Question

"Double taxation means that both"a. wage income and interest income are taxed, which is currently the case in the United States. b. wage income and interest income are taxed, which is not currently the case in the United States. c. the profits of corporations and the dividends shareholders receive are taxed, which is currently the case in the United States. d. the profits of corporations and the dividends shareholders receive are taxed, which is not currently the case in the United States.

Answer 1

Answer: the profits of corporations and the dividends shareholders receive are taxed, which is currently the case in the United States.(C)

Explanation:

The double taxation of dividends explains how corporate earnings and dividends in the United States are taxed.

Corporations pay taxes on the earnings they make and the dividends paid to the shareholders out of the remaining earnings are also taxed. In the United States, taxes generate a huge amount of income to the government.