For a developing country like Philippines, how tax cut would affect business investments or economic growth?
This was selected as Best Answer No corporation or individual likes to pay taxes. This is a simplistic axiom. The cliche that if business pays less tax that they will invest or re-invest the necessary capital into a regional or national economy in order to boost economic growth is worn out. This issue is exceedingly complex and many studies have been executed across the globe and not just in the developing world. Go into the archives of the World Bank IMF, Unesco and you can see this. Governments need to structure their policies to clearly encourage both inward and external growth. Tax incentives are only one means to accomplish this. Other means are also necessary. Many times infrastructure arrangements are made as a type of exchange. For example, a company may be given incentives in a region, provided that they build roads, transport, schools, and even hospitals. Such an exchange can be equitable provided that the policy is well thought out and that the region and its people receive
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