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The corporate income tax:

A. is a progressive tax
B. tends to drive up consumer prices
C. is the largest source of federal tax revenue
D. All of the above

Sagot :

GinnyAnsweridn

Final answer:

The corporate income tax is not progressive and affects corporate profits without directly raising consumer prices.


Explanation:

The corporate income tax is not a progressive tax; it is a flat tax imposed on corporate profits. This tax does not drive up consumer prices directly but can influence prices indirectly through its impact on companies' cost structures. While it is not the largest source of federal tax revenue, it has been a significant contributor over the years, representing about 1% to 2% of GDP in recent decades.


Learn more about Corporate Income Tax here:

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The correct answer is C. The corporate income tax is primarily characterized as the largest source of federal tax revenue in the United States. Unlike personal income tax, it is not inherently progressive but rather imposes a flat tax rate on corporate profits. While it can indirectly affect consumer prices through cost pass-through in certain markets, its primary role is revenue generation for the government, supporting various public services and expenditures. Therefore, the correct answer is C.
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