Why Do Economists Argue That the Corporate Income Tax Is

Multiple Choice

Why do economists argue that the corporate income tax is an example of a tax with a high deadweight loss?

A) Because some of the burden of the tax is passed on to consumers in the form of higher prices
B) Because it encourages corporations to seek ways to evade taxes
C) Because taxing a corporation's income amounts to double taxing the earnings on individual shareholders' investments in corporations
D) Because it discourages corporations from undertaking capital investments to enhance market competitiveness