The Effects of Income Tax on Investment Decisions in The Province of Portsmouth (2009- 2019)
Journal of Contemporary Issues in Business and Government,
2021, Volume 27, Issue 3, Pages 57-66
AbstractThis study explores the relationship between income tax and investment decisions in the province of Portsmouth. As stated by Martinelli (2017) income tax makes up to 30% of the total government revenue in the province of Portsmouth, England. A progressive income tax system is applied in the UK, which means that tax imposes higher rates on higher income earners unlike to those on a lower income, in other words, the higher income earners pay more taxes while the low-income earners pay less. However, as it is well known there are some individuals are entirely excluded from taxation, such as the disabled, the extremely low-income earners and other minority groups. Therefore, residents in the province of Portsmouth are discouraged from working hard, because the more they earn, the more burden of taxation they face. A key finding from the study is that the government will always support investment activities whenever income tax reduces. Among the ways of supporting investment activities is to ensure credit accessibility to both the large and small enterprises. Both primary and secondary research is used in performing the study. Secondary research helps obtain an understanding of the problem by looking at what previous researchers have done. Primary research was also conducted to help obtain firsthand information regarding the current problem. While employing a qualitative approach, with random sampling techniques, the obtained results, analysis, and conclusions are reliable.
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