Corporate taxes are levies imposed on the profits earned by businesses. These taxes contribute to government revenue and help fund public services and infrastructure.
Think of corporate taxes as membership fees that businesses have to pay in order to be part of society. Just like how individuals pay taxes for public benefits, corporations also contribute their fair share through these taxes.
Marginal tax rate: The marginal tax rate is the percentage of tax paid on an additional dollar earned by a business or individual.
Tax incentives: Tax incentives are special deductions or credits offered by governments as an encouragement for businesses to engage in certain activities or invest in specific areas.
Double taxation: Double taxation occurs when both corporate profits and dividends distributed to shareholders are taxed separately.
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