Corporate income is taxed twice-once in the form of corporate income tax and the second time when the owner must pay income tax on dividends. What are the effects of this double taxation?
In equilibrium, investors do not lose by choosing to invest in a corporation. The risk-adjusted return must be the same for both types of investments. Corporations will be forced to avoid some investment opportunities that partnerships or proprietorships can consider. By avoiding opportunities with a positive but low expected return, corporations earn a higher return on their funds. Further, the prices of other investment opportunities will adjust to reflect the double taxation of corporate income. One can expect, therefore, no difference in the return on either type of investment.
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The time and money spent in carrying out financial transactions are called
A) economies of scale. B) financial intermediation. C) liquidity services. D) transaction costs.
As the price of dvds is raised from $3 to $5, their quantity demanded fell from 200,00 . to 180,000 . The elasticity of demand of dvds is:
a. 0.21 b. 1.28 c. 3.52 d. .65
If Korea's average annual growth rate is 9 percent and that of the United States is 4 percent, the time required for Korea's real GDP to double will be ____ less than the time required for the GDP of the United States to double
a. 3 years b. 6 years c. 12 years d. 15 years e. 10 years
Which of the following is NOT true about the aggregate demand curve?
A. The aggregate demand curve shows total planned real expenditures at different price levels. B. The aggregate demand curve considers the entire circular flow of income. C. Changes in the economic conditions in other countries will lead to a shift of the aggregate demand curve. D. The production possibilities curve determines the slope of the aggregate demand curve.