Upgrade subject to access all content
Which one of the following BEST describes the concept of "double-taxation?"
Both owners pay taxes on a partnership's profits.
A proprietor pays both property taxes and income taxes on profits earned by the firm.
The profits of a corporation are taxed at the corporate tax rate, and any distributed after-tax profits are subject to personal taxation.
The entire pre-tax profits of a corporation are taxed at both the corporate and personal tax rates.
Since corporations receive their charters from states, they must pay both state and federal corporate taxes.