Corporate profits are taxed

Question

Quizplus · Accepted Answer

Corporate profits are taxed twice - first at the corporate level, and then again when they are paid to stockholders as dividends, which are subject to personal income taxes. This double taxation can result in a higher overall tax burden for companies and their shareholders. However, it should be noted that not all corporate profits are paid out as dividends, and shareholders can also benefit from the capital gains tax rate if they sell their shares for a profit.

Corporate Profits Are Taxed