Economic and Tax Advantages of Business Expansion

The business expansion offers various benefits to the business owners, customers, suppliers, and even government through its agencies and authorities. Business expansions will have economic advantages to the people in the community. For example, the business expansion will create employment opportunities to the people, which will improve the standard of living through the salary and other earnings. The infrastructure within the area of business expansion will be improved to ensure that the movement of people, materials, and finished goods can reach the business destinations and markets without any challenge ( Daude et al., 2017 ). Business expansion will offer a wide tax base for the government, as the tax collected will increase. With the increase in tax base and tax collection, the rate of project developments within the area of business expansion and the entire region will increase. 

Economic and tax implications will have various influences when making decisions whether to expand or not to expand the business. Business expansion will mean that the market for the products offered by an organization will increase and the range of products will increase. Since it will be advantageous to the organization, it will influence the decision to expand. Considering the taxes, business organizations might not be willing to expand their business if the taxes played will be more than the revenue collected from the business ( Daude et al., 2017 ). When the business is focusing on expansion, it considers various factors like the market, infrastructure, and availability of labor. Business expansion will focus on areas with such factors such that its operations will not lead to losses or difficulties in operation. Some business pays lower taxes while other pays higher taxes. Those paying lower taxes will consider expanding their businesses while those paying higher taxes might not consider expanding their businesses. Business expansion will have both tax and economic advantages, which are considered by the responsible individuals and departments before deciding to expand their businesses. 

Reference 

Daude, C., Gutiérrez, H., & Melguizo, Á. (2017). Doctoring the ball: the political economy of tax incentives for investment in the Dominican Republic. Journal of Economic Studies , 44 (1).