Profits of a large corporation are taxed twice, once as corporate income and again as personal income of stockholders.

Question

Quizplus · Accepted Answer

Profits of a large corporation are subject to corporate income tax, and when they are distributed as dividends to shareholders, the individuals are subject to personal income tax on the earnings received. Therefore, the profits of a large corporation are taxed twice.

Profits of a Large Corporation Are Taxed Twice, Once as Corporate