Tax characteristics of corporations include which of the following?
I.At higher income levels, the lower tax rates phase out by the use of a surtax.
II.The corporate tax rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%.

Question

Tax characteristics of corporations include which of the following?
I.At higher income levels, the lower tax rates phase out by the use of a surtax.
II.The corporate tax rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%.
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Quizplus · Accepted Answer

The corporate tax rate in the United States is a flat rate, not a progressive system with rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37% as described in statement II; those rates apply to individual income tax, not corporate tax. Additionally, the concept of a surtax phasing out lower tax rates at higher income levels does not apply to the current U.S. corporate tax structure, making statement I incorrect.

Tax Characteristics of Corporations Include Which of the Following