Tax incidence analysis seeks to determine:

A) who sends the tax payment to the government.
B) who actually pays the tax.
C) who ultimately gets the tax revenue.
D) whether a tax is in the benefits-received category or the ability-to-pay category.

Question

Sydney Magers · Accepted Answer

Final Answer : B, Explanation :  Tax incidence analysis seeks to determine who actually bears the burden of a tax, which could be the consumer, the producer, or shared between the two. Option A discusses who physically sends the tax payment to the government, which is not the same as the tax burden. Option C tries to identify who ultimately benefits from tax revenue, whereas the tax incidence looks at who bears the burden. Option D looks at the nature of the tax system, which could be based on benefits received or ability to pay, but does not consider who ultimately bears the burden of the tax.

Tax incidence analysis seeks to determine:

A) who sends the tax payment to the government.
B) who actually pays the tax.
C) who ultimately gets the tax revenue.
D) whether a tax is in the benefits-received category or the ability-to-pay category.

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Learning Objectives

Learning Objectives

Related questions

Tax incidence analysis seeks to determine:A) who sends the tax payment to the government.B) who actually pays the tax.C) who ultimately gets the tax revenue.D) whether a tax is in the benefits-received category or the ability-to-pay category.

Definitions

Learning Objectives

Learning Objectives

Related questions

Tax incidence analysis seeks to determine:

A) who sends the tax payment to the government.
B) who actually pays the tax.
C) who ultimately gets the tax revenue.
D) whether a tax is in the benefits-received category or the ability-to-pay category.