Question

While corporations in Texas benefit from "pro-business" policies, including no income tax, taxes on corporations are still collected and are known as the __________ tax.

Answer 1

franchise

Step-by-step explanation:

A franchise tax refers to a government fee levied on a few companies like businesses and associations with a connection in the country by some US states. A franchise levy is not income-based. Somewhat, the classic estimate of a franchise tax is predicated on the individual's net value or capital.

According to the tax regulations in each jurisdiction, the level of a franchise tax in a particular state can vary widely. Many jurisdictions will determine the sum of franchise tax due on a basis of the assets of the company or net worth, whereas others will refer to the performance of the company's physical capital.