A CBO Study Estimated That the Excess Burden from the Corporate

question 26

Multiple Choice

A CBO study estimated that the excess burden from the corporate income tax ________ of the revenues raised by the tax.This estimate would make the corporate income tax ________ imposed by the federal government.

• A)could equal more than half; one of the most inefficient taxes
• B)equals less than 10 percent; one of the most efficient taxes
• C)equals less than 3 percent; the most efficient tax
• D)equals more than 90 percent; the most inefficient tax

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Definitions:

Treble Damages

A type of compensation awarded in a lawsuit where the damages are tripled as a punitive measure against the defendant.

Clayton Act

A U.S. antitrust law enacted in 1914, intended to supplement the Sherman Act by addressing specific practices that could lead to monopolies or restrain trade.

Functional Discount

A reduction in price given to channel members for performing specific roles or functions beneficial to the discount grantor.

Chain of Distribution

The pathway through which products or services move from the manufacturer or provider to the final consumer, including all intermediaries.