Asked by
Emily Eldridge
on Nov 26, 2024Verified
Sales and excise taxes are levied on retailers, but retailers add these taxes to the prices of their products. This illustrates the
A) equal sacrifice theory of taxation.
B) shifting of taxes to consumers.
C) ability-to-pay principle of taxation.
D) benefits-received principle of taxation.
Shifting
The process of transferring a burden, such as tax from one entity to another, or changing the position of something.
Excise Taxes
Taxes imposed on specific goods, services, or transactions, often aimed at discouraging consumption of certain items or raising revenue.
- Understand the principle of tax shifting and its effects on various taxes.
Verified Answer
CM
Learning Objectives
- Understand the principle of tax shifting and its effects on various taxes.