Asked by Melisa Di?isa?lam on May 12, 2024
Verified
The corporate tax system appears not to be progressive, but in fact it's more progressive that the personal system. Explain.
Corporate Tax System
The regulatory framework governing how businesses are taxed on their profits by the government, including tax rates and allowable deductions.
Progressive
Referring to a tax system where the tax rate increases as the taxable amount increases, ensuring higher earners pay more in taxes.
- Distinguish between progressive, regressive, and flat tax systems and their impact on taxpayers.
Verified Answer
CB
Courtney BrusseauMay 15, 2024
Final Answer :
The corporate system recovers the benefit of lower rates on the first money earned as income increases substantially, the personal system does not do that directly.
Learning Objectives
- Distinguish between progressive, regressive, and flat tax systems and their impact on taxpayers.