Which of the Methods Below Would Avoid Double Taxation

question 103

Multiple Choice

Which of the methods below would avoid double taxation?

• A)A flat tax, as opposed to a progressive tax, is levied on corporate profits
• B)A system where the federal government continues to tax corporate income through the corporate income tax but allows individual taxpayers to receive, tax free, corporate dividends and capital gains.
• C)A system whereby a corporation calculates its annual profit and notifies each shareholder of her portion of the profits.The shareholder would then be required to include this amount as taxable income for her personal income tax.The corporation also pays tax on its corporate income.
• D)None of the above.

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Definitions:

Independence Schema

A cognitive framework centered on self-sufficiency and the ability to function independently from others.

Aschematics

Individuals who lack schema or mental representations in certain areas, leading to a neutral or indifferent attitude towards those subjects.

Confidence Level

The measure of one's belief in their own abilities or chances of success.

Possible Selves

The aspects of the self-concept that represent individuals’ ideas of what they might become, what they would like to become, and what they are afraid of becoming.