multiple choice question\nin which of the following ways do corporations end up paying less in taxes?\no the…

multiple choice question\nin which of the following ways do corporations end up paying less in taxes?\no the government has decreased payroll taxes on individual workers.\no they pay payroll taxes in lieu of corporate taxes.\no they take advantage of tax loopholes, such as not having to pay federal income tax.\no they move all business to foreign soil and avoid paying u.s. taxes.
Answer
Brief Explanations:
- Decreasing payroll taxes on individual workers doesn't directly reduce a corporation's tax burden. Payroll taxes are typically paid by employees (though employers may have some related costs), and this option is about individual - level payroll tax changes.
- Payroll taxes and corporate taxes are different types of taxes. Payroll taxes are related to employee compensation (e.g., Social Security and Medicare taxes in the US, with a portion often paid by employers), while corporate taxes are on corporate profits. They are not substitutes in the way described in this option.
- Moving all business to foreign soil is an extreme and often not fully practical option. There are still many factors (such as global supply chains, market access in the home country, etc.) that prevent most corporations from completely relocating. Also, tax laws are complex, and simply moving may not completely avoid all U.S. - related taxes (e.g., if there are still U.S. - source income or assets).
- Tax loopholes are a well - known way for corporations to reduce their tax liability. For example, some corporations may use accounting methods or take advantage of specific legal provisions (even if controversial) to minimize their federal income tax payments.
Answer:
They take advantage of tax loopholes, such as not having to pay federal income tax.