Tax Shifting Refers to the Fact That

question 124

Multiple Choice

Tax shifting refers to the fact that

• A) sellers will try to pass the burden of an excise tax on to the buyers.
• B) high-income groups tend to pay a higher average tax rate than low-income groups.
• C) as one earns a higher income, one shifts to a high tax bracket.
• D) a nation can sometimes shift from a progressive tax structure to one that is regressive.