Tax Incentives Functions and Application

Firstly, the tax incentives imply the reductions of taxes for the organization for performing the desirable and socially beneficial actions (Rubin 8). The primary reason for utilizing this approach is the easiness to attract various businesses and establishments, as the taxes define their potential income. It remains evident that the shift of the expected revenues contributes to increasing the income among individuals and households (Rubin 310).

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Additionally, this approach can be considered as the core driver for actions for various medical institutions, social service providers, and other individuals and organizations, which can contribute to the enhancement of the welfare at national and international levels. In this instance, the application of this method is beneficial from the public perspective due to the rise of the potential income. In turn, it has a positive influence on governmental spending, as it reduces the expenditure on community health and development due to the individual and organizational interventions in the enhancement of the process.

Nonetheless, it is questionable when a suitable timeframe for the advantageous application of this tactic is. It could be said that this method has to be implemented when the country does not experience the severe consequences of the deficit, as the taxes are the primary sources of the income, which determine the states of the governmental budget (Rubin 20).

Additionally, this approach might be a requirement due to the inability to increase the spending in the social segment, as providing poor and homeless people with reduced taxes and shelter will improve the welfare of the state (Rubin 21). It could be said that the favorable economic conditions could be considered as a key determinant of the application of this procedure, as the share of the income will be reduced. In turn, the increased levels of poverty can also be taken into account as the definer due to the necessity to enhance the economic and social wellbeing of the citizens.

It remains evident that the governmental authorities should state the essentiality and possibility of the application of the tax incentives as they have a relevant understanding of the current economic condition of the country. The formation of the budget at the local and federal levels implies the ability to gather the necessary components, which depict the relevant portrayal of the federal economy (Rubin 21). In this instance, the absence of this knowledge might lead to the development of the deficit due to the lack of income. The presence of these aspects and features defines the essentiality of the participation of the regional or federal authorities in the decision-making while discussing the potential implementation of the tax incentives to support community health and development.

Lastly, the probable approaches for the application and utilization of the tax incentives to enhance the social and economic conditions of the community have to be discussed. One of the potential solutions is tax reduction (Rubin 10). In this instance, the organizations with the ownership of the large properties can have their taxes cut for proving their assets for organizing various events, concerts, and training. Additionally, the taxes can be reduced for the hospital and various pharmaceutical companies for the decrease of the prices for the particular groups or proving services for free for the citizens in need. Nonetheless, the taxes have to be reduced wisely with the profound evaluation of the potential consequences. Otherwise, it might be a primary cause of the deficit and malfunctioning of the economy.

Work Cited

Rubin, Irene. Budgeting, Policy, Process, and Politics, London: Routledge, 2008. Print.

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StudyCorgi. "Tax Incentives Functions and Application." December 22, 2020.


StudyCorgi. 2020. "Tax Incentives Functions and Application." December 22, 2020.


StudyCorgi. (2020) 'Tax Incentives Functions and Application'. 22 December.

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