The corporate tax is a twofold expense. The government first
gathers imposes on corporate benefits and afterward charges shareholders
through the individual salary duty code on either their profit wage or their
capital addition. The corporate income tax becomes less progressive as more
Americans invest in pensions, real estate, mutual funds and direct stock
holdings. More than 50 percent of American households now own equities either
outright or through personal retirement plans. Gains in capital ownership by
lower-income individuals will be increasingly punished by double-taxation as
their holdings grow.
Progressive tax is a tax that takes a larger percentage from
the income of high-income earners than it does from low-income individuals.