Policymakers who wish to punish businesses that pollute by taxing them:

Question

Quizplus · Accepted Answer

All of these statements are true. Policymakers often forget that businesses will simply pass on the cost of the tax to their consumers through higher prices. Additionally, it can be difficult to determine who ultimately bears the burden of the tax, as businesses may be able to shift it to other parties such as suppliers, workers, or shareholders. Ultimately, the tax may end up being most heavily felt by those who can least afford it, such as low-income consumers.

Policymakers Who Wish to Punish Businesses That Pollute by Taxing