Tax incidence refers to the study of who bears the burden of taxes, including how taxes are distributed among different groups in a population. It is not the same as the amount of tax paid or the effect of a tax. While taxes may change people's behavior and could potentially have an impact on tax incidence, this is not the primary focus of the concept.

Solved

Tax Incidence Is

Question 128

Multiple Choice

Tax incidence is:

A) the study of who bears the burden of taxes
B) the amount of tax that each taxpayer must pay
C) the amount by which a tax will alter people's behaviour
D) the effect of a tax

Correct Answer: