Which of the following is a means to avoid the double taxation burden imposed on the profits of corporations?

Question

Quizplus · Accepted Answer

All of the choices listed are means to avoid the double taxation burden imposed on the profits of corporations. Treating corporations as passthrough entities for federal tax purposes would allow the profits to flow through to the shareholders without being taxed at the corporate level. Enacting tax legislation that would make dividends nontaxable to all of the corporation's shareholders would eliminate the additional tax burden on shareholders. Allowing corporate shareholders a credit on their tax returns for the taxes paid by the corporation on the profits currently distributed to shareholders as dividends would avoid double taxation by reducing the amount of tax paid by the shareholder. Therefore, all of the choices would avoid double taxation.

Which of the Following Is a Means to Avoid the Double