This paper pretends to look into taxation as a key aspect of the economy of countries, looking at how it affects companies and people differently and what should be the best procedures to be competitive with other countries. Therefore the focus will be on the two major economical/political systems used, such as socialism and liberalism with focus on Portugal (Socialism) and Netherlands (Liberalism). The Thesis explains the different focus on Liberal (Netherlands) and Socialist (Portugal) fiscal policies such in regards to their tax collection and application on society and companies. First, a higher percentage on tax collection is generally used in socialist countries who also promote a greater public spending and difficult entry of competition and innovation with higher taxes. Obviously, that kind of focus means that education, healthcare and public services are given priority over investment, job creation and entrepreneurship. Secondly, a less percentage of tax collection is used usually by a liberal country like the Netherlands which leads to an increase in investment on fields like innovation, investment, job creation and entrepreneurship so therefore there will be a greater economy and better salaries. Possibly the public services, healthcare and education will be on a secondary priority. Upon looking at the two definitions of priorities and the path chosen to reach success for companies and a better life quality to the population who it is possible to understand that taxes have to be collected and applicated according to the countries reality (meaning their population, the type of companies) and the countries who are competing with them directly. The paper shows that tax collection does not have to be higher for more public spending nor for better public services. Also it is more likely to have more companies and better salaries in countries who choose lower tax rates on companies and people. But the main conclusion is that tax rates, tax collection and tax application have to be flexible so that the ...