Double taxation refers to a corporation's income being taxed twice-first when the company pays corporate income taxes on income it earns,and then again when stockholders pay personal income taxes when the company distributes that income as dividends to them.

Question

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Double taxation is a real phenomenon that occurs when a corporation pays taxes twice on the same income earned- first on the corporate level and then on the individual shareholder level.

Double Taxation Refers to a Corporation's Income Being Taxed Twice-First