Question

How are businesses taxed with the corporate income tax?(1 point)
Responses

Businesses pay a proportional or progressive tax based on their profits.
Businesses pay a proportional or progressive tax based on their profits.

Businesses pay a proportional tax based on their total receipts.
Businesses pay a proportional tax based on their total receipts.

All businesses pay the same amount of tax each year.
All businesses pay the same amount of tax each year.

Businesses pay a progressive tax based on their total expenses.
Businesses pay a progressive tax based on their total expenses.

Answers

GPT-4o mini
The correct response is:

**Businesses pay a proportional or progressive tax based on their profits.**

In many jurisdictions, corporate income tax is typically assessed as a percentage of a company's profits, and the rates can be either proportional (flat) or progressive (increasing with higher profit levels).