From the course: Economics for Business Leaders

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Taxes and government spending

Taxes and government spending

From the course: Economics for Business Leaders

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Taxes and government spending

- Economists debate many things. Is supply more important than demand? Do inverted yield curves always precede recessions? Are buttons more preferred to cuff links? But one thing economists are unlikely to debate is whether tax policy impacts corporate decisions. And the reason economists don't debate this is because it is a fact. We know that companies will sometimes go to extreme lengths to avoid paying taxes or to pay fewer taxes. This is why it's important for business leaders to be familiar with tax policy, and there are a few critical areas you should be familiar with. First, there are corporate taxes. These are the taxes that corporations pay governments. They're like income taxes people pay, but they're just income taxes for companies. Corporate tax rates vary greatly from country to country or state to state, and they can also vary depending on company type, but the most important thing here is a big secret.…

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