"Double Taxation" Means

question 338

Multiple Choice

"Double taxation" means:

• A)If stockholders decide to sell their shares,they are subject to paying twice the amount of taxes on any capital gains.
• B)As the owner of the company,you pay twice the amount in employment taxes on yourself,as you do on your employees.
• C)Corporations pay taxes on their profits.If they distribute after-tax profits to the stockholders,the stockholders also pay taxes on the distribution.
• D)If the corporation doubles its profits from the previous year,the firm's tax rate the percentage it pays in taxes)will also double.

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