Politics can affect businesses both negatively and positively through changes made to tax, labor and national security laws, notes David Ingram of the Houston Chronicle. For example, politicians can raise taxes directly on businesses or on individuals, which ends up costing companies in the long run as people spend less money on goods and services. Alternatively, businesses profit when citizens receive tax incentives.Know More
When national security is improved in a country and the citizens begin to feel safe, they are less apt to hoard their discretionary income in case of an emergency, resulting in more revenues for organizations. Likewise, lowered interest rates on loans and higher returns on investments create a thriving economy that encourages people to spend their money and perhaps even attempt to bankroll their own new businesses.
Small changes in labor laws, such as an increase in minimum wage, can create huge expenses for businesses. The larger a company is, the more expensive these changes are. However, small companies often suffer the most from alterations made to the political landscape because they seldom have the cash reserves available to patch a sudden dent in their finances. As Ingram explains, the government sometimes enacts special assistance programs exclusively available to small businesses to offset these harmful liabilities.Learn more about Political Parties
The French Revolution had an impact on the politics and laws of the United States. It was also a primary motivator behind the passage of the Alien and Sedition Acts in 1798.Full Answer >
The formula to back out sales tax from a purchase is written as total price / 1 + sales tax rate = cost without sales tax, according to the financial section of the Houston Chronicle. To determine the cost of the item without sales tax, one would divide the final price by 1 plus the sales tax rate.Full Answer >
Tax benefits of an LLC include pass-through taxation, which avoids double taxation of corporate profits, a choice on how to be taxed, and deduction of business expenses, according to the Houston Chronicle. Profits for LLCs are generally reported on each member's personal tax return and are subject to self-employment tax.Full Answer >
To estimate capital gains, subtract the basis from the selling price of a capital asset, then apply the appropriate capital gains tax rate, explains the Houston Chronicle. Capital gains tax rates change annually, and current rates are available on the official website of the Internal Revenue Service.Full Answer >