I read this statement: There is no-such thing as progressive profit tax in the U.S. because business profits are taxed at a flat rate. True?
Does not concern CFA curriculum. But I live in US and I can tell you, we have a cap on the tax rate. But we do have progressive tax rates. However, its very skewed, i.e. you have to be really really low income to be getting really cheap rates of tax. For mostly middle income and high income, the difference between tax rate is very minimal. I’d like to see this go up, and with Democrats coming to power this may very well be the case.
But what about businesses?
Honestly don’t know. Wouldn’t be surprised if there a flat corporation tax rates. Which is why we have LIFO AND DEFERRED TAX LIABILITY.