Is payment of corporate tax by a firm included/excluded in national income?
Is payment of corporate tax by a firm included/excluded in national income?
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No,
It will not be included in the national income as it is a transfer payment to the government.
Explanation:-
Payment of corporate tax will not be included in the national income. It is a part of corporate profits which already form part of national income, therefore, it should not be separately included in national income (in addition to corporate profits). otherwise it will lead to double counting.
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