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Running Head: THE CONSTITUTION AND BUSINESS

THE CONSTITUTION AND BUSINESS 4

THE CONSTITUTION AND BUSINESS

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The 14th amendment of the United states constitution, article 1 section 8, states that ‘the Congress shall have the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts, and excises shall be uniform throughout the United States' (Collins, 2013). On this amendment, the Congress is given authority by the federal government to take taxes and also to utilize the money collected for the welfare of individuals and also for security purposes. This section of the Constitution ensures that all businesses follow similar processes in taxation, debt settlements, and also payment of duties and excises. It also prevents any forms of malpractices such as tax and debt settlements evasion (Bakker & Kloosterhof, 2010). It limits small businesses in terms of profits since they go through the same method of taxation as large firms. This hinders their progress unless their profits increase at a progressive rate. Also, the tax imposed on their capital gains result in a reduction of their profits resulting to slow growth. Also, government control might limit the growth of firms due to the stated laws and regulations and its power to control tax. If the government raises tax, the small business entities are affected more than the large entities (Collins, 2013).

This section of the constitution in the 14th amendment could be applied in my professional life especially when managing my business in future. The section will assist me in identifying what is required of me by the law when operating the business. Through the collection of adequate information on taxation, duties, excises and any other income-related factors; I will be able to plan adequately to limit the number or risks associated with the reduction of profits for my business. However, the section of the constitution will limit my business as a result of government control when it comes to taxes and other forms of revenue associated with my business. If the government increases taxes, then my business will enjoy minimum profits that may deter its progress. Also, the bureaucracy process that is usually slow may affect the commencement of my business as a result of many meetings, and for a small entity, it may become difficult to establish a relationship with the government. Another limitation is on the funding process. The government controls the usage of the taxpayer money whereby it chooses the type of business that is profitable to fund instead of carrying out a vetting process. This puts asides small firms hence my business will depend mostly on profits instead of relying on government funds.

References

Bakker, A., & Kloosterhof, S. (2010). Tax risk management. Amsterdam, The Netherlands: IBFD.

Collins, C. (2013). The fourteenth amendment and the States.