Question

The federal corporate tax rate in the U.S. became a flat _____ percent with the passage of the Tax Cuts and Jobs Act of 2017.

a) 20%
b) 25%
c) 30%
d) 35%

Answer 1

The correct federal corporate tax rate after the Tax Cuts and Jobs Act of 2017 is 21%, which is not listed in the provided options.

Step-by-step explanation:

The correct federal corporate tax rate after the Tax Cuts and Jobs Act of 2017 is 21%, which is not listed in the provided options. The federal corporate tax rate in the U.S. became a flat 21% percent with the passage of the Tax Cuts and Jobs Act of 2017. None of the options a) 20%, b) 25%, c) 30%, or d) 35% are correct. Before the passage of this act, corporate tax rates were structured in such a way that they increased on a graduating scale with income brackets, with rates up to 35% on incomes above $18,333,333. However, following the new legislation, this structure was simplified, and corporate income tax was set at a uniform 21% rate regardless of income levels.