Federal & State programs and other incentives that attract IFDI
The desire to attract foreign direct investment causes countries to engage in competition with each other. Many regions, counties, and states have enacted policies to incentives and established agencies to promote investment so as to encourage FDI. The incentives are of financial and fiscal nature. Fiscal incentives are designed in such a way that they reduce the tax burden of companies and includes tax concessions that are usually in the form of tax holidays, reduced income tax rates, exemptions from import duties, accelerated depreciation allowances on capital taxes and duty drawbacks on exports. Financial incentives, on the other hand, consist of direct contributions to companies from the government. Financial incentives include subsidized loans, grants, loan guarantees, government insurance at preferential rates and publicly funded venture capital participation in investments that involve high commercial risks (Dadush, 2013).
Authorities participate in a fierce competition to attract foreign direct investment in order to create jobs and help build the local economy. An example of a successful case is the BMW plant in the state of South Carolina which was constructed in the port of Charleston, which was previously under-utilized. The BMW Company received incentives from the United States government amounting to $130 million which included tax incentives, job training, and road improvements. In return, BMW
Can we continue to support individuals who abuse their welfare benefits? The public assistance programs created during the 1930’s that have provided a safety net for people living below the federal poverty level. Chemical dependency screenings and monthly account audits are presently needed to thwart the irrational spending of supporting welfare recipients that misuse their benefits to obtain illegal drugs or alcohol. I feel that drug screening new applicants or beneficiaries who currently receive public assistance should become mandatory to strengthen the integrity, accountability, and health of our welfare program in America.
Do you do the right thing when no one is watching you? If you do then you are morally and ethically correct. As the good old saying stated “Do unto other as you like them to do unto you”. As the world has a gatekeeping if you believe in GOD, also the policy and regulations has one as well. The only question is who is it and what is the placement in the position in the government with factor that are place in front of them.
In recent years, the federal aid system has tripled in numbers in over 25 years. Some federal aid programs can range from a giant billion to a more obscure prams such as $15 million. In the beginning, federal aid programs would require other states to match the federal funds on a dollar for dollar basis. There was initial struggle when the federal aid system began to expand many believe that it would be difficult to opt out of new federal aid programs. Thus, it left residents with requirement to continue to pay federal taxes in order to support the federal aid spending.
Foreign investment is an important part of our economy. There are many benefits to foreign investment in any country. It would be very difficult or impossible today to close the doors to foreign investment. The fact is foreign investment is responsible for providing a great deal of needed capital in this country. This capital is an asset in the continuous modernization and expansion of our manufacturing and other productive facilities. Without investment in our factories and processes we would fall behind in the world market. These investments lead to increased competitiveness within the international community.
Entitlement programs have drastically changed our nation over the past 75 years. In this essay I will show how entitlement programs such as the New Deal in 1933, the Great Society in 1965 and the Affordable Care Act in 2010 have negatively affected our country.
Another contributing factor in boosting the economy was tax code incentives with the tax exemptions ("Tax Policy…”). This incentive allowed for a corporation that was more than 80% foreignly owned to have 100% of its dividends to be paid to the parent company ("Tax
The US bases a rate on social benefits to determine if you are eligible for federal assistance programs, programs such as Section 8, Head Start, and food stamps. These federal assistance programs are designed to support American citizens. You would think that these programs would aid the citizens’ all-year round, especially sense poverty rates are only increasing. However, $600 billion dollars is awarded annually, occurring only once a year. Is this really beneficial to ALL the people in need? “The … poverty rate is 14.5%, meaning 45.3 million people in the US live in poverty … over 8 million since 2008. An additional 97.3 million (33%) of people living in the United States are low-income, defined as incomes below twice the federal poverty
Many people in our country have turned to public assistance for help in our troubling economy. Welfare programs in our country date back to the early 1900’s. When these programs first started they were set up to support those who genuinely needed it. Many of the people who use these programs are hard working people who have had unfortunate things happen to them. However for those who use government assistance for good there are those who take advantage of the programs. Those who take advantage have turned to drugs and are unable or unwilling to make the necessary life changes that the others using the support have. Welfare programs were started to help those who have fallen into an undesirable situation such as losing a job. These programs are not setup to aid in or assist in people’s drug habits. Drug use has substantially risen over the years many of the drugs that people are using are worse than recreational marijuana use. They are also set up to help mothers with children to keep their children at home and not in foster care. Also to ensure that children and theirs parents have food, shelter, and basic everyday essentials. Drug testing those who receive public assistance would be beneficial to the whole country. While there will always be these that insist that drug testing these people is unconstitutional. It also appears that those taking advantage of the system is also unconstitutional. Drug testing, as a requirement for welfare, would ensure that those who have a
(CMS) Centers of Medicare and Medicaid Services is an operating division within the Department of Health and Human Service. This federal aid program is in charge of the joint programs. The Medicare and Medicaid program is controlled by both the federal and state governments. Medicare is the health insurance for three different qualifying groups. The first group is for Individuals who are age 65 and older. The second group consist of people who are under the age of 65 but, have disabilities. The third group has no age requirement because these patients have been diagnosed with end stage renal disease. Since this disease does not have a pill or shot to treat it, the patient has little to no options. Patients with end stage renal failure usually
Depending on whose perspective you are viewing them from, economic incentives can be regarded as either positive or negative. In order to determine the best option for all parties involved, one must analyze and weigh the short and long term effects that those incentives will have, not only on the state’s economy, but local businesses, residents and municipal governments.
If there is one thing that all Americans respond to is incentives. Offer “all you can eat” buffets and people will eat a lot more. Offer students money in exchange for test scores and they will surely try their best. There has been constant discussions and debates whether or not schools should offer this opportunity to students. Although, there is some cons to this program being implicated, incentive programs are not the only solution for America's school system, but it is a step in the right direction.
The problem with this alternative is the degree of variability within these programs that might limit access, eligibility or benefits to those who need it. Connecticut has legislation underway that sets up a program that is completely employee funded, which puts an increased financial burden on the employee rather than splitting the contributions with their employers, despite the cost saving benefits employers may receive (Report of the Family Medical Leave Insurance Task Force, 2014). The challenges and barriers to federal/state programs are evident, one example of this is Medicaid. Medicaid is dramatically different from state to state which has made oversight difficult and diminished access to quality care (U.S. Government Accountability Office, 2015).
FDI allows the home country to invest into the host country to produce, advertise, and distribute products, in order to upsurge their market share and provides a long-term investment and enhancement. (Moosa, 2002)
One way, countries attract inward FDI is through organizations that work actively promote foreign investment, also known as investment promotion agencies (IPAs) (World Bank, 2005). IPAs can help countries develop strategies to improve their investment climate (World
The standard of living in the recipient country is also improved by higher tax revenue from the company that received the foreign direct investment. However, sometimes countries neutralize that increased revenue by offering tax incentives to attract the FDI in the first place.