Asked by ROBVIN PINEDA on May 04, 2024
Verified
Tax incidence refers to
A) what product or service the tax is levied on.
B) who bears the tax burden.
C) what sector of the economy is most affected by the tax.
D) the dollar value of the tax revenues.
Tax Incidence
The manner in which the burden of a tax is shared among participants in a market.
Tax Burden
The measure of the total amount of taxes that individuals, businesses, or other entities must pay, relative to their income or profits.
Tax Revenues
The income that is gained by governments through taxation, which is used to fund public services, government obligations, and goods.
- Understand the definition and implications of tax incidence.
Verified Answer
KS
Karuna SinghMay 09, 2024
Final Answer :
B
Explanation :
Tax incidence specifically refers to who ultimately bears the burden of a tax, whether it be consumers, producers, or another group, rather than the specifics of the tax's application or its revenue.
Learning Objectives
- Understand the definition and implications of tax incidence.