Explain how corporate profits are taxed twice
What will be an ideal response?
Corporate profits are taxed by the corporate income tax first. Second, dividends paid out of profits are taxed as personal income of the stockholders. If the company does not pay dividends but the value of the stock goes up, the stockholder will pay capital gains tax when he or she sells the stock.
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Which of the following would NOT be a cause for an increased American demand for the Mexican peso?
A) The United States having lower interest rates than Mexico B) Increased American demand for Mexican goods C) The expectation by speculators that the value of the peso is edging up D) More economic expansion in the United States E) None of the above.
China has a larger population than India and is expected to be the most populous nation in the world throughout the twenty-first century
Indicate whether the statement is true or false