Asked by Arcie Robyn on May 09, 2024
Verified
The corporate tax system takes away the benefit of low rates on early income as income increases.
Corporate Tax System
The legal framework governing how businesses are taxed by the government on their profits, varying significantly between countries.
Early Income
Revenue or earnings generated before the usual or expected time, often within a fiscal period.
- Apprehend the construct and repercussions of tax rates applied to both individuals and corporate entities.
Verified Answer
MJ
Montana JonesMay 11, 2024
Final Answer :
True
Explanation :
The corporate tax system is structured so that as a corporation's income increases, the tax rate also increases, taking away the benefit of low rates on early income. This is often referred to as a progressive tax system.
Learning Objectives
- Apprehend the construct and repercussions of tax rates applied to both individuals and corporate entities.