Which of the following is most effective in mitigating the double tax?
A) Shift income from high tax rate corporations to low tax rate shareholders.
B) Shift income from high tax rate shareholders to low tax rate corporations.
C) Shift income from low tax rate corporations to high tax rate shareholders.
D) Shift income from low tax rate shareholders to high tax rate corporations.

Question

Quizplus · Accepted Answer

Shifting income from high tax rate corporations to low tax rate shareholders reduces the overall tax burden by taking advantage of the lower tax rates applicable to the shareholders, thereby mitigating the double taxation effect.

Which of the Following Is Most Effective in Mitigating the Double