The government sets up several regulations regarding businesses. These are highly advantageous both to the government and the individual business persons. The taxes that are charged by the government are used to regulate businesses. Goods that the government discourages in the society, like alcohol and cigarettes are taxed higher. Basic commodities like milk, corn, and bread are taxed at lesser rates because they are food commodities. Very essential services like hospitals and schools are sometimes not taxed, due to their impact in the society. Most businesses are taxed depending on the amount of money they earn. The higher the money that a business makes, the more money in taxes they pay. The taxes also vary due to the number of employees in the business and whether they are permanent and part time employees.
Laws are created through parliament, senate and through referendums to regulate businesses and ensure sanity in the business environment. The laws guide the process of hiring and process of handling employees in the business. The laws also guide the process of manufacturing and processing of goods. The laws guide on how to deliver services to the clients and penalties in case of breach of contract. The government also enforces taxes or tariffs to international trade to regulate the entry and exit of goods and services across the borders. This ensures that raw materials from the country are regulated and processed goods from abroad are regulated to encourage local products.
The government also sets up organizations and institutions to that are charged with the responsibility of monitoring and ensuring that the business follow the laws and are able to interpret the business laws to the businesses. The organizations also ensures that the business have the best order of business practices. The Federal Trade Commission law on advertising to protect consumers is commendable and I support it. It protect consumers and ensures that businesses are honest about their products.
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BA 301 Week 2 Discussion Government Regulations.docx