Explore BrainMass

Explore BrainMass

    Corporate Taxation

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Why should corporations not be taxed?

    © BrainMass Inc. brainmass.com March 4, 2021, 7:52 pm ad1c9bdddf

    Solution Preview

    1. The corporation is not a real person and only real persons should be taxed.
    2. The corporation is already taxed in an indirect manner when it pays taxes on the goods produced or it pays sales tax.
    3. The corporation provides an important and essential service to the society and so should not be taxed.
    4. The taxing of corporations leads to double taxation, first the taxation that the corporation pays and the taxes that the shareholders pay when they receive their dividends. In other words the same income is taxed twice and that is not equitable.
    5. The taxing of corporations is a discouragement to enterprise and business initiatives. The result is that the corporations that are taxed are less equipped to face ...

    Solution Summary

    Corporate taxation is discussed very comprehensively in this explanation.