Imagine you own a company that produces cars - 275 Words

Imagine you own a company that produces cars (Essay Sample) Content: Discussion 6Authorà ¢Ã¢â€š ¬s NameUniversity AffiliationDiscussion 6Paying tax is one of the activities the company undertakes to remain compliant with the laws of the land. As such, the company pays registration fees, which depends on the weight, and classesà ¢Ã¢â€š ¬ of the various cars produced. The company produces passenger cars and trailers, and there is a specified registration fee for the two types of vehicles. In addition, whenever the company makes a sale of any vehicle, there is sales tax, paid to the government as tax (IRS, 2014). Apparently, the company pays a variety of taxes, which affects the companyà ¢Ã¢â€š ¬s budget in one way or another. In this regard, the companyà ¢Ã¢â€š ¬s initial investment in the production equipment is not affected by income taxes, mainly because it has no direct influence on the companyà ¢Ã¢â€š ¬s net income (Heisinger, Hoyle, 2014).Different companies perceive paying taxes differently. From this businessà ¢Ã¢â€š ¬ poi nt of view, taxes are beneficial. In fact, paying taxes is a social responsibility, and it creates a good reputation for the company. Although such a reputation can attract investors and consumers, the amount of tax has a negative effect on the workforce. For example, employees receive low wages to cater for the taxes, and subsequently fail to receive significant benefits. High taxation makes employers employ fewer employees compared to when the tax levels are low. If taxes were a bit lower, the business would run differently and more efficiently.In this regard, the company would use the money to conduct research and development, to come up with other cars. In addition, the company could invest in social responsibility, mainly through making the society a better place. The money would cater for activities in the society, such as helping the needy. The company val...