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Management Discussion.edited

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Running Head: MANAGEMENT DISCUSSION
Management Discussion
(Student’s Name)
(Affiliated Institution)

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MANAGEMENT DISCUSSION 2
Management Discussion
1. American businesses rely on short-term investments whose payback period is shorter,
with less rate of return. Most American business enterprises are risk-averse, hence less
investment as they depend on short-term forecasting (de Oliveira et al.,2018). Japanese
firms like long term investments whose payback period takes a longer time than
American businesses. For instance, Honda invested heavily for a long time, which took
many years before its break-even or payback period. But in the end, its investment paid
back. Honda made a risk, which is precisely opposite to American businesses. Because of
such differences, American enterprises are criticized; hence the reason is justifiable.
2. It is worth noting that most countries use a progressive income tax system due to its
merits. It is equitable to the income of taxable persons. The more an individual earns, the
more he or she pays (Barrios et al.,2020). The system utilizes the ability to pay principal
and reduces disparities in income and wealth distributions. Most importantly, it yields
maximum revenue to the government. Contrary, a flat tax system has a low impact as
income and wealth are not equitably distributed. It negatively affects taxable persons
living below the poverty line. A flat tax system only benefits the rich.
3. Additionally, it eliminates the IRS, and therefore, the flat tax system is not fairer.
However, the proportional tax system is fair, as tax-deductible is equivalent to a person's
income. A proportional tax is usually good because the taxpayer's relative economic
condition remains unchanged regardless of the revenue. It does not have adverse effects
on the taxpayer concerning working and saving.

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Running Head: MANAGEMENT DISCUSSION Management Discussion (Student’s Name) (Affiliated Institution) MANAGEMENT DISCUSSION 2 Management Discussion 1. American businesses rely on short-term investments whose payback period is shorter, with less rate of return. Most American business enterprises are risk-averse, hence less investment as they depend on short-term forecasting (de Oliveira et al.,2018). Japanese firms like long term investments whose payback period takes a longer time than American businesses. For instance, Honda invested heavily for a long time, which took many years before its break-even or payback period. But in the end, its investment paid back. Honda made a risk, which is precisely opposite to American businesses. Because of such differences, American enterprises are criticized; hence the reason is justifiable. 2. It is worth noting that most countries use a progressive income tax system due to its merits. It is equitable to the income of taxable persons. The more an individual earns, the more he or she pays (Barrios et al.,2020). The system utilizes the ability to pay principal and reduces disparities in income and wealth distributions. Most importantly, it ...
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