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

Question

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.

Answer 1

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).