Both corporate earnings and cash dividends received by stockholders are taxed by the federal government.

Name: Both corporate earnings and cash dividends received by stockholders are taxed by the federal government.
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Corporate earnings are taxed at the corporate level, and when these earnings are distributed as cash dividends to stockholders, the dividends are also subject to taxation at the individual level, leading to what is often referred to as double taxation.

Both Corporate Earnings and Cash Dividends Received by Stockholders Are