Which of the following affect the effective corporate tax rate?

Question

Quizplus · Accepted Answer

All the given options affect the effective corporate tax rate. Tax-based incentives like credits, deductions, and exclusions can reduce the amount of tax owed by a corporation, lowering their effective tax rate. The local corporate tax rate directly affects how much a corporation owes in taxes. The method of determining taxable income determines the amount on which the corporation will be taxed, thereby affecting the effective tax rate. Therefore, D is the correct answer.

Which of the Following Affect the Effective Corporate Tax Rate