The allocation of tax burden
A)is the total tax burden less the excess burden.
B)is tax payments plus the excess burden.
C)is tax shifting.
D)is the tax incidence.

Question

Quizplus · Accepted Answer

The allocation of tax burden refers to the distribution of the tax burden or incidence among different groups, individuals or factors. Therefore, the correct choice is D, as tax incidence refers to the economic analysis of the effects of taxation on the distribution of the tax burden among different groups in the economy. Choices A and B are not correct, as they refer to the measurement of the overall impact of taxation on the economy, but not to the distribution of the burden. Choice C is not correct, as it refers to the process of passing the tax burden from one group to another, rather than to the final distribution of the burden.

The Allocation of Tax Burden