Final answer:
Businesses manage resources to make a profit and are required to pay various taxes that help generate government revenue. Effective taxes should be equitable, simple, and efficient. Tax strategies can be used to guide economic sustainability and environmental responsibility.
Step-by-step explanation:
Businesses must effectively manage their resources to maintain a positive cash flow and earn a profit, calculated as Profit = Total Revenue - Total Cost. Companies are obligated to pay various taxes such as income tax, employment tax, unemployment compensation, social security insurance, excise tax, and, in some states, payroll taxes. These taxes contribute to the government's revenue, which is necessary for national operation.
Effective taxes need to fulfill three key criteria: they must be efficient, simple, and equitable to ensure they are easily administrable and capable of generating sufficient revenue without negatively impacting the industry they tax. Furthermore, the type of business dictates the specific tax requirements they must adhere to.
To achieve a sustainable economy, it may be essential to regulate resource flow and waste. Tax policies can encourage this by taxing the extraction and pollution components of businesses while possibly removing tax burdens from labor, helping to control environmental impact while fostering economic activity.