Economists have shown that the burden of a tax is the same whether the tax is collected from the buyer or the seller.Why, then, are gasoline and cigarette taxes imposed on sellers?

Question

Quizplus · Accepted Answer

It is more difficult for buyers to keep track of their purchases because they are usually small and frequent. Additionally, for the government, it is harder to verify that the right amount of tax revenue is collected from each individual buyer. Therefore, it is easier and more efficient for the government to collect taxes from sellers who have a greater capacity to keep track of the number of units sold and the taxes owed.

Economists Have Shown That the Burden of a Tax Is