How can the social security system and the tax burden of business activities affect entrepreneurship and innovation on a national basis?
In my opinion, entrepreneurship develops effectively and becomes more and more competitive if the state creates the right conditions for entrepreneurs. First of all, low tax burden and low costs of contributions to the social insurance system. Contributions to the social security system should be adapted to the situation of running a business and the level of income.
On the other hand, there are countries in which the very fact of establishing a business entails the need to pay taxes and high premiums for the social security system even when real economic activity is not carried out and / or does not bring any or very low income and no profits. Such unfriendly tax and business activity systems operate in some countries.
Paradoxically, in some countries, taxes and contributions to the social security system, mainly micro-enterprises, are most heavily burdened with taxes. Paradoxically, micro-enterprises are often the source of new business solutions, innovations, start-up startups, and they are the source of entrepreneurship.
In some countries, the contributions paid by entrepreneurs to micro-enterprises for the social insurance system are fully voluntary and this has not led to a collapse and crisis in the state's public finance system in these countries. Some of the countries in which these contributions are voluntary are rich, developed countries in which entrepreneurship and innovation are effectively developing.
On the other hand, those countries in which these contributions to the social insurance system are compulsory and regardless of the economic situation, regardless of the generated profits, earnings and whether they actually conduct business activity in real terms, the public finance situation is not the best. What do you think about it? What is your opinion on this matter?
In the context of the above issues, I am asking you the following question:
How can the social security system and the tax burden of business activities affect entrepreneurship and innovation on a national basis?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
It affects entrepreneurial willingness by affecting the perceived chances of success through things like the breakeven point etc.
It can affect the net present value of the entrepreneur's project.
It affects entrepreneur intial growth and difficult to sustain profitable position..
Налоговое бремя экономической деятельности должно регулируваться государством в зависимости от необходимости поддержки направления предпринимательской деятельности. Исходя из состояния спроса и потребления определенных видов продукции, а также необходимости развития отдельных отраслей еконоимики госужарства и определяются основные аспекты в налогообложении и создании определенных налоговых льгот. Касательно социального страхования. то этот вопрос решается на уровне высшего управленческого персонала субьектов хозяйственности з целью обеспечения минимизации рисков предпринимательской деятельности, исходя из анализа возможных рисков.
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