Which of the following is an example of tax shifting?
A)As taxes on businesses rise,businesses raise their prices
B)As property taxes increase,landlords raise rents
C)Businesses making their taxes consumer taxes
D)All of these choices are true.

Question

Quizplus · Accepted Answer

Tax shifting refers to the phenomenon where the burden of tax is shifted from one entity to another, typically from businesses to consumers. Option A describes the scenario where businesses raise their prices in response to increased taxes, which shifts the tax burden onto consumers. Option B describes a similar scenario where landlords raise rents to compensate for increased property taxes, which ultimately affects tenants. Option C describes the act of businesses passing their taxes onto consumers by incorporating them into the prices of goods and services. Since all three options demonstrate tax shifting from one entity to another, the correct answer is D - all of these choices are true.

Which of the Following Is an Example of Tax Shifting