Debate Over Allowing Big Businesses to Lower Tax OverheadsThe question of whether big businesses should be permitted to lower their taxoverheads is a contentious issue that touches upon economic, social, and ethicalconsiderations. Advocates argue that businesses have a fiduciary responsibility totheir shareholders to maximize profits legally. Employing tax planning strategies tominimize tax liabilities allows businesses to retain more earnings, which can bereinvested into the company for expansion, innovation, and job creation. Additionally,proponents contend that tax incentives and deductions provided by governments aredesigned to encourage investment and economic growth, and businesses have theright to take advantage of these incentives within the confines of the law.On the other hand, critics argue that allowing big businesses to lower their taxoverheads through aggressive tax avoidance measures can have detrimental effectson society. Such practices can exacerbate income inequality by shifting the taxburden onto individuals and small businesses who may not have the resources toengage in complex tax planning. Moreover, aggressive tax avoidance by bigcorporations can erode public trust in the fairness and integrity of the tax system,leading to decreased compliance and undermining the government's ability to fundessential public services and infrastructure.Furthermore, there are ethical concerns associated with some tax avoidancetechniques employed by big businesses, such as using tax havens and transferpricing to shift profits to low-tax jurisdictions. Critics argue that such practices maybe legal but unethical, as they exploit regulatory loopholes and contribute to theerosion of the tax base, depriving governments of revenue needed to addresssocietal needs.Objective Type Question:Which argument supports the notion of allowing big businesses to lower their taxoverheads?A) Enhancing public trust and transparencyB) Stimulating economic growth and job creationC) Exacerbating income inequality and social disparitiesD) Ensuring government revenue for public services

Income Tax is a statutory or mandatory tax payable by the individuals and other entities on the…

Which argument supports the notion of allowing big businesses to lower their tax overheads? A) Enhancing public trust and transparency B) Stimulating economic growth and job creation C) Exacerbating income inequality and social disparities D) Ensuring government revenue for public services

Which argument supports the notion of allowing big businesses to lower their tax overheads? A) Enhancing public trust and transparency B) Stimulating economic growth and job creation C) Exacerbating income inequality and social disparities D) Ensuring government revenue for public services

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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