Double taxation means that both
A)the profits of corporations and the dividends shareholders receive are taxed,which is not currently the case in the United States.
B)the profits of corporations and the dividends shareholders receive are taxed,which is currently the case in the U.S.
C)wage income and employee benefits are taxed,which is not currently the case in the United States.
D)wage income and employee benefits are taxed,which is currently the case in the United States.

Question

Quizplus · Accepted Answer

Double taxation refers to the taxation of both corporate profits and dividends received by shareholders. This is currently the case in the United States, where corporations are taxed on their profits at the corporate tax rate and then shareholders are taxed again on any dividends they receive from those profits at their personal income tax rate. This is in contrast to some countries that only tax corporate profits and do not tax dividends received by shareholders, leading to a single layer of taxation.

Double Taxation Means That Both