What is meant by the term "tax incidence"? What is the tax incidence of the personal income tax? What is the tax incidence of the corporate income tax?
What will be an ideal response?
Tax incidence refers to the distribution of tax burdens among various groups in society. The tax incidence of the personal income tax is on those who pay the taxes. On the other hand, economists are uncertain as to the tax incidence of the corporate income tax. It may be borne by stockholders, consumers, workers, or bondholders.
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Suppose sport utility vehicles get poor gas mileage compared to other available cars. If the price of gasoline increases, then one would then expect:
A. the demand for gasoline to decrease. B. the demand for sport utility vehicles to increase. C. the demand for sport utility vehicles to decrease. D. the quantity demanded of sport utility vehicles to decrease.
Which of the following is least likely to overcome the free-rider problem?
A. offer people a private gift for contributing B. arrange for matching contributions C. appeal to people's sense of civic or moral responsibility D. maintain anonymity of contributions
The tax rebate of 2008 is an example of
a. expansionary monetary policy. b. contraction fiscal policy. c. contraction monetary policy. d. pump priming.
To reduce the outflow of dollars from the United States, we need to
A. lower the budget deficit and the trade deficit. B. raise the budget deficit and the trade deficit. C. raise the budget deficit and lower the trade deficit. D. lower the budget deficit and raise the trade deficit.