A corporation with large pre-tax earnings would have a marginal federal income tax rate of

Question

Quizplus · Accepted Answer

As of my last update in 2023, the U.S. federal corporate income tax rate for corporations with large pre-tax earnings is 21%. However, none of the options provided match this rate. Historically, before the Tax Cuts and Jobs Act of 2017, the highest corporate tax rate was 35%, which is closest to option C, 34%. This suggests a possible error in the question or that it's based on outdated or hypothetical tax rates. Given the options, 34% is the closest to historical high rates before the tax reforms.

A Corporation with Large Pre-Tax Earnings Would Have a Marginal