Asked by Shanda Mckinney on May 07, 2024
Verified
Most economists believe that a corporate income tax affects the stockholders of a corporation but not its employees or customers.
Corporate Income Tax
A tax imposed on the net income of a corporation, calculated on its net earnings.
Stockholders
Individuals or entities that own shares in a corporation, granting them certain rights and potentially a share in its profits.
- Gain an understanding of the essential elements of tax generation and the diverse types of taxes that are collected by state and local governmental bodies.
Verified Answer
SJ
Shelby JordanMay 14, 2024
Final Answer :
False
Explanation :
Economists generally agree that the burden of a corporate income tax is shared among the stockholders, employees, and customers. Stockholders may see lower returns on their investments, employees could receive lower wages, and customers might face higher prices as corporations pass on some of the tax costs.
Learning Objectives
- Gain an understanding of the essential elements of tax generation and the diverse types of taxes that are collected by state and local governmental bodies.