The "economic incidence" of an excise tax illustrates

Question

Quizplus · Accepted Answer

The economic incidence of an excise tax refers to who ultimately bears the burden of paying the tax, whether it is the producers or the consumers. It is a measure of the distribution of the tax burden between various parties in the market, and is distinct from the legal incidence of the tax, which refers to who is legally responsible for paying the tax to the government. The political and legislative processes involved in implementing the tax, as well as the costs associated with avoiding the tax, are not directly related to the economic incidence of the tax.

The "Economic Incidence" of an Excise Tax Illustrates