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The Incidence of a State Sales Tax Levied on the Purchase

Question 53

Multiple Choice

The incidence of a state sales tax levied on the purchase of retail goods is:


A) Borne by the ultimate purchaser of the goods.
B) Borne by the seller who must collect and remit the tax.
C) Borne by the manufacturer of the goods.
D) Borne by the government that levies the tax.

Correct Answer:

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