When the supply of savings is not perfectly inelastic, the corporate income tax can be shifted to workers.

Question

Quizplus · Accepted Answer

When the supply of savings is not perfectly inelastic, an increase in the corporate income tax can lead to a decrease in savings, which can result in a decrease in investment and a decrease in labor productivity. This, in turn, can lead to a decrease in wages for workers, effectively shifting the burden of the corporate income tax to them.

When the Supply of Savings Is Not Perfectly Inelastic, the Corporate