The incidence of a tax refers to:

A) who receives the benefits from the revenue generated by the tax.
B) the changes in the marginal tax rate as income increases.
C) whether the tax is regressive,proportional,or progressive.
D) who bears the burden of the tax.
E) whether the tax is based on the ability-to-pay principle.

Tax Incidence

The distribution of tax burden among taxpayers; who ultimately pays the tax.

Marginal Tax Rate

The percentage of each additional dollar of income that goes to the tax.

Regressive

A term used to describe a tax system in which the tax rate decreases as the taxpayer's income increases, placing a larger burden on lower-income earners.