What Is "Double Taxation" in the Context of a Corporation

question 89

Short Answer

What is "double taxation" in the context of a corporation?
Consumers are taxed twice, once when they purchase products and once when they receive dividend cheques.
The federal government taxes corporate earnings at twice the rate of earnings of sole proprietors.
Gross earnings are taxed, then net earnings.
A corporation must pay income taxes on its profits, and then shareholders must also pay personal income taxes on the dividends they receive from the corporation.
None of these explain double taxation.

---

Definitions:

Ribs

Long, curved bones that form the rib cage, providing protection to the thoracic organs and support to the upper body.

Sternum

The sternum, or breastbone, is a long flat bone located at the center of the chest, connecting to the ribs and supporting the thoracic region.

Epiphysis

The end part of a long bone, which is initially growing separately from the shaft during development.

Diaphysis

The diaphysis is the main or midsection (shaft) of a long bone, distinguished from the bone's ends or epiphyses.