Purchase Solution

Public Finance: Justify separate taxation of corporations

Not what you're looking for?

Ask Custom Question

How could corporate income be explained under a comprehensive income tax without recourse to a corporate income tax? How can separate taxation of corporate income be justified?

Purchase this Solution
Solution Summary

The 312 word cited solution carefully explains the concepts complete with examples.

Solution Preview

How could corporate income be explained under a comprehensive income tax without recourse to a corporate income tax?

The concept of comprehensive income includes earnings from the use of labor and capital. Our system of taxation has separated those two sources and taxed them differently. The rates tend to be flat and lower for capital income but higher and progressive for earned income.

The pure concept of comprehensive income includes growth of capital. An example is that as the price of the stock of a corporation grows, ...

Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

View More Free Quizzes
Related BrainMass Solutions

  • Double Taxation referring to Corporations

    220770 What is the concept of double taxation when referring to corporations? What is the concept of double taxation when referring to corporations?

  • The strengths of taxation

    / This solution gives you a detailed discussion on Public Finance

  • Accounting education, experience and responsibilities

    Every legal, taxable, entity pays taxes--individuals, corporations, partnerships, estates and trusts. The typical taxation partner in the large public accounting firm earns hundreds of thousands a dollars per year, or even more.

  • Business Law and Types of Businesses

    Partnership: Two public chartered accountants form a firm that provides auditing services to public companies. The most suitable form of business is partnership.

  • Financial Terminology

    The corporations are subject to a high level of government regulations and subject to double taxation. The correct answer is that corporations are able to raise capital from the stock market and through issuing bonds.

  • International vs Domestic Financial Management

    If there are no policies in place to control taxation corporations could easily be taxed multiple times by the government. Taxation is a system of raising money to finance the government.

  • Business entities & Types of Businesses

    This eliminates the double taxation of C corporations.

  • Corporate Taxation

    If the corporations are taxed the products that these corporations produce become costlier and the general public suffers because of this price increases. Market Factors: 1. The taxes on corporation taxes are not seen.

  • Taxation

    Our federal tax laws tend to encourage corporations to finance with debt rather than with equity securities. d. Our federal tax laws encourage the managers of corporations with surplus cash to invest it in stocks rather than in bonds.

View More Related Solutions