Multiple Choice
Article Summary
Monthly marijuana sales in Colorado topped $100 million for the first time in August, 2015, with $59.2 million in recreational sales and $41.4 million in medical sales. Colorado has levied three types of state taxes on recreational-use marijuana: a 2.9% standard sales tax, a 10% special marijuana sales tax, and a 15% excise tax on wholesale marijuana transfers. The 15% excise tax is earmarked for school construction projects. In August, recreational-use taxes and fees totaled $11.2 million and medical taxes and fees were $2 million, bringing total revenue-to-date for the year to over $86 million.
Source: Elizabeth Hernandez, "Colorado monthly marijuana sales eclipse $100 million mark," Denver Post, October 9, 2015.
-Refer to the Article Summary above.Colorado taxes marijuana with a 12.9% sales tax on buyers and a 15% wholesale excise tax on producers, which equates to 46 percent of the total taxes paid by retail buyers and 54 percent paid by producers.Does this necessarily mean that buyers will bear 46 percent of the burden of the tax and producers will bear 56 percent of the burden?
A) Yes, the percentage of taxes paid by each group represents the burden of the tax.
B) No, because consumers and producers always bear equal burdens of a tax.
C) No, the burden of a tax is always 100 percent on the consumer.
D) No, the burden of the tax will depend on the elasticity of demand and supply.
Correct Answer:

Verified
Correct Answer:
Verified
Q5: The largest percentage of federal income tax
Q62: Holding all other factors constant, income earned
Q73: The actual division of the burden of
Q105: Exemptions and deductions are used<br>A)to add to
Q118: Figure 18-6<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4193/.jpg" alt="Figure 18-6
Q141: As a group, people with high incomes
Q154: The average tax rate is calculated as<br>A)total
Q213: Figure 18-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4193/.jpg" alt="Figure 18-2
Q239: Figure 18-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4193/.jpg" alt="Figure 18-7
Q246: Which of the following is the source