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What Does the Congressional Budget Office Assume with Respect to the Tax

Question 21

Multiple Choice

What does the Congressional Budget Office assume with respect to the tax incidence of excise taxes?


A) Producers bear the entire tax burden.
B) Consumers bear the entire tax burden.
C) Producers and consumers each bear part of the tax burden.
D) The owners of the capital used to produce the taxed goods bear all of the tax burden.

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