Asked by Samantha Valadez on Jun 16, 2024
Verified
Many economists believe that
A) the corporate income tax satisfies the goal of horizontal equity.
B) the corporate income tax does not distort the incentives of customers.
C) the corporate income tax is more efficient than the personal income tax.
D) workers and customers bear much of the burden of the corporate income tax.
Corporate Income Tax
A tax imposed by a government on the income earned by companies.
Horizontal Equity
The principle that individuals with similar income or resources should be treated equally by the tax system.
Incentives
Refers to stimuli, rewards, or payments that motivate individuals or entities to perform certain actions or behaviors.
- Analyze how corporate income taxes impact stakeholders, including workers and customers.
Verified Answer
CA
Cailee AnsayJun 21, 2024
Final Answer :
D
Explanation :
The corporate income tax can lead to higher prices for consumers and lower wages for workers, as companies may pass on the costs of these taxes to them. This is why many economists believe that workers and customers bear much of the burden of the corporate income tax.
Learning Objectives
- Analyze how corporate income taxes impact stakeholders, including workers and customers.
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