decision, not just the monetary tax
consequences.
“There’s not a decision a business makes that doesn’t
have tax implications,”
“It is all about decision-making.”
-Courtney Edwards
 CAPITAL GAINS
affect the individual, business, and
managerial decisions
Capital gains apply to any type of asset, including
investments and those purchased for personal use

Short term or long term

lowering capital gains tax will benefit
the economy for economic growth
SUBSIDIES
A benefit given to an individual, business,
or institution, usually by the government.
 Conclusion
Taxation is a major variable that must be included in all
financial decisions

Corporate Tax Rate

Trade & Tariffs
Capital Gain
Subsidies