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What is double taxation?
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29th Oct 2009 by Mark P. Cussen, CFP, CMFC
Double taxation occurs when two different entities tax the same income. This is one of the main disadvantages of corporate income, as it is taxed once at the corporate level and then again at the employee or investor level. Most taxpayers pay double taxation on the majority of their income, once to the federal government and then again to their state. (They may be taxed a third time at the local level on certain types of income as well.)
Double taxation occurs when two different entities tax the same income. This is one of the main disadvantages of corporate income, as it is taxed once at the corporate level and then again at the employee or investor level. Most taxpayers pay double taxation on the majority of their income, once to the federal government and then again to their state. (They may be taxed a third time at the local level on certain types of income as well.)
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29th Oct 2009 In Tax
1 Answers | 69 Views
Subjects: double taxation,
taxation,