RQ $1\mathrm{.}3$ & $1\mathrm{.}4.$ The term "double taxation" means that

the highest federal income tax rate faced by corporations is twice the highest tax rate faced by individuals

a corporation pays tax on the interest it pays to bondholders and then bondholders pay tax again on the interest payments they receive from firms

corporations pay tax on the income they earn and then shareholders pay tax on income that the corporation distributes to them

partnerships and sole proprietorships pay tax on the income that they earn, and then income distributed from the business to the owner is taxed again at the individual level