Economists Argue That the Corporate Income Tax Is an Example

Multiple Choice

Economists argue that the corporate income tax is an example of a tax with a high deadweight loss because

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