The tax burden can influence businesses in several ways:
Profit Margins: Higher taxes reduce the net profit margins, affecting a company's bottom line. Investment Decisions: Businesses may reconsider or delay investments due to higher tax rates. Competitiveness: Companies in high-tax regions may find it harder to compete with those in low-tax regions. Cash Flow: Taxes impact cash flow, affecting the ability to manage day-to-day operations and working capital.