Double-taxation in the U.S.tax system generally refers to:
A)the fact that both employers and employees pay a payroll tax.
B)the taxation as regular income of dividends paid to stockholders out of profits upon which taxes have already been paid.
C)the occasional imposition of a tax surcharge on the personal income tax paid by Americans to their federal government.
D)the doubling of the corporate profits tax rate as corporations' incomes climb above $100,000.
E)none of the above.

Question

Quizplus · Accepted Answer

Double-taxation in the U.S. tax system refers to the taxation of dividends paid to stockholders out of profits upon which taxes have already been paid. This is because corporations are already taxed on their profits before distributing dividends to shareholders, who are then taxed again on the same income as regular income.

Double-Taxation in the U.S.tax System Generally Refers To