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Double Taxation of Corporate Earnings Means

Question 79

Multiple Choice

Double taxation of corporate earnings means


A) for individuals who get dividends on personal income, tax rates are twice as high as for wage earners.
B) stockholders pay personal income taxes and corporation taxes on profits.
C) stockholders don't get the plowback but still pay taxes on it.
D) the corporation tax raises stock prices so individuals also pay a capital gains tax in addition to a tax on dividends.

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