"Double Taxation" Refers To

question 79

Multiple Choice

"Double taxation" refers to:

• A) all partners paying equal taxes on profits.
• B) corporations paying taxes on both dividends and retained earnings.
• C) paying taxes on profits at the corporate level and dividends at the personal level.
• D) the fact that marginal tax rates are doubled for corporations.

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Definitions:

Budget Line

A graphical representation showing the combination of two goods that a consumer can purchase with a given income, at specified prices.

Price

The total money calculated, demanded, or paid in exchange for something.

Money Income

The total earning or revenue received by an individual or household, including wages, salaries, benefits, and other monetary sources.