http://en.wikipedia.org/wiki/Capitalism
"...the component concepts used in defining capitalism — such as private ownership, markets and investment — have evolved along with changes in theory, in law, and in practice."
which one of these are true?
In a capitalist economy:
a) one might a profit
b) one would pay no taxes
4 answers
Let us know what you think, and someone here will be happy to comment on your ideas.
I know they are allowed to make a profit but at the same time a place like Singapore is capitalist and pays very little tax. I assume that both choices are somewhat correct. but it's a multiple choice question and i can only choose one so i don't know which one fits more
Think about this. If you own a business and don't have to pay high taxes, where will you put your profits? Into your business to make it even more successful? Or into your own pocket? Or both?
Based on my grandfather's experience as a small business owner in Nevada and California in the 1920s-1970s, capitalism thrives on low taxes so he could build his business. Higher taxes during the LBJ presidency took away money from his business, and he had to cut his business back, laying people off.
It's a balancing act. There need to be enough taxes to do what's needed in the government (whether federal or state or local), but business owners also need to be able to make enough money to support their families and their businesses, AND to "grow" their businesses.
Based on my grandfather's experience as a small business owner in Nevada and California in the 1920s-1970s, capitalism thrives on low taxes so he could build his business. Higher taxes during the LBJ presidency took away money from his business, and he had to cut his business back, laying people off.
It's a balancing act. There need to be enough taxes to do what's needed in the government (whether federal or state or local), but business owners also need to be able to make enough money to support their families and their businesses, AND to "grow" their businesses.