The flypaper theory of tax incidence
A)ignores the indirect effects of taxes.
B)assumes that most taxes should be "stuck on " the rich.
C)says that once a tax has been imposed, there is little chance of it changing, so in essence people are stuck with it.
D)suggests that taxes are like flies because they are everywhere and will never go away.

Question

Quizplus · Accepted Answer

The flypaper theory of tax incidence focuses only on the direct effects of taxes, ignoring the indirect effects on the economy and how those effects can change over time.

The Flypaper Theory of Tax Incidence