Answer
If a worker owns stock in a company, the company's profits are taxed via the corporate income tax.
Work Step by Step
If the company then pays dividends to the shareholders, the shareholder then pays tax via the individual income tax.
Principles of Economics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516587X
ISBN 13:
978-1-28516-587-5
Chapter 36 - Part XIII - Six Debates over Macroeconomic Policy - Questions for Review - Page 815: 9
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