Which of the following is true about the economic effects of the corporate income tax?

Question

Quizplus · Accepted Answer

The economic effects of the corporate income tax are complex and not easily predictable. However, most economists agree that the incidence of the tax is likely to be shared by owners of capital, workers, and consumers of corporate products. Owners of capital may experience lower profits or dividends, which would affect their income. Workers may experience lower wages as corporations try to offset the tax burden. And consumers may experience higher prices as corporations pass on the tax burden to them. Therefore, the correct answer is D.

Which of the Following Is True About the Economic Effects