The incidence of taxation is the impact of a tax on those who bear its burden, rather than those who pay it. For example, VAT is paid by traders, but the ultimate burden of it falls on the consumer of the trader's goods or services. Again, a company may pay corporation tax but if it then raises its prices or reduces its employees' wages to recoup the tax it may be said to have shifted the incidence. Research Incidence of Taxation
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Matt and Leela Probert
Abbreviations
Research Incidence of Taxation
