One Argument Advanced in Favour of Reducing Corporate Income Tax

question 22

Multiple Choice

One argument advanced in favour of reducing corporate income tax rates is

• A)corporations increase the wealth of shareholder's which contribute to increases in GDP.
• B)reducing corporate income tax will lead to a higher capital stock and a higher standard of living.
• C)corporate dividends accrue mostly to middle-income and low-income investors who are already paying heavy income taxes.
• D)corporate income tax is illegal.

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Definitions:

Internal Jugular Vein

A major vein that collects blood from the brain, face, and neck, and returns it to the heart.

Hepatic Vein

A vein that drains de-oxygenated blood from the liver into the inferior vena cava.

Axillary Vein

A vein that conveys blood from the lateral aspect of the thorax, armpit, and upper limb toward the heart.

Inferior Vena Cava

A large vein carrying deoxygenated blood from the lower body to the heart.