In response to your peers, state whether you agree or disagree with their conclusion regarding Michigan’s tax credit program. Be sure to justify your response. Do you agree with your peer’s assessment regarding the ethics of accepting government aid? Why or why not?
- Is it the role of government to provide incentives to business? Why or why not?
- In my opinion, the role of government is not to provide incentives to business, however it can be beneficial toward both sectors. For the business receiving the incentives, it provides that extra boost for them to be successful wherever they end up. In turn, it benefits the government by creating jobs around town where the business moved.
- Do you agree with Michigan’s decision to extend tax credits in the manner it has? Why or why not?
- I certainly do not agree with the decision made to extend tax credits. According to the passage, “the MBT is causing Michigan to lose money and the revenue is not increasing as the MBTs are increasing” (Pratt, 2015). This is because the state cannot keep up with the amount of tax credits.
- Is it ethical for a business to accept government incentives in all cases? Alternatively, is it the fiduciary responsibility of businesses to seek government aid in every instance? Explain and defend your responses.
- I think businesses should be able to accept government incentives if they apply and qualify for them. It can drastically help businesses grow and maintain success so I think they should be able to qualify in every instance.
- How might a business that accepts incentives effectively respond to criticism that it is accepting corporate welfare?
- The businesses that accept incentives can respond to the criticisms by explaining that they qualified for the corporate welfare. Of course, if it does not work out, the government will have to change their policies and make the application process more difficult.
It is not the role of government to provide incentives to business. But on the other side, it is valuable for business and government both of them. By providing incentives it helps the business to enhance the efficiency of operations and also help to earn more profit. Government contribution supports other business to originate into the market and also helps to create new jobs for people of surrounding areas.
Michigan’s decisions to extend tax credits is not a good decision. The business tax MBT loses the money and revenues are not increasing as compare to MBT’s increasing. So they should stop the MBT’s because they cannot continue with the tax credit.
In my opinion, it is ethical for a business to accept government incentives. It can help for the success of the business. The business who accept incentives can respond to criticism that they are able to receive incentives from the government. The government must alter his policies for the business to whom they give a tax credit or not. (Forbes.com, 2017)
Forbes.com. (2017). Forbes Welcome. [online] Available at: https://www.forbes.com/sites/taxanalysts/2015/03/1… [Accessed 1 Aug. 2017].