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Author Question: The government imposes a luxury tax on automobiles that cost more than $40,000. As a result, fewer ... (Read 341 times)

RODY.ELKHALIL

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Question 1

As a result of an increase in the payroll tax that employers must pay on their employeesʹ wages, employers reduce the starting wage for new employees. This is an example of


◦ tax shifting.
◦ tax incidence.
◦ a regressive tax.
◦ tax avoidance.

Question 2

The government imposes a luxury tax on automobiles that cost more than $40,000. As a result, fewer individuals purchase cars that cost more than $40,000. This is an example of


◦ tax equity.
◦ tax shifting.
◦ tax evasion.
◦ tax incidence.


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Marked as best answer by RODY.ELKHALIL on Apr 19, 2019

1_Step_At_ATime

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