A corporation pays taxes on its earnings.When the earnings are distributed as dividends, the shareholders pay taxes on these dividends.This is called _____.
A)corporate and personal taxation
B)double taxation
C)excessive taxation
D)tax burden

Question

Quizplus · Accepted Answer

Double taxation is when a corporation pays taxes on its earnings and then the shareholders pay taxes on the dividends they receive from those earnings. This can be seen as unfair or excessive taxation to some.

A Corporation Pays Taxes on Its Earnings