The primary purpose of taxation is to raise revenue for the support of the government. However, taxation is often empioyed as a devise for regulation by means of which, certain effects or conditions envisioned by the government may be achieved such as: a. Taxation may be used to provide incentive to greater production through grant of tax exemptions. b. Taxation can strengthen weak enterprises by creating condtions conducive to their growth through grant of tax exemptions. c. Taxes may be increased in periods of prosperity to curb spending power and halt inflation or lowered in periods of slump to expannd business and ward off depression. d. All of the above
The primary purpose of taxation is to raise revenue for the support of the government. However, taxation is often empioyed as a devise for regulation by means of which, certain effects or conditions envisioned by the government may be achieved such as: a. Taxation may be used to provide incentive to greater production through grant of tax exemptions. b. Taxation can strengthen weak enterprises by creating condtions conducive to their growth through grant of tax exemptions. c. Taxes may be increased in periods of prosperity to curb spending power and halt inflation or lowered in periods of slump to expannd business and ward off depression. d. All of the above
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The primary purpose of taxation is to raise revenue for the suppart of
the government. However, taxation is often employed as a devise tor
regulation by means of which, certain effects or conditions envisioned
by the government may be achieved such as:
a. Taxation may be used to provide incentive to greater production
through grant of tax exemptions.
b. Taxation can strengthen weak enterprises by creating condniors
conducive to their growth through grant of tax exemptions.
c. Taxes may be increased in periods of prosperity to curb spending
power and halt inflation or lowered in periods of slump to expand
business and ward off depression.
d. All of the above
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